New Delhi: Phaneesh Murthy, the disgraced former chief executive of iGATE Corp, may lose as much as about Rs 84 crore ($15.09 million) in severance benefits after being sacked by the US-based firm for professional misconduct. Murthy, who was sacked on Tuesday for not disclosing a relationship with a subordinate, however, is entitled to a post termination benefit of $6,000 per month till he and his spouse reach the age of 65.
"Upon termination other than for cause, Murthy would receive a lump sum payment of twelve (12) months' severance at $1,000,000," iGATE had said in a filing before the US Securities and Exchange Commission (SEC) in March 2013. iGATE sacked Murthy for violating company policy on relationship with a colleague. Since his termination was for professional misconduct, he may end up losing the severance benefits.
Earlier in 2004, Murthy was forced to quit India's Infosys following a sexual harassment lawsuit against him. This was settled out of court. The filing further adds "Upon a change in control, Murthy's unvested stock units would immediately vest at a total value of $6,841,373.
"Upon a change in control, Murthy's unvested stock options would immediately vest at a total value of $7,245,707. Murthy is subject to nondisclosure, non-competition and non solicitation restrictions for a period of two (2) years after termination." On the post termination benefit for Murthy, iGATE in another SEC filing filed earlier this month had said: "On May 1, 2013, iGATE Technologies Inc. ...entered into Second Amendment Agreement...with Phaneesh Murthy to provide for post termination benefits of $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."
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