Infosys severs all ties with Vishal Sikka, settles full and final dues

Infosys Chief Executive Vishal Sikka_Infosys_Vishal_Sikka_Infosys1

Infosys will cut all ties with former CEO and Managing Director Vishal Sikka. According to the company’s statement, Sikka will be paid his agreed-upon severance, truly marking the end of his tenure with India’s second largest software services company.

Last week, after Sikka resigned, he had been appointed executive vice chairman of the Board, but since the new role wasn’t active, the company said it would now complete all resignation formalities of the first non-co-founder CEO of the company.

“…Dr. Sikka’s employment contract as MD and CEO as executed on April 1, 2016 and approved by the shareholders. Accordingly Dr. Sikka will receive 90 days’ base pay in lieu of notice of USD 246,575, a variable pay of USD 205,572 and company-paid COBRA (employee benefits) for 90 days,” the company said in a statement.

It further said all equity awards outstanding as on separation date to the extent such awards are unvested will terminate on the date of separation.

“All equity awards that vested during his employment with the Company will remain as vested as per the terms of the equity plan and award agreement. A separation agreement reflecting this and other terms such as a mutual release and non-disparagement obligation has been approved by the Board,” the statement added.

Nandan Nilekani, the new chairman of the Board, said the “Board will actively consider a broad based shareholder consultation process as a critical part of its overall engagement initiatives with all the stakeholders of the Company that are being taken up on a priority basis”.

Infosys had earlier said that if he had run the course at the company as EVC, Sikka would have received USD 1 as his salary until he stayed. It had also said Sikka will not receive his severance package because his resignation does not fulfil the clauses laid out in his agreement.