Nasdaq-listed iGATE Corp will annually pay its new Chief Executive Officer Ashok Vemuri a salary of $1.3 million and a cash bonus of up to $1 million.
“Vemuri will be employed initially for a five-year term commencing on September 16, with an initial annual base salary of $1.3 million and an annual cash bonus ranging between 0 per cent and 200 per cent of the target bonus of $500,000,” the company said in a filing to the US Securities and Exchange Commission (SEC).
He will also be eligible for 1.5 lakh stock options in iGATE that could be exercised at a fair market value ‘as defined in the plan on the effective date and a four-year vesting schedule.’
Vemuri, who was Infosys’ former head of Americas business was the second-highest paid official of the company, according to its annual report for 2012-13. He earned $904,378, including bonus and other compensation benefits at the country’s third largest software exporter. Vemuri was bought on board iGATE after former CEO Phaneesh Murthy was fired for failing to report the relationship with a subordinate employee
In case of Vemuri’s services from iGATE being terminated, a non-compete clause of 12 months has been factored in his employment contract, subject to exceptions.
Multi-year deal
Separately, iGATE announced today that it has bagged a multi-year deal to provide testing services to the IT applications portfolio of Associated Banc-Corp. iGATE will also setup a testing centre of excellence as part of the deal, it said in a press statement. Financial details of the development were not disclosed.
adith.charlie@thehindu.co.in