 "Congress Challenges ICICI Bank Over Controversial Retirement Benefits of SEBI Chairperson")
Congress party has raised concerns regarding the retirement benefits received by Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (Sebi), from ICICI Bank. During a press conference, Congress highlighted that the payments Buch received post-retirement were more than her regular salary while she was employed at the bank. They questioned the inconsistency in the payment amounts and urged ICICI to handle the tax deductions for Buch’s employee stock ownership plan (ESOP). ICICI Bank responded, stating that all payments to Buch were accrued during her employment and that she has not received any salary or ESOPs after her retirement in 2013. The controversy has drawn attention to the bank’s ESOP policy differences between India and the US.
Title: Congress Questions ICICI Bank on Retiral Benefits of Sebi Chairperson Madhabi Puri Buch
Last Updated: September 03, 2024 | 3:04 PM IST
In a recent press conference, the Congress party raised concerns about the retirement benefits received by Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (Sebi), from ICICI Bank. Congress leaders sought clarification on the substantial payouts Buch received after her retirement, which reportedly exceeded her previous salary at ICICI.
Leader Pawan Khera brought attention to the irregularities in these payments, stating that they surged from Rs 1.3 crore, her average annual salary from 2007 to 2014, to Rs 2.77 crore per year from 2016 to 2021. He questioned the justification behind such “retiral benefits,” especially since Buch had superannuated in October 2013, and asked why these benefits resumed several years later when she took up her position at Sebi.
Khera also pointed out discrepancies in ICICI Bank’s Employee Stock Ownership Plan (ESOP) policies between India and the United States, emphasizing the lack of transparency regarding how former employees exercise their stock options. He urged ICICI Bank to cover the tax deducted for Buch’s ESOPs.
In response, ICICI Bank refuted these allegations, insisting that Buch received no salary or ESOPs post-retirement. The bank emphasized that all payments made after her retirement were indeed part of the benefits granted during her employment, clarifying that employees can exercise their ESOPs up to ten years from the vesting date.
As this story continues to unfold, it raises significant questions about corporate governance and transparency in executive compensation practices.
Tags: ICICI Bank, Madhabi Puri Buch, Congress, Sebi, ESOP, Corporate Governance, Retirement Benefits
What is the issue regarding ICICI Bank’s retiral payouts?
Cong is asking for more information about how ICICI Bank handles retirement payouts for its employees.
Who is Madhabi Buch?
Madhabi Buch is the current Managing Director and CEO of ICICI Securities, which is part of the ICICI Bank group.
Why is the Congress party concerned about this issue?
The Congress party wants to ensure that employees receive fair and transparent retirement benefits, and they are looking for clarity from the bank on its policies.
What did the Congress party request from ICICI Bank?
They want ICICI Bank to explain its process and terms related to retiral payouts for better understanding among employees.
How might this impact ICICI Bank?
If the Congress party raises concerns, it could put pressure on ICICI Bank to improve its policies and communication regarding employee benefits.
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