 "Sebi chairperson Madhabi Puri Buch")
The Congress, on Tuesday, sought further clarification from ICICI Bank and Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (Sebi), regarding the “retiral benefits” paid to her by the private sector lender.
During a press conference, the main Opposition party pointed out that the payouts Puri Buch received after retirement exceeded her salary during her tenure at the bank. Moreover, Congress raised concerns about the non-uniformity in the amounts and frequency of these payments.
Congress leader Pawan Khera also asked why ICICI Bank covered the tax deducted at source for Puri Buch’s employee stock ownership plan (Esop).
“Even if we assume that the Rs 5.03 crore she received from ICICI Bank in 2014-2015, soon after her superannuation, was part of her ‘retiral benefit’ and that she received nothing in 2015-2016, why did this so-called ‘retiral benefit’ resume in 2016-2017 and continue until 2021?” Khera asked.
Experts said the option of when to vest and sell the shares lies with the Esop holder. The lack of income in some years could be due to Puri Buch deciding not to sell her Esop. Also, as share prices fluctuate, the actual realisation could differ each year even if the same number of shares are sold.
The Congress leader noted that these additional benefits coincided with Puri Buch’s appointment at Sebi.
More From This Section
 "psu, nifty, sensex, stock market")
 "Kitex Garments, clothes, textile")
 "share market stock market trading")
 "Zee")
 "Mankind pharma, Mankind medicines")
“The average salary Puri Buch earned from 2007 until 2013-14, right before her superannuation from ICICI Bank, was Rs 1.3 crore. However, the so-called ‘retiral benefit’ provided by the bank to her from 2016-17 to 2020-21 averaged Rs 2.77 crore per annum. How can a person’s ‘retiral benefit’ exceed their salary as an employee?” Khera further questioned.
ICICI Bank did not respond till the press time.
ICICI Bank did not respond till the press time.
Experts said it is common for top management to make more money through bonuses and Esops than their salary.
Khera also highlighted discrepancies in the bank’s Esop policy between its domestic and US operations.
“The only ESOP policy ICICI Bank has publicly disclosed is the one uploaded on the US Securities and Exchange Commission website. It clearly states that former employees can exercise their Esops within a maximum of three months following their voluntary termination,” Khera said.
A day earlier, ICICI Bank refuted these claims, stating that Puri Buch had not been paid any salary or granted Esops after her retirement in October 2013.
In a stock exchange filing, the private sector lender clarified that all payments made to Puri Buch after 2013 had accrued during her employment. The bank reiterated that Puri Buch had not received anything other than “retiral benefits” stemming from her Esop grants.
“ICICI Bank or its group companies have not paid any salary or granted any Esops to Madhabi Puri Buch after her retirement, other than her retiral benefits. It should be noted that she opted for superannuation with effect from October 31, 2013,” ICICI Bank said in a statement.
The bank also explained that its employees could exercise their Esops anytime within 10 years from the date of vesting.
Despite the controversy, shares of ICICI Bank rose 1.4 per cent to end at Rs 1,247.
 "FDI")
 "Haryana assembly elections 2019, voter, voting")
 "Nayab Singh Saini, Nayab Singh, Nayab, Haryana CM")
 "Rahul Gandhi, Rahul, Mallikarjun Kharge, Kharge, Mallikarjun")
 "Rahul Gandhi, Rahul, Mallikarjun Kharge, Kharge, Mallikarjun")
