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This is an archive article published on May 23, 2013
Phaneesh to lose severance benefits
US-based outsourcing firm iGate on Wednesday said the companys sacked chief executive Phaneesh Murthy will not be paid the contractual severance benefit of around 15.09 million about Rs 84 crore as he was dismissed from service for professional misconduct.
Written by Press Trust Of India
New Delhi | May 23, 2013 03:05 AM IST
2 min read
2 min read
US-based outsourcing firm iGate on Wednesday said the companys sacked chief executive Phaneesh Murthy will not be paid the contractual severance benefit of around 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 6,000 per month as post-termination benefit.
An iGate spokesperson said: Mr Murthy was terminated for cause,for a violation of iGATEs 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.
In a filing to the US Securities and Exchange Commission SEC in March,iGate had said,Upon termination other than for cause,Murthy would receive a lump sum payment of twelve months severance at 1,000,000.
The filing had further added: Upon a change in control,Murthys unvested stock units would immediately vest at a total value of 6,841,373. Upon a change in control,Murthys unvested stock options would immediately vest at a total value of 7,245,707.
On Tuesday,iGate sacked Murthy for violating company policy by hiding a relationship with a subordinate and for alleged sexual harassment.
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