Software major Infosys had settled the severance pact with its former Chief Financial Officer (CFO) Rajiv Bansal who quit the company in October 2015, said the IT major on Wednesday.
"The settlement application has been submitted to the market regulator - Securities Exchange Board of India (SEBI) on former CFO's severance pact made in October 2015," said the company in a regulatory filing on the BSE.
The settlement application process is based on an undertaking that the company will "neither admit or deny finding of fact or conclusion of law".
"Through the settlement process, the company wants to resolve allegations relating to company not seeking prior nod from its Nomination & Remuneration Committee and the Audit Committee for the severance package," reiterated the filing.
The company, however, did not disclose the severance agreement, cessation of payments to Bansal and initiation of arbitration.
"The company will provide update on conclusion of settlement process," noted the filing.
The company's co-founders, especially its former Chairman N.R. Narayana Murthy objected to the "unusual and unprecedented severance payment agreement of 1,000 per cent" approved by the previous Board to Bansal.
Accusing the previous board of poor governance on October 24, Murthy said in a statement that it (previous Board) also did not disclose the information on the pact proactively and much earlier.
Murthy's public spat with some of the previous Board members led to the dramatic exit of its first non-promoter Chief Executive Vishal Sikka on August 18 three years after he joined and the return of another co-founder Nandan N. Nilekani to the Board as non-executive Chairman on in August.
On December 2, Infosys hired Salil S Parekh of global IT outsourcing firm Capgemeni as its new CEO and Managing Director from January 2.