Infosys cuts off ties with Vishal Sikka

Settles severance package as agreed last year

 Infosys on Thursday decided to cut off all ties with former CEO and Managing Director Vishal Sikka and settle his severance package as agreed earlier.

The company has completed all resignation formalities as per Vishal Sikka’s employment contract as executed on April 1, 2016 and approved by the shareholders.

Accordingly, Sikka will receive 90 days base pay in lieu of notice of $246,575, a variable pay of $205,572 and company-paid COBRA (employee benefits) for 90 days. All equity awards outstanding as on separation date to the extent such awards are unvested will terminate on the date of separation, the company said in a statement.

All equity awards that vested during his employment with the company will remain as vested as per the terms of the equity plan and award agreement. A separation agreement reflecting this and other terms as a mutual release and non-disparagement obligation has been approved by the Board.

On August 18, Sikka resigned and was appointed as executive vice chairman of the board, but since the new role was not active, the company said it would now complete all resignation formalities of the first non co-founder CEO of the company.

Commenting on his appointment, Nilekani said: “I am happy to return to Infosys, now in the role of non-executive chairman, and look forward to working with my colleagues on the board and in executive management on the business opportunities we see before u s and delivering benefits to our clients, shareholders, employees and communities. I thank Vishal for hsi service as the CEO of Infosys over the last three years and wish him well in his future endeavours.”

Nilekani also stated that the Board will actively consider a broad based shareholder consultation process as a critical part of its overall engagement initiatives with all the stakeholders of the company that are being taken up on a priority basis.

The Infosys board will continue with its earlier stated plan to identify a permanent CEO and MD. U B Pravin Rao will continue as Interim CEO and MD.