Mid-sized software services firm MindTree will be making foray into China, having bagged a significant outsourcing contract from China’s biggest telecommunications equipment maker Huawei Technologies.
For the Bangalore-headquartered company, China marks new geography entry, besides already having presence in US and Europe. Confirming the development , Parthasarathy N S, CEO, testing & IMTS, MindTree, said, “We will be doing independent testing in the telecom space. This project has different phases and has potential to become large. The contract also allows us to move up the value chain as China has emerged a big growth market”.
However, he declined to name the customer as he is not allowed to do so. The contract deals with R&D and involves managing and supporting independent testing for Huawei’s different product line, where employees of MindTree will do the work at customer location, a person privy to the development said.
“Four companies were bidding for the contract, including an Indian firm and it was given to MindTree after complete evaluation of capabilities ”, the person said on conditions of anonymity. The company, which counts steel-maker Arcelor Mittal, Swedish truckmaker Volvo and insurer AIG among its top customers, will now be opening a subsidiary in China. Mr Parthasarathy said that they have sent techies from its India centres to China and will also look at option of hiring local talent there.
“China is an important market and we are evaluating to set up a development centre, but nothing will be decided till 12-18 months,” said Parthasarathy.
Economic Times
Showing posts with label AIG. Show all posts
Showing posts with label AIG. Show all posts
Friday, September 11, 2009
Thursday, March 26, 2009
Is bankrupt Nortel giving away $7.3 m as bonus?
A Canadian court has allowed eight senior executives at Nortel Networks Corp to share in the bonuses that the telecom equipment maker plans to pay out even as it fights for survival in bankruptcy protection.
Bankruptcy courts in both the US and Canada will allow Nortel Networks to pay as much as $7.3 million in incentive bonuses to the executives.
Nortel already had court approval to pay out a total of $45 million in bonuses for close to 1,000 executive and non-executive employees.
Friday's ruling by the Ontario Superior Court makes the eight senior executives, who do not include Chief Executive Mike Zafirovski, eligible to receive a share of this money, company spokesman Mohammed Nakhooda said.
In addition to the $45 million, Nortel has a separate quarterly bonus plan in place for "the vast majority of employees at all levels," he added.
Nortel -- North America's biggest maker of telephone gear -- had argued in an earlier court report that the bonuses were needed because "the commitment and retention of key employees will be essential to the execution of a restructuring of Nortel".
Executive compensation has become a hot-button issue with investors and politicians alike, particularly amid revelations that US insurance giant American International Group (AIG) paid out $165 million in bonuses after receiving $180 billion in government aid.
Some companies, including all of Canada's large banks, have introduced nonbinding shareholder votes on executive compensation in a bid to provide greater transparency and more accountability.
Toronto-based Nortel filed for bankruptcy protection in January, blaming the economic crisis for derailing a turnaround effort that began in 2005.
It had about $2.4 billion in cash when it sought protection and about $4.5 billion in long-term debt.
Nortel shares were unchanged at 10 Canadian cents on the Toronto Stock Exchange on Friday. In mid-2000, at the height of the company's success, they were worth more than C$1,100 each, adjusted for a stock consolidation that took place in 2006.
Agencies
Bankruptcy courts in both the US and Canada will allow Nortel Networks to pay as much as $7.3 million in incentive bonuses to the executives.
Nortel already had court approval to pay out a total of $45 million in bonuses for close to 1,000 executive and non-executive employees.
Friday's ruling by the Ontario Superior Court makes the eight senior executives, who do not include Chief Executive Mike Zafirovski, eligible to receive a share of this money, company spokesman Mohammed Nakhooda said.
In addition to the $45 million, Nortel has a separate quarterly bonus plan in place for "the vast majority of employees at all levels," he added.
Nortel -- North America's biggest maker of telephone gear -- had argued in an earlier court report that the bonuses were needed because "the commitment and retention of key employees will be essential to the execution of a restructuring of Nortel".
Executive compensation has become a hot-button issue with investors and politicians alike, particularly amid revelations that US insurance giant American International Group (AIG) paid out $165 million in bonuses after receiving $180 billion in government aid.
Some companies, including all of Canada's large banks, have introduced nonbinding shareholder votes on executive compensation in a bid to provide greater transparency and more accountability.
Toronto-based Nortel filed for bankruptcy protection in January, blaming the economic crisis for derailing a turnaround effort that began in 2005.
It had about $2.4 billion in cash when it sought protection and about $4.5 billion in long-term debt.
Nortel shares were unchanged at 10 Canadian cents on the Toronto Stock Exchange on Friday. In mid-2000, at the height of the company's success, they were worth more than C$1,100 each, adjusted for a stock consolidation that took place in 2006.
