Capgemini seeks nod for `excess' pay to executive

BENGALURU: French IT services major Capgemini's India arm was faced with the unusual prospect of asking a top executive of a company it acquired, Igate, to pay back some of the remuneration granted to him ­ because the quantum violated provisions of the Companies Act -or seek shareholder and government sanction to allow him to keep it. It decided to go with the second option as it felt it was a contractual obligation.

Capgemini Technology Services India is seeking shareholder approval for the remuneration offered in 2015-16 to Sujit Sircar, who was CFO of Igate and now COO of Capgemini's North America application services. Capgemini acquired Igate in mid-2015, and given the differences in the way Capgemini and Igate remunerated its employees, Sircar's compensation in 201516 turned out to be in excess of 5% of the net profit of what the Indian firm posted in that financial year. Under the Companies Act, an execu tive's remuneration cannot exceed 5% of net profit.

The company paid a remuneration of nearly $5 million (Rs 29.08 crore) to Sircar in 2015-16. The board has ratified the remuneration. Documents filed with the Registrar of Companies says the company has made an application before the central government seeking its approval too.