Jerry Rao gets Rs 23 cr bonus

Jaithirth 'Jerry' Rao is understood to have been offered 'golden handcuffs' of around $5 million (Rs 23 crore) by global IT giant EDS to stay on for two years at EDS-MphasiS.

Industry sources say this retention bonus of $5 million will be split into two halves and will flow into Rao's pockets after the end of the first and the second year, respectively.

In addition, it is understood that around 170 top management personnel at MphasiS are getting a retention bonus by EDS "" the bill amounting to around $5 million. A spokesperson for EDS, however, said the company does not make such details public. Rao was not personally available for comment.

Rao seems to have hit a jackpot with the EDS deal. During the open offer, he tendered part of his holding in the company for Rs 24 crore and then subsequently sold another part of his shares in the open market which fetched him around Rs 24 crore.

From these transactions, he got Rs 48 crore, and adding another Rs 23 crore from the golden handcuffs, Rao, in a period of three years, would have made a total of a little over Rs 70 crore. He currently holds 2.45 per cent stake in the company.

EDS had acquired majority control of MphasiS-BFL for $380 million (around Rs 1,700 crore) last June and is trying to build up critical mass in the country.