Agencies
Saturday, March 21, 2009
Has AIG bonus outrage gives employees a fear?
The bonuses paid to AIG executives have turned pillars of a Connecticut community into pariahs and have workers fearing for their safety.
An executive who feared retribution and spoke Friday on condition of anonymity says AIG workers in ritzy Fairfield County are ``very, very nervous'' about security.
AIG's financial products division is in nearby Wilton. Corporate officials have told employees to avoid sporting the company logo and to travel in pairs at night.
Activists plan to visit the homes of AIG executives Saturday in an attempt to deliver letters highlighting the economic problems of ordinary Americans.
Security companies say the financial crisis is creating brisk business in everything from bomb-sniffing dogs to bodyguards.
Agencies
An executive who feared retribution and spoke Friday on condition of anonymity says AIG workers in ritzy Fairfield County are ``very, very nervous'' about security.
AIG's financial products division is in nearby Wilton. Corporate officials have told employees to avoid sporting the company logo and to travel in pairs at night.
Activists plan to visit the homes of AIG executives Saturday in an attempt to deliver letters highlighting the economic problems of ordinary Americans.
Security companies say the financial crisis is creating brisk business in everything from bomb-sniffing dogs to bodyguards.
Agencies
Saturday, January 3, 2009
Will US Treasury mull Citi-style rescues to auto giants?
The US Treasury Department has given itself free rein in deciding the rescues of companies in the finance and auto sectors, according to two Treasury statements published this week.
The Treasury on Friday released guidelines for its Targeted Investment Program (TIP), part of emergency legislation enacted in early October to ease a credit crunch from the worst global financial meltdown since the Great Depression.
In the statement, the Treasury outlined the principles of the program under which it rescued ailing banking giant Citigroup on November 23.
Under TIP, the Treasury said it would determine the eligibility of participants and the allocation of resources "on a case-by-case basis."
"Treasury may invest in any financial instrument, including debt, equity, or warrants, that the secretary of the Treasury determines to be a troubled asset, after consultation with the chairman of the board of governors of the Federal Reserve System and notice to Congress," the department said.
Among the criteria in determining a financial firm's eligibility is "whether the institution is sufficiently important to the nation's financial and economic system that a loss of confidence in the firm's financial position could potentially cause major disruptions to credit markets ... or lead to similar losses of confidence or financial market stability that could materially weaken overall economic performance."
Wednesday, the Treasury Department posted on its website a description of its Automotive Industry Financing Program, justifying after the fact its decision to lend a combined 13.4 billion dollars in TARP funds to embattled automakers General Motors and Chrysler to stave off their imminent collapse.
"The objective of this program is to prevent a significant disruption of the American automotive industry that poses a systemic risk to financial market stability and will have a negative effect on the real economy of the United States," it said.
Similar to its approach to the finance industry, the Treasury said it would determine eligibility of participants in the program on a case-by-case basis.
The Treasury announced on December 19 a massive rescue of cash-strapped GM and Chrysler, facing a threat of imminent bankruptcy that could create economic chaos and throw millions out of work across the country.
Source: Agencies
The Treasury on Friday released guidelines for its Targeted Investment Program (TIP), part of emergency legislation enacted in early October to ease a credit crunch from the worst global financial meltdown since the Great Depression.
In the statement, the Treasury outlined the principles of the program under which it rescued ailing banking giant Citigroup on November 23.
Under TIP, the Treasury said it would determine the eligibility of participants and the allocation of resources "on a case-by-case basis."
"Treasury may invest in any financial instrument, including debt, equity, or warrants, that the secretary of the Treasury determines to be a troubled asset, after consultation with the chairman of the board of governors of the Federal Reserve System and notice to Congress," the department said.
Among the criteria in determining a financial firm's eligibility is "whether the institution is sufficiently important to the nation's financial and economic system that a loss of confidence in the firm's financial position could potentially cause major disruptions to credit markets ... or lead to similar losses of confidence or financial market stability that could materially weaken overall economic performance."
Wednesday, the Treasury Department posted on its website a description of its Automotive Industry Financing Program, justifying after the fact its decision to lend a combined 13.4 billion dollars in TARP funds to embattled automakers General Motors and Chrysler to stave off their imminent collapse.
"The objective of this program is to prevent a significant disruption of the American automotive industry that poses a systemic risk to financial market stability and will have a negative effect on the real economy of the United States," it said.
Similar to its approach to the finance industry, the Treasury said it would determine eligibility of participants in the program on a case-by-case basis.
The Treasury announced on December 19 a massive rescue of cash-strapped GM and Chrysler, facing a threat of imminent bankruptcy that could create economic chaos and throw millions out of work across the country.
