Following the Justice BN Srikrishna panel report indicting Kochhar, the bank said that it will retrieve bonuses she received since 2009
The Justice BN Srikrishna panel indicted former managing director and chief executive officer (MD and CEO) of ICICI Bank Chanda Kochhar in the Videocon loan case, and the bank will retrieve all bonuses paid to her between April 2009 and March 2018.
The board, following the receipt of the enquiry report, Wednesday decided to treat "the separation of Kochhar from the bank as a 'termination for cause' under the bank's internal policies, schemes and the code of conduct, with all attendant consequences". These include revocation of all her existing and future entitlements such as any unpaid amounts, unpaid bonuses or increments, unvested and vested and unexercised stock options, and medical benefits.
The board has also asked the bank to take steps for "clawback of all bonuses paid to her between April 2009 and March 2018, and to take such further actions as may be warranted in the matter".
According to a report in The Economic Times, Kochhar owes the bank close to Rs 350 crore, of which Rs 343 crore is through employee stock options (ESOPs) since FY09, and almost Rs 10 crore is in form of cash bonuses.
Kochhar became the managing director and chief executive of the leading private sector lender in May 2009 and left the bank in October 2018.
According to ICICI Bank's annual reports, Kochhar had been issued 94 lakh shares between FY08 and FY18, in all years except 2009. The bank aims to claw back these dues and stock option, although the report is not clear on how many of these options have been used and vested by Kochhar. Assuming that she exercised the entire stock allocated in the ESOPs, and Wednesday's closing price of the stock, the amount comes to about Rs 343 crore.However, a report in The Indian Express claims that she exercised 36.8 lakh shares of her ESOPs worth nearly Rs 134 crore in May 2015. This brings down the repayment amount to Rs 221 crore. The report adds that Kochhar earned close to Rs 9.82 crore as performance bonus between April 2009 and March 2018 as the CEO of the bank, which she may have to return.The Great Diwali Discount!
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