Phaneesh likely to lose $15 mn severance benefits from iGate
23 May 2013 11:15 AM GMT
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.
'Upon termination other than for cause, Murthy would receive a lump sum payment of twelve months' severance at $1,000,000,' iGate had said in a filing before the United States 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 Infosys following a sexual harassment lawsuit against him.
That case 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 unvested stock options would immediately vest at a total value of $7,245,707. Murthy is subject to non-disclosure, non-competition and non solicitation restrictions for a period of two years after termination.'
iGate did not respond to queries on the issue.
On the post-termination benefit for Phaneesh Murthy, iGate in another Securities and Exchange Commission filing filed earlier this month had said, 'On May 1, 2013, iGATE Technologies Inc....entered into a 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 program.’
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.
'Upon termination other than for cause, Murthy would receive a lump sum payment of twelve months' severance at $1,000,000,' iGate had said in a filing before the United States 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 Infosys following a sexual harassment lawsuit against him.
That case 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 unvested stock options would immediately vest at a total value of $7,245,707. Murthy is subject to non-disclosure, non-competition and non solicitation restrictions for a period of two years after termination.'
iGate did not respond to queries on the issue.
On the post-termination benefit for Phaneesh Murthy, iGate in another Securities and Exchange Commission filing filed earlier this month had said, 'On May 1, 2013, iGATE Technologies Inc....entered into a 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 program.’
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