Infosys includes arbitration clause in CEO’s agreement

Infosys includes arbitration clause in CEO’s agreement
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Bengaluru, Jul 20: Infosys will only take the arbitration route to resolve disputes, claims and grievances between its chief executive and the company, should such a situation arise in the future, according to its 20-F report filed with the US Securities and Exchange Commission.
CEO Salil Parekh’s employment contract mentions that in such circumstances, the problem shall be resolved by a confidential final, binding arbitration. This process will be pursuant to the Mumbai Centre for International Arbitration’s rules before a three-member panel.
The agreement says, “Executive and the company agree that the foregoing dispute resolution procedure shall be the exclusive means of resolving any dispute and that no other action will be brought by the executive or the company in any court or other forum. This agreement is a waiver of all rights to a civil court action.”
This is probably the first time that India’s second-largest software services exporter has introduced such a clause in its CEO’s employment contract. Former CEO Vishal Sikka’s agreement mentioned arbitration, but did not state that arbitration will be the exclusive means of dispute resolution.
The move appears to be an effort to prevent any public mud-slinging should there be a fallout between the board and Parekh. The Sikka tenure had seen months of bitter wrangle between board members and co-founder N R Narayana Murthy over alleged lapses in corporate governance. Infosys is currently in arbitration process with former chief financial officer Rajiv Bansal over withholding a part of his dues.