Vishal Sikka will not receive severance pay

Infosys_Vishal_Sikka1

Infosys ex-chief executive Vishal Sikka will not receive his severance package as his resignation does not fulfil the clauses laid out in his agreement, the company’s Board chairman R Seshasayee said.

The severance clause of Sikka’s termination entitled him to receive at least USD 2 million in the event of his exit.

“Pursuant to the approval from the shareholders through postal ballot on March 31, 2016, Dr. Vishal Sikka is eligible to receive under the 2015 Plan, an annual grant of time-based RSUs of fair value $2 million which vest over time, subject to continued service, and an annual grant of performance based equity and stock options of $5 million subject to achievement of performance targets set by the Board or its committee, which vest over time,” Infosys had said in its annual filing to the US Securities an d Exchange Commission earlier this year.

This implied that he was entitled to receive at least USD 2 million as severance pay when he leaves Infosys.

However, responding to a question about severance pay for the erstwhile top boss at Infosys, Seshasayee said that Sikka would not receive severance because he resigned.

Sikka resigned Friday morning citing continuous distractions and increasingly personal attacks on him as the reason.

The chief operating officer UB Pravin Rao has been appointed as the interim CEO and MD of the company. While Sikka stays on to help with transition to a new top executive, he will be paid a salary of USD 1.

Sikka used to receive an annual salary of Rs 48.73 crore in 2015-16. The annual report of Infosys said that his salary dropped to Rs 16.01 crore in the financial year 2016-17.