Rajiv Bansal, former Chief Financial Officer of Infosys Ltd., has approached an arbitration tribunal for the remaining Rs 12 crore of his severance pay, which was suspended after co-founders questioned the payout, said a person familiar with the development.
Bansal has invoked his right to an arbitral tribunal and the first hearing is scheduled next month, the person added.
Infosys had agreed to pay Bansal a severance package of Rs 17.38 crore, or 24-month pay, when he quit Infosys in 2015. The company had said the payout was in accordance with the contractual rights and obligations. The payment was suspended after co-founders, including NR Narayana Murthy, and others termed it excessive. Bansal has received Rs 5 crore so far.
Infosys had said that certain payments to Bansal had been suspended pending certain clarifications. “The company wishes to clarify that the suspension is not on account of any extraneous consideration,” Infosys had said in a statement.
Bansal’s decision to move the arbitral tribunal was first reported by Times of India.
Bansal declined to comment when contacted by BloombergQuint. Infosys said, “The company has already clarified on the severance package for the former CFO Rajiv Bansal through a detailed statement. We do not have anything additional to add at this point.”
Murthy has questioned executive compensation and corporate governance at Infosys at least twice since February. Murthy, in an interview to Economic Times, had raised doubts over excessive payments, saying the severance payout could be seen as “hush money.”
Denying the “hush money” charge, Infosys chairman R Seshasayee had in an interview to BloombergQuint admitted there was an “element of subjectivity” in the decision on the former CFO’s severance pay, but a similar situation won’t arise in the future.