Source: Agencies
Citigroup to limit top executives' pay, bonuses
The recipient of a $45 billion infusion from the US government, Citigroup Inc on Wednesday said it would place strict limits on management's compensation, including no severance for its top five executives.
Under pressure from lawmakers, Citigroup Chief Executive Vikram Pandit and Chairman Win Bischoff opted to forego their 2008 bonuses. The company's new executive pay limits also feature a clawback provision in which Citigroup can recoup executive pay ``that over time proves to be based on inaccurate financial or other information.''
The compensation restrictions come as the New York-based bank signed an agreement with the federal government to receive an additional $20 billion on top of the $25 billion it received in October. Restrictions on expenses, including the use of corporate aircraft and costs related to entertainment or holiday parties, also will be put in place.
Part of the $700 billion bailout program authorized by Congress, the capital infusions to Citigroup and dozens of other banks are the government's main tool for attempting to stabilize the financial services sector and spur lending between financial institutions and to customers.
Citi said it will issue $20 billion in preferred shares to the Treasury Department, and warrants to buy about 188.5 million shares of common stock at a strike price of $10.61 a share, according to a filing with the Securities and Exchange Commission.
In doing so, members of the company's senior leadership and executive committees will see pay cuts and limits on severance packages, according to a memo sent to Citigroup staff Wednesday.
In the memo, Pandit announced measures that will tie executive pay more closely to performance.
``We are fully committed to paying for high-performance people at all levels of the organization and at competitive rates, in the context of the company's overall financial results,'' Pandit said.
The most senior leaders will be affected the most, Citi said. Pandit said he and Bischoff thought it ``fair'' to forgo their bonuses ``in light of the challenges of the year and the need for compensation elsewhere in the organization,'' the memo said. Robert Rubin, a Citigroup adviser and former Treasury secretary, also will decline a bonus.
Pandit added that senior leadership committee members will see their bonuses ``substantially reduced,'' while executive committee members will have larger proportions of their bonuses in deferred compensation than other employees.
As a condition for receiving government money, lawmakers are making companies reel in bonuses. The congressional backlash and public outrage followed a series of high-profile cases involving Wall Street executives walking away with millions of dollars after their firms received taxpayer money.
Last month, American International Group Inc. said it would be limiting how much it pays its top executives, including granting a $1 salary for 2008 and 2009 to its CEO Edward Liddy.
New York-based AIG has received a roughly $150 billion rescue package from the federal government.
Shares of Citi fell 9 cents to $6.71 Wednesday. The company's stock shed more than three-fourths of its value in 2008.
Source: Agencies
Under pressure from lawmakers, Citigroup Chief Executive Vikram Pandit and Chairman Win Bischoff opted to forego their 2008 bonuses. The company's new executive pay limits also feature a clawback provision in which Citigroup can recoup executive pay ``that over time proves to be based on inaccurate financial or other information.''
The compensation restrictions come as the New York-based bank signed an agreement with the federal government to receive an additional $20 billion on top of the $25 billion it received in October. Restrictions on expenses, including the use of corporate aircraft and costs related to entertainment or holiday parties, also will be put in place.
Part of the $700 billion bailout program authorized by Congress, the capital infusions to Citigroup and dozens of other banks are the government's main tool for attempting to stabilize the financial services sector and spur lending between financial institutions and to customers.
Citi said it will issue $20 billion in preferred shares to the Treasury Department, and warrants to buy about 188.5 million shares of common stock at a strike price of $10.61 a share, according to a filing with the Securities and Exchange Commission.
In doing so, members of the company's senior leadership and executive committees will see pay cuts and limits on severance packages, according to a memo sent to Citigroup staff Wednesday.
In the memo, Pandit announced measures that will tie executive pay more closely to performance.
``We are fully committed to paying for high-performance people at all levels of the organization and at competitive rates, in the context of the company's overall financial results,'' Pandit said.
The most senior leaders will be affected the most, Citi said. Pandit said he and Bischoff thought it ``fair'' to forgo their bonuses ``in light of the challenges of the year and the need for compensation elsewhere in the organization,'' the memo said. Robert Rubin, a Citigroup adviser and former Treasury secretary, also will decline a bonus.
Pandit added that senior leadership committee members will see their bonuses ``substantially reduced,'' while executive committee members will have larger proportions of their bonuses in deferred compensation than other employees.
As a condition for receiving government money, lawmakers are making companies reel in bonuses. The congressional backlash and public outrage followed a series of high-profile cases involving Wall Street executives walking away with millions of dollars after their firms received taxpayer money.
Last month, American International Group Inc. said it would be limiting how much it pays its top executives, including granting a $1 salary for 2008 and 2009 to its CEO Edward Liddy.
New York-based AIG has received a roughly $150 billion rescue package from the federal government.
