In a surprising turn of events, ICICI Bank has come forward to address the allegations made by the Congress party regarding the compensation of Madhabi Puri Buch, the current chairperson of the Securities and Exchange Board of India (SEBI). The bank’s statement aims to clear the air and put an end to the brewing controversy.
The story began when the Congress party raised eyebrows over what they claimed was an “office of profit” situation involving Ms. Buch. They alleged that she had received a substantial sum of Rs 16.8 crore from ICICI Bank as salary and other forms of compensation since joining SEBI in 2017.
However, ICICI Bank was quick to respond, firmly denying these claims. In a statement released today, the bank clarified that neither they nor any of their group companies have paid Ms. Buch any salary or granted her any Employee Stock Ownership Plans (ESOPs) following her retirement. The bank emphasized that the only payments made to her post-retirement were her rightful retiral benefits.
To provide context, ICICI Bank explained that Ms. Buch had opted for superannuation effective October 31, 2013. During her tenure with the ICICI Group, she received compensation in line with the bank’s applicable policies. This included her salary, retiral benefits, bonuses, and ESOPs – all standard components of an executive’s compensation package.
The bank further clarified that any payments made to Ms. Buch after her retirement were benefits that had accrued during her employment with the ICICI Group. These primarily consisted of ESOPs and retiral benefits, which are typically part of long-term compensation structures in the corporate world.
The Congress party, however, seems unconvinced by these explanations. Jairam Ramesh, a prominent Congress leader, has raised concerns about a potential conflict of interest involving the SEBI chairperson. He claimed that serious questions have been raised about this in the regulatory body’s Supreme Court-mandated investigations, suggesting that these concerns have been dismissed by the Government of India.
The opposition party has gone a step further, demanding that Prime Minister Narendra Modi, as the head of the appointments committee of the cabinet, provide clarity on Ms. Buch’s appointment. They argue that the total amount received by Ms. Buch from ICICI since joining SEBI in 2017 is significantly higher than her income from SEBI during the same period.
In light of these allegations, the Congress has called for immediate action. They’ve suggested that the Supreme Court should take note of these revelations and have demanded that Ms. Buch be removed from her position as SEBI chairperson.
This controversy highlights the complex nature of corporate compensation structures and the potential for misunderstanding when high-level executives transition to regulatory roles. It also underscores the importance of transparency in such appointments to maintain public trust in financial regulatory bodies.
As the situation unfolds, it remains to be seen how the government and relevant authorities will respond to these allegations and calls for action. The coming days may bring further clarifications or investigations, as all parties involved seek to address the concerns raised and maintain the integrity of India’s financial regulatory system.