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Phaneesh Murthy may lose $15 million as severance benefits
Phaneesh Murthy, the disgraced former chief executive of iGate Corp, may lose as much as $15.09 million (about Rs 84 crore) in severance benefits after being sacked by the US-based firm for professional misconduct.
Murthy, who was sacked on Tuesday for not disclosing a relationship with a subordinate, however, is entitled to a post termination benefit of $6,000 per month till he and his spouse reach the age of 65.
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Phaneesh Murthy may lose $15 million as severance benefits
"Upon termination other than for cause, Murthy would receive a lump sum payment of twelve (12) months' severance at $1,000,000," iGate had said in a filing before the US Securities and Exchange Commission in March this year.
iGate sacked Murthy for violating company policy on relationship with a colleague. Since his termination was for professional misconduct, he may end up losing the severance benefits.
Earlier in 2004, Murthy was forced to quit India's Infosys following a sexual harassment lawsuit against him.
This was settled out of court.
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Phaneesh Murthy may lose $15 million as severance benefits
The filing further adds, "Upon a change in control, Murthy's unvested stock units would immediately vest at a total value of $6,841,373.
"Upon a change in control, Murthy's unvested stock options would immediately vest at a total value of $7,245,707.
"Murthy is subject to nondisclosure, non-competition and non solicitation restrictions for a period of two (2) years after termination."
iGate did not respond to PTI queries on the issue.
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Phaneesh Murthy may lose $15 million as severance benefits
On the post termination benefit for Murthy, iGate in another SEC filing filed earlier this month had said: "On May 1, 2013, iGATE Technologies Inc. . . entered into Second Amendment Agreement . . . with Phaneesh Murthy to provide for post termination benefits of $6,000 per month, indexed for inflation, until the latter of Murthy and his spouse reach the age of 65 or become eligible for health coverage under a government-sponsored programme."