Phaneesh Murthy to lose Rs 84 cr as severance benefits from iGate

Murthy, who was sacked yesterday for not disclosing a relationship with a subordinate, however, is entitled to a post termination benefit of $6,000 per month till he and his spouse reach the age of 65.

hidden December 20, 2014 21:00:07 IST
Phaneesh Murthy to lose Rs 84 cr as severance benefits from iGate

New Delhi: Phaneesh Murthy, the disgraced former chief executive of iGate Corp, will lose as much as $15.09 million (about Rs 84 crore) in severance benefits after being sacked by the US-based firm for professional misconduct.

The US-based outsourcing firm iGatetoday saidMurthy will not be paid the contractual severance benefit ofas he wasdismissed from service for professional misconduct.

An iGate spokesperson told PTI: "Mr Murthy was terminatedfor cause, for a violation of iGATE s policy. He is not

entitled to severance under the terms of his employmentagreement. The parties are in discussions regarding potential

compensation for transition-related services."

Murthy, who was sacked yesterday for not disclosing a relationship with a subordinate, however, is entitled to a post termination benefit of $6,000 per month till he and his spouse reach the age of 65.

"Upon termination other than for cause, Murthy would receive a lump sum payment of twelve (12) months' severance at $1,000,000," iGate had said in a filing before the US Securities and Exchange Commission (SEC) in March this year.

Phaneesh Murthy to lose Rs 84 cr as severance benefits from iGate

Former iGate CEO Phaneesh Murthy.

iGate sacked Murthy for violating company policy on relationship with a colleague. Since his termination was for professional misconduct, he may end up losing the severance benefits.

Earlier in 2002, Murthy was forced to quit India's Infosys following a sexual harassment lawsuit against

him. This was settled out of court.

The filing further adds "Upon a change in control, Murthy's unvested stock units would immediately vest at a total value of $6,841,373.

"Upon a change in control, Murthy's unvested stock options would immediately vest at a total value of USD

7,245,707. Murthy is subject to nondisclosure, non-competition and non solicitation restrictions for a period of two (2) years after termination."

On the post termination benefit for Murthy, iGate in another SEC filing filed earlier this month had said: "On May 1, 2013, iGATE Technologies Inc....entered into Second Amendment Agreement ... with Phaneesh Murthy to provide for post termination benefits of USD 6,000 per month, indexed for inflation, until the latter of Mr Murthy and his spouse reach the age of 65 or become eligible for health coverage under a government-sponsored program."

PTI

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