Phaneesh
Murthy, the disgraced former chief executive of iGate, may lose as much
as about Rs 84 crore in severance benefits after being sacked by the
US-based firm for professional misconduct.
Murthy,
who was sacked yesterday 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.
"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 (SEC) 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.
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 invested 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 queries on the issue. On the post termination benefit for
Murthy, iGate in another SEC filing filed earlier this month had said:
"On May 1, 2013, iGate Technologies....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
Mr Murthy and his spouse reach the age of 65 or become eligible for
health coverage under a government-sponsored programme."
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