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InGovern Research Services Pvt Ltd, a proxy advisory firm, has raised serious questions over the sudden departure of Infosys’ Chief Compliance Officer and his severance package. Infosys, on Sunday, informed the stock exchanges that David Kennedy has left the company after a mutual separation agreement between him and the company.
Voluntary exit sans logicInGovern has said the sudden departure of David Kennedy raises a serious question about whether his departure was triggered by an event that may have material consequences on the company.
“His departure, only within two months of being given a revision in pay, is surprising. No reasons for his departure has been provided by the company. If an employee voluntarily resigns from the company, there is no logic of paying a severance package by the company. Also, in such cases the employee has to serve a notice period before leaving the company,” said InGovern, in which Infosys veteran Mohandas Pai has a stake.
As a part of the separation as well as his employment agreements, Kennedy will receive severance payments of $8,68,250 plus reimbursements for continuation coverage over a period of 12 months. Other details of the separation agreement are not disclosed. Kennedy is being paid a severance pay and is also not serving any notice period in the company, which makes it clear that his service has been terminated by Infosys.
‘Provide reasons’“Since he was in an important position as the General Counsel as well as Chief Compliance Officer, his departure may have been triggered by an event that may have material consequences on the company. Hence, it is imperative for the company to provide reasons for his abrupt termination,” the corporate governance advisory firm said. Also, basis of calculating amount of severance pay has not been disclosed to shareholders.
“Infosys, in its annual report has stated that apart from Vishal Sikka, its Managing Director, no other directors are eligible for any severance pay. However, no such disclosure has been made regarding KMPs and other senior employees of the company,” InGovern added.
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