Infosys Limited said its General Counsel and Chief Compliance Officer David Kennedy left the company effective December 31. The company hasn’t given a reason for Kennedy’s departure.
Bangalore-based Infosys is India’s second biggest IT firm. It has nearly 200,000 employees. Revenues last year were $9.5 billion. It trades on the NYSE under the symbol INFY.
Infosys said in an SEC filing Saturday it entered into a separation agreement with Kennedy on December 23 that took effect at the end of the month.
The filing said “Kennedy will receive aggregate severance payments of $868,250 plus reimbursements for COBRA (insurance) continuation coverage over a period of 12 months.”
Kennedy had been based in Palo Alto, California. Under a compensation package that Infosys restructured in November, he would have earned $557,500 in fixed pay and $472,500 in variable pay.
Kennedy joined Infosys in 2014.
Eight senior executives have left the company since August 2014.
Former Chief Financial Officer Rajiv Bansal left in October 2015. He received a severance package worth about $2.7 million or two times his annual pay.
Following allegations that Bansal’s severance was excessive, Infosys said two internal investigations ordered by the board’s audit committee revealed no wrongdoing. The company said Bansal’s separation agreement provided for extended non-compete obligations.
CEO Vishal Sikka joined Infosys in 2014 and had appointed Kennedy as General Counsel and Chief Compliance Officer.
Infosys said in its SEC filing that Deputy General Counsel Gopi Krishnan will assume Kennedy’s duties as acting General Counsel during a search for a new GC.
The announcement didn’t say who will function as Chief Compliance Officer.
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Here’s the disclosure from the Form 6-K Infosys Limited filed with the SEC on December 31, 2016:
Infosys Limited (the “Company”) today announced that David Kennedy, its General Counsel and Chief Compliance Officer, and the Company have mutually agreed that Mr. Kennedy’s employment with the Company will cease on December 31, 2016. The Company has entered into a separation agreement with Mr. Kennedy (“Separation Agreement”) on December 23, 2016. Mr. Kennedy was entitled to revoke his acceptance of the Separation Agreement within seven (7) days of his signature of the agreement. Accordingly, December 31, 2016 is the effective date of the Separation Agreement. Under his Separation Agreement, and in line with the employment agreement that it supersedes, Mr. Kennedy will receive aggregate severance payments of USD 868,250 plus reimbursements for COBRA (insurance) continuation coverage over a period of twelve months. The severance payments shall be paid, less applicable withholdings, in accordance with the Company’s normal payroll practices, subject to the fulfillment of all the applicable conditions set forth in the Separation Agreement.
The Company’s Deputy General Counsel, Gopi Krishnan, will assume Mr. Kennedy’s duties as acting General Counsel as the Company conducts a search for a new General Counsel.
Richard L. Cassin is the publisher and editor of the FCPA Blog.