Congress also highlighted the discrepancy in ICICI Bank’s ESOP policy domestically and in the US.
Congress on Tuesday sought further clarification from ICICI Bank and Madhabi Puri Buch, Chairperson of Securities and Exchange Board of India (Sebi), regarding the “retiral benefit” paid to her by the private sector lender.
In a press conference on Tuesday, the main opposition party highlighted that the payouts to her post-retirement exceeded her salary as the bank’s employee. Congress also raised concerns about the non-uniformity of the payments in terms of both amount and frequency. Congress leader Pawan Khera also requested ICICI Bank to pay the tax deducted at source (TDS) on the employee stock ownership plan (ESOP) on behalf of Buch.
“Even if we assume that the Rs 5.03 crore she received from ICICI 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?” he asked.
The Congress leader pointed out that the additional benefits given to Buch coincided with her appointment at Sebi.
“The average salary drawn by Buch from 2007 up until 2013-14 (right before her superannuation from ICICI) was Rs 1.3 crore. However, the so-called ‘retiral benefit’ given by ICICI to Buch from 2016-17 to 2020-21 averages around Rs 2.77 crore per annum. How can a person’s ‘retiral benefit’ be more than her salary as an employee?” Khera further questioned.
He also highlighted the discrepancy in ICICI Bank’s ESOP policy domestically and in the US.
“The only ESOP policy ICICI has publicly disclosed on its website is the one uploaded on the U.S. Securities and Exchange Commission (SEC) website, which clearly states that former employees can exercise their ESOPs within a maximum of three months following their voluntary termination,” he said.
ICICI Bank had refuted these claims a day earlier, stating that Buch was not paid any salary or granted any ESOPs after her retirement in October 2013.
In a stock exchange filing, the private sector lender said that all payments made to Buch after 2013 had accrued during her employment period. It further stated that the bank had not paid her anything other than “retiral” benefits arising from the grant of ESOPs.
“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 effective October 31, 2013,” ICICI Bank said in a statement.
The bank added that its employees had the option to exercise their ESOPs anytime up to a period of 10 years from the date of vesting.
First Published: Sep 03 2024 | 3:02 PM IST