Shares of Citi fell 9 cents to $6.71 Wednesday. The company's stock shed more than three-fourths of its value in 2008.
Source: Agencies
Thursday, December 25, 2008
Where has the US bailout money gone?
The US Treasury Department said on Tuesday that it completed purchases of equity in 49 banks on Friday and 43 on Tuesday as part of a plan to stabilize the financial system and restore normal lending.
The 49 banks that received Treasury capital on Friday included 14 privately held institutions, marking the first government capital injections into private banks since the Treasury widened the reach of its capital purchase program.
Congress approved a $700 billion financial rescue program in early October, and the Treasury has said it would use $250 billion to bolster banks' capital position. Currently, the Treasury has authority to use only half of the overall $700 billion approved by Congress.
Following are details on what has been spent or pledged so far of the $350 billion the Treasury currently has authority to draw on:
What has been spent so far
==> $250 billion to buy senior preferred shares and warrants in banks and thrifts.
The latest equity purchases brought the total of investments made so far to $162 billion. A further $10 billion is approved for Merrill Lynch but has been deferred pending its merger with Bank of America.
==> $40 billion investment in troubled insurer American International Group, which has been completed.
==> $20 billion investment in Citigroup pledged as part of a bailout announced on November 23.
Global stimulus package I 2008: Year of financial crisis
Recession hits IT companies I India battles credit crisis I Credit crisis strikes Europe I Financial turmoil grips Europe
What has been spent so far
==> $13.4 billion to prop up General Motors Corp and Chrysler LLC. The Treasury has said GM could qualify for a further $4 billion in March, which would have to come from the final $350 billion tranche of the financial rescue fund.
==> $5 billion pledged to cover potential losses on a portfolio of Citigroup mortgage-related assets.
==> $20 billion pledged to cover potential losses for a Federal Reserve program aimed at improving consumer access to credit.
Source: Agencies
The 49 banks that received Treasury capital on Friday included 14 privately held institutions, marking the first government capital injections into private banks since the Treasury widened the reach of its capital purchase program.
Congress approved a $700 billion financial rescue program in early October, and the Treasury has said it would use $250 billion to bolster banks' capital position. Currently, the Treasury has authority to use only half of the overall $700 billion approved by Congress.
Following are details on what has been spent or pledged so far of the $350 billion the Treasury currently has authority to draw on:
What has been spent so far
==> $250 billion to buy senior preferred shares and warrants in banks and thrifts.
The latest equity purchases brought the total of investments made so far to $162 billion. A further $10 billion is approved for Merrill Lynch but has been deferred pending its merger with Bank of America.
==> $40 billion investment in troubled insurer American International Group, which has been completed.
==> $20 billion investment in Citigroup pledged as part of a bailout announced on November 23.
Global stimulus package I 2008: Year of financial crisis
Recession hits IT companies I India battles credit crisis I Credit crisis strikes Europe I Financial turmoil grips Europe
What has been spent so far
==> $13.4 billion to prop up General Motors Corp and Chrysler LLC. The Treasury has said GM could qualify for a further $4 billion in March, which would have to come from the final $350 billion tranche of the financial rescue fund.
==> $5 billion pledged to cover potential losses on a portfolio of Citigroup mortgage-related assets.
==> $20 billion pledged to cover potential losses for a Federal Reserve program aimed at improving consumer access to credit.
Source: Agencies
Wednesday, December 3, 2008
AIG to sell its Swiss unit
Troubled insurance giant American International Group will be selling its Swiss arm AIG Private Bank to an Abu Dhabi-based global investment firm.
In this regard, AIG has entered into an agreement with Aabar Investments PJSC (Aabar) to sell its subsidiary, the insurance firm said in a statement.
According to UK daily ‘The Telegraph’, the Swiss subsidiary would be sold for about $254 million.
The move is one of the major sale of asset by the battered AIG, after receiving a lifeline worth $153 billion from the Federal government.
The statement noted that under the new ownership, AIG Private Bank would become an independent financial institution, headquartered in Switzerland along with branches and representative offices in Hong Kong, Shanghai, Singapore and Dubai.
Source: Agencies
In this regard, AIG has entered into an agreement with Aabar Investments PJSC (Aabar) to sell its subsidiary, the insurance firm said in a statement.
According to UK daily ‘The Telegraph’, the Swiss subsidiary would be sold for about $254 million.
The move is one of the major sale of asset by the battered AIG, after receiving a lifeline worth $153 billion from the Federal government.
The statement noted that under the new ownership, AIG Private Bank would become an independent financial institution, headquartered in Switzerland along with branches and representative offices in Hong Kong, Shanghai, Singapore and Dubai.
Source: Agencies
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