Infosys has cut the variable pay for employees, with the cuts being deeper at the higher levels. For senior executives, the variable pay, which constitutes nearly 50 per cent of their total compensation, has been slashed by 58 per cent.
“Some boardroom executives have even taken a 70 per cent to 85 per cent variable pay cut,” said T V Mohandas Pai, head of HR in Infosys. The company's hiring has been steadily declining.
In Q4, it added (net) only 1,772 people, compared to 2,772 in Q3, and 2,586 in Q4 of 2007-08. In the whole of 2008-09, it hired (net) 13,663 people, down from 18,946 in the year before.
The company maintained that it will not seek to trim its payroll by laying off software professionals. There will, however, be no salary hike this year, as the company plans to keep its operational costs under control.
“We are not laying off anybody and there are no such plans,” said Infosys Technologies HR-director, TV Mohandas Pai.
Infosys plans to hire 18,000 professionals in the current fiscal, including almost 16,000 fresh graduates and experienced hires. It will also recruit around 1,000 non-Indians outside the country to increase the number of foreign professionals in its workforce.
Times News Network
Showing posts with label senior executives. Show all posts
Showing posts with label senior executives. Show all posts
Friday, April 17, 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
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