Phaneesh Murthy to lose about Rs 84 cr in severance benefits

In 2002,Murthy was forced to quit India's Infosys following sexual harassment lawsuit against him.

US-based outsourcing firm iGate today said the company8217;s sacked chief executive Phaneesh Murthy will not be paid the contractual severance benefit of around USD 15.09 million about Rs 84 crore as he was dismissed from service for professional misconduct.

While Murthy,who was sacked for hiding a relationship with a subordinate,will not get anything from the severance package,he is still eligible for USD 6,000 per month as post-termination benefit.

An iGate spokesperson told PTI: 8220;Mr Murthy was terminated for cause,for a violation of iGATE8217;s policy. He is not entitled to severance under the terms of his employment agreement. The parties are in discussions regarding potential compensation for transition-related services.8221;

In a filing to the US Securities and Exchange Commission SEC in March,iGate had said,8221;Upon termination other than for cause,Murthy would receive a lump sum payment of twelve months8217; severance at USD 1,000,000.8221;

The filing had further added: 8220;Upon a change in control,Murthy8217;s unvested stock units would immediately vest at a total value of USD 6,841,373. Upon a change in control,Murthy8217;s unvested stock options would immediately vest at a total value of USD 7,245,707.8221;

Yesterday,iGate sacked Murthy for violating company policy by hiding a relationship with a subordinate and for alleged sexual harassment.

Earlier in 2002, Murthy was forced to quit India8217;s Infosys following a sexual harassment lawsuit against him. This was settled out of court.

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On the post termination benefit for Murthy,iGate in another SEC filing filed earlier this month had said: 8220;On May 1,2013,iGATE Technologies Inc8230;.entered into Second Amendment Agreement 8230; with Phaneesh Murthy to provide for post termination benefits of USD 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.8221;

On the post termination benefit to Murthy,which as per the agreement stands at USD 6,000 per month,iGate said it is reviewing the agreement in light of his sacking.

8220;iGATE was not aware of the long-term relationship Mr Murthy had with a subordinate employee or claim of sexual harassment at the time the company agreed to grant these additional retirement benefits.

8220;As a result,iGATE is currently reviewing how this information impacts the agreement,8221; the spokesperson said.