Infosys ex-CFO Rajiv Bansal goes for arbitration to recover pending severance pay dues
Infosys paid Bansal just Rs 5 crore before suspending the remaining payment that was due to him
Rajiv Bansal, the former chief financial officer of Infosys, whose high severance package became the bone of contention between the founders and the board of late, has reportedly gone for arbitration clause with regards to pending dues of Rs 12 crore payable to him.
At the time of quitting the company in 2015, a severance package of Rs 17.38 crore was promised to Bansal, equivalent to two years of pay. However, Infosys paid him just Rs 5 crore before suspending the remaining payment that was due to him.
“Certain payments to Rajiv under the agreement have been suspended pending certain clarifications with regard to such rights and obligations," Infosys said in a statement then.
Former Supreme Court judge RV Raveendran has been appointed sole arbitrator in the case, and the first meeting is scheduled to take place next month, The Economic Times report said.
Infosys failed to honor the remaining severance payment due to Bansal after promoters led by N R Narayana Murthy had raised the issue in February.
In fact, Murthy went on to term the severance package to Bansal as 'hush money'.
Not just Bansal's severance package, the founders had also questioned the the compensation of Infosys' first non-founder CEO Vishal Sikka announced last year. For the current year, Sikka's yearly compensation has been fixed at $11 million, sharply higher than $7.08 million in 2016.
Recently, former Infosys CFO V Balakrishnan said pay hike for a top executive is "terrible for any leadership" when subordinates were being asked to "sacrifice" on wages. He was referring to Chief Operating Officer Pravin Rao's salary which was hiked sharply.
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The chairman of the nomination and remuneration committee Jeffrey Lehman and board chairman R Seshasayee "must accept their mistakes and show contrition", Narayana Murthy has said