Mumbai: Days after Infosys gave a clean chit to the arbitrary outgoing packages paid to some of its executives, it has been reported that the IT major has standardised severance packages.
According to a company spokesperson, the company has revised the contracts without clarifying the severance clause, reported TOI.
The new norms will see senior vice-presidents and executive vice-presidents take home four months’ fixed salary as severance pay, said the report.
Severance package in Infosys became an issue when it was revealed that former CFO Rajiv Bansal and former general counsel David Kennedy were granted Rs 17 crore and Rs 5.9 crore, respectively as payouts. It was reported that while Kennedy’s contract mentioned a pay of seven to eight months’ fixed salary, Bansal’s payout was way beyond what his contract allowed and was termed “arbitrary”.
Founder Narayanan Murthy had raised questions repeatedly regarding the same, which were ruled out during former CEO Vishal Sikka’s tenure.
Under Nilekani however, the company once again, cleared any charges with regard to the severance packages paid to Bansal and Kennedy.
The decision to standardise the severance packages will negate any scope of individual negotiations and therefore any controversy from now on. “It's standard set of employment contracts for all senior management and executives,"said Infosys group HR head Krishnamurthy Shankar. He however did not say anything specifically on the severance package.
He added that Infosys has rationalised the employment contracts in the last six months.
Severance pay is generally given to those executives, who are asked to leave the company or if some changes are made that impact executives.
