Cipla Medpro tells court that millions in bonuses were obtained dishonestly and not disclosed GENERIC drug manufacturer Cipla Medpro has defended itself against a R30m lawsuit brought against it by former CEO Jerome Smith, who is claiming R11.6m in bonuses and R18.5m in outstanding salary after his contract was "unlawfully repudiated" last year.In papers filed in the Cape Town Labour Court last week, Cipla Medpro put its side of the dispute between Mr Smith and the company’s board, which centres on bonuses paid to him and former chief financial officer Chris Aucamp in 2010 and 2011.At issue are amounts of R3.6m paid to Mr Smith, and R2.4m paid to Mr Aucamp.Cipla Medpro said the bonuses were paid without the requisite authorisation of the board or recommendation of the company’s remuneration committee."These payments were obtained unlawfully and dishonestly and were not disclosed by the applicant (Mr Smith) at the appropriate time. When asked for a response, he had given a dishonest ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.