1. Former CFO Rajiv Bansal fighting Infosys over Rs 12 crore payment dues: report

Former CFO Rajiv Bansal fighting Infosys over Rs 12 crore payment dues: report

Following a long drawn controversy regarding the severance pay of Rajiv Bansal, the former Chief Financial Officer of Infosys, a new report suggests that he is fighting the company over dues.

By: | Updated: April 20, 2017 12:37 PM
rajiv bansal infosys, rajiv bansal, infosys, rajiv bansal cfo, rajiv bansal infosys cfo, rajiv bansal severance pay, rajiv bansal salary, rajiv bansal issue, infosys issue, infosys board, infosys founders, infosys, narayan murthy, vishal sikka, seshasayee, infosys vishal sikka, infosys seshasayee, infosys pay package, rajiv bansal 12 crore, rajiv bansal rs 12 crore, rajiv bansal Rs 17 crore, rajiv bansal pay package, rajiv bansal controversy, infosys controversy, infosys governance, rajiv bansal dues, rajiv bansal court According to Infosys, Bansal’s severance package at the company when he was leaving in 2015, was Rs 17.38 crore which equalled a 24 month’s pay. His salary package of 0,858 (end of March 2015) was next only to CEO Vishal Sikka and COO UB Pravin Rao.

Following a long drawn controversy regarding the severance pay of Rajiv Bansal, the former Chief Financial Officer of Infosys, a new report suggests that he is fighting the company over dues. According to a Times of India report, Bansal is fighting Infosys over Rs 12 crore that, as claimed, has been held back. According to Infosys, Bansal’s severance package at the company when he was leaving in 2015, was Rs 17.38 crore which equalled a 24 month’s pay. His salary package of $770,858 (end of March 2015) was next only to CEO Vishal Sikka and COO UB Pravin Rao. In this fight against Infosys, Bansal is being represented by Indus law, even though his usual advocates are AZB Partners.

Bansal had quit Infosys in October 2015 after a 17-year stint, including four years as the Chief Financial Officer of India’s second-largest information technology company. Amidst concerns on Bansal’s high severance pay, in February 2017, Infosys board admitted that it might have made mistakes in awarding him his money. Meanwhile, earlier Infosys’ non-executive Chairman R Seshasayee had said that the ‘judgement’ on Bansal’s severance pay could have been different. He had disclosed that while Rs 17.38 crore was decided and agreed upon, Bansal was paid only Rs 5 crore later. This, according to Seshasayee, was withheld due to pending clarifications on the issues regarding the severance contract.

Also read | Rajiv Bansal: How the man in the eye of Infosys governance drama lost in others’ battle

You may also like to watch:

Bansal was one of the three executives of Infosys whose high salaries and severance packages had created a turmoil at the company, where even the founders NR Narayana Murthy, Nandan Nilekani and Kris Gopalakrishnan wrote to the company board submitting their concern about corporate governance. Narayan Murthy went on to say that payments like these can be seen by many as ‘hush money’.

Also read | Rajiv Bansal, Infosys governance drama’s major character, quit Ola Cabs as CFO

Earlier, Infosys had said in a statement, “The severance agreement is being administered in accordance with the contractual rights and obligations. Certain payments to Rajiv under the agreement have been suspended pending certain clarifications with regard to such rights and obligations.”

You may also like to watch:

Seshasayee had claimed that ‘subjectivity element’ should be taken away in severance packages. He had said that Infosys, since then has not faced any Bansal-like situation, mainly due to standardised practices and severance pay package benchmarks that have been set. He had also said that there was no war between the company’s board and the co-founders.

  1. No Comments.

Go to Top