Lost Arbitration Case: Infosys To Pay Rs 12.17 Crore to Its Former CFO

Arbitral Tribunal decreed a 12.17 crore compensation with interest to Rajiv Bansal, Former Chief Financial Officer of Infosys Limited after the latter lost the arbitration case over severance package.

Infosys said it will take legal advice for further action on the issue.

The IT firm had agreed to pay Bansal a severance amount of Rs 17.38 crore or 24 months of salary, but the company suspended payments after he got Rs 5 crore as co-founder N R Narayana Murthy and others objected to the severance package as excessive.

Following this, Bansal had dragged his former employer to arbitration to claim the remaining Rs 12 crore of his severance pay.

Bansal’s severance payout has been one of the issues that Infosys founders had raised to allege governance lapses at the Bengaluru-based firm.

When Bansal left Infosys in 2015, Infosys had agreed to pay him Rs 17.38 crore in severance pay, equivalent to 24 months of pay.

Infosys & Temasek to Join Hands Together

India’s second-largest software services exporter Infosys Ltd said on Friday it formed a joint venture with Singapore state investor Temasek as it expands its presence in Southeast Asia.

Temasek looks to enhance its IT services through the venture in which Infosys will hold a 60 percent stake and Temasek 40 percent, Infosys said in a statement.

The joint venture will integrate teams from Infosys and the operations of Temasek’s unit in Singapore, Trusted Source Pvt.  Ltd, which currently delivers IT services to Temasek and a number of other clients.

Headquartered in Singapore, the joint venture will have more than 200 employees and contractors from Trusted Source, while Infosys staff will join over time.

The companies named Shveta Arora, Infosys vice president and regional head in South East Asia, as chief executive officer of the new venture.

Infosys Stocks Slipped Below Rs 1,400

Infosys slipped over 3 percent in morning trade on Monday after company on Saturday announced that its Chief Financial Officer M D Ranganath has stepped down to pursue “professional opportunities in new areas”.The stock which rallied by about 40 percent in 2018 came under pressure. The index breached its crucial psychological support at Rs 1400.

His resignation was accepted by the Infosys Board on Saturday. Ranganath will remain CFO until November 16.“After a successful career spanning 18 years in Infosys, including as CFO for the last three crucial years, I now plan to pursue professional opportunities in new areas,” said Ranganath in a statement.NR Narayana Murthy, Infosys’ co-founder, said, “I have worked with Ranga for over 15 years. He is clearly one of the best CFOs in the country. His ability to take tough decisions in challenging situations, his solid financial expertise, strong value system, unfailing courtesy and flawless execution always distinguished him as an exemplary leader and a key asset for the company.”

At 09:29 hrs Infosys was quoting at Rs 1,397.50, down Rs 33.85, or 2.36 percent on the BSE.