Rajiv Bansal is fighting an arbitration case against the IT bellwether for withholding his severance package of Rs. 17.38 crores. Bansal's severance package. The arbitral tribunal is examining submissions including oral and documentary evidence made by the two parties in closed-door hearings, which began in December.
Infosys has made this exorbitant counter claim alleging that Bansal breached trust and confidentiality and failed to fulfil his obligations to the company. When Bansal left the company in 2015, he was promised a severance package of 17.38 crores which was equivalent to 24 months' pay. The company paid Bansal Rs. 5 crore and suspended the remaining amount after founder NR Narayana Murthy objects to the severance package claiming it was 'hush money' and excessive.
The management of Bansal's severance and the Panaya deal were also the root cause former CEO Vishal Sikka's exit. During Sikka's tenure, an Israeli firm Panaya was acquired by Infy. Panaya was valued six times its revenue, despite the company being on the verge of a closure. Whistleblower allegations and media reports associate Bansal's exit with a huge severance package to the irregularities in the Panaya deal.
Earlier post a SEBI inquiry Infosys filed a settlement plea with the regulator over disclosure lapses regarding Bansal's severance package saying that the company will neither admit nor deny the finding of fact or conclusion of law. SEBI was investigating claims that Infy management did not follow the remuneration policy of the company and failed to seek prior approval of the audit committee for Bansal's severance package and provide timely disclosures to the bourses regarding the same.
This counter claim indicates Infosys' aggressive stance to Bansal arbitration case. Hope this time around, the new CEO Salil Parekh, is able to stir Infosys ahead without hiccups, especially to shareholders.