Infosys submits settlement application with SEBI over Rajiv Bansal's severance pay

Neha Alawadhi Moneycontrol News

IT major Infosys on Wednesday said it has submitted a settlement application to the Securities and Exchange Board of India (SEBI) with regard to issues surrounding the severance package of its former Chief Financial Officer.

"The settlement application pertains to matters relating to severance agreement entered into with the former CFO in October 2015," Infosys said in a filing to the stock exchange. "Through the settlement process, the company wants to resolve allegations relating to the Company not seeking prior and separate approval of the Nomination and Remuneration Committee and the Audit Committee in relation to the severance agreement with the former CFO; and in relation to disclosures pertaining to the said severance agreement, cessation of payments and initiation of arbitration under the severance agreement."

Former CFO Rajiv Bansal's high severance package was among the concerns that Infosys co-founder NR Narayana Murthy had raised with the then Board and CEO Vishal Sikka earlier this year.

Bansal was reportedly not in favour of the acquisition of Israeli firm Panaya. When Bansal left in 2015, Infosys had agreed to pay him Rs 17.38 crore as severance, about two years of pay. But the company paid out only about Rs 5 crore before suspending the payments.