Infosys Loses Arbitration Over Severance Package To Rajiv Bansal
Infosys Ltd. has lost an arbitration over severance package to its former Chief Financial Officer Rajiv Bansal and has been asked to pay an outstanding amount of Rs 12.17 crore, with interest.
“The arbitral tribunal has communicated its decision in the arbitration proceedings in relation to the severance agreement between the company and its former CFO, Mr. Rajiv Bansal,” Infosys said in a BSE filing.
“While the award acknowledges that Infosys had bona fide disputes, its counter claim for refund of previously paid severance amount of Rs 5.2 crore and damages, has been rejected,” the filing said, adding the arbitral award is confidential. Infosys said it will take legal advice for further action on the issue.
The IT company had agreed to pay Bansal a severance amount of Rs 17.38 crore, or 24 months of salary, but the company suspended payments after he got Rs 5 crore as co-founder NR Narayana Murthy and others objected to the severance package as excessive.
Following this, Bansal dragged his former employer to arbitration to claim the remaining Rs 12 crore of his severance pay. Bansal’s severance payout has been one of the issues that Infosys founders had raised to allege governance lapses at the Bengaluru-based company.