Phaneesh to lose Rs 84 cr in severance benefits

US-based outsourcing firm iGate on Wednesday said the company's 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: "Murthy was terminated for cause, for a violation of iGate 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, 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."

On Tuesday, iGate sacked Murthy for violating company policy by hiding a relationship with a subordinate and for alleged sexual harassment.