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Infosys will have to pay its former CFO Rajive Bansal the remaining ₹12.17 crore of the severance package it owes him.
In a notification to the exchanges, Infosys said the arbitral tribunal, which went into this issue, added that while Infosys had bona fide disputes with Bansal, its counter-claim for refund of the previously paid severance amount of ₹ 5.2 crore and damages has been rejected.
Infosys paid Bansal only ₹5.2 crore of the promised exit payout of ₹17.38 crore. Bansal dragged the company to court, and subsequently, in 2017, invoked his right to an arbitral tribunal on the issue of Infosys holding back a substantial portion of his severance pay.
It is understood that the severance pay was halted as co-founder NR Narayana Murthy had said that such a large payout may be viewed by some as “hush money”, and castigated the board for not having made all disclosures with respect to it.
Some proxy advisory firms and other investors, too, raised the issue of high exit payouts, saying they were unprecedented and went against the culture of Infosys. All this happened when Vishal Sikka was CEO, and R Seshasayee the Chairman; both of them resigned a year ago.
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