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Payout to ex-CFO was erroneous: Infosys
Seeking to clear the air on corporate governance issues and the massive severance package to former CFO Rajiv Bansal, Infosys Chairman R Seshasayee assured there is “no such issue” and that the company is on “a transformation journey” from a founder-led entity to a professionally-managed one.
However, he admitted that the severance pay to Bansal was an “error of judgement” by the company Board due to a subjective element which guided the drawing up of such packages.
“In determining the severance package of Bansal, when he left the company in October 2015, there was a business judgement by the board and this amount was agreed to be paid. In retrospect, I have no hesitation in saying that this compensation would have been different, had the judgement, made in the circumstances, been different. We had some subjectivity in making this judgement,” Seshasayee said.
“It would serve everyone concerned much better, if that subjectivity element is taken away from severance packages,” the Chairman added.
On the review of severance packages globally conducted with the help of a consultant, Infosys has removed this “subjective element” from the severance package contracts being applied since 2016. “Business judgements can be wrong, perceptions can be different,” he said in defence of the decision to do away with the earlier practice that has led to the controversy over Bansal’s compensation package.