Indian IT giant Wipro has reportedly offered severance pay of Rs. 7 crore each to joint CEOs Girish Paranjpe and Suresh Vaswani, who had an unceremonious exit from the company last month.
Citing a letter sent to the investors, DNA newspaper reported that they will be given December remuneration and stock-based compensation they are entitled to as directors.
“Board of director of the company accepted the resignation of Girish Paranjpe and Suresh Vaswani joint CEOs (IT business) and directors as a board member with effect from January 31 and agreed to pay a severance pay of Rs. 7 crore, subject to application deductions, in addition to December remuneration and stock-based compensation that the director is entitled to till January 31,” the report quoted a Wipro note to shareholders as saying.
Though Wipro Technologies claimed that Girish Paranjape and Suresh Vaswani left the organization citing personal reasons, there were rumours that they were asked to leave the company. The announcement was made after the financial results for Q3 were announced in the third week of January 2011.
And the rumours assume greater significance when we read it along with the recent appointment of Rishad Hasham Premji, the eldest son of chairman Azim Premji, as chief strategy officer of the company’s infotech business, which sort of crystallized the company's succession plan.
While announcing the name of T K Kurien, who was earlier the chief executive of the company's eco-energy division, as the new head of the IT division of the company, Wipro had said that “there is a change in environment, there is a need for a simpler organization structure”.
According to a Wipro watchdog, who has been indirectly connected with a lot of executives in the company, “T K Kurien has been a close affiliate of Azim Premji (closer than the two CEOs) and taking him above the corporate hierarchy as the CEO was expected to come some day.
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