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Cognizant rewards top hierarchy with 189 percent bonus
By siliconindia
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Monday, 28 February 2011, 23:54 IST |
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Chennai: Cognizant, the IT service provider firm rewards the top level with 189 percent bonus. The company which is expected to overtake its rival Wipro in their quartet four results has made an announcement to reward their top five executives with hefty annual cash incentive bonuses which is nearly 90 percent above the bonus given in 2010.
The outsourcing giant, Cognizant has also increased the base salaries of these five executives for calendar year 2011. President and CEO Francisco D'Souza get a bonus of $816,968 and his base salary has been revised to $566,500 for 2011 from $539,100 in 2010. Chief Financial officer Gordon Coburn will enjoy the bonus of $735,286 and a salary increase of $510, 00, a rise of 95% compared to the previous year.
Ramakrishnan Chandrasekaran, President and Managing Director, Global Delivery will be given a bonus of $255,350 and his base salary would now be $1,77,000 from $1,68,500 last year. Rajeev Mehta, Chief Operating Officer, Global Client Services gets a bonus of $580,000 up from $310,000 last year. Steven Schwartz, Senior Vice President, General Counsel and Secretary receives a bonus amount of $530,000 which goes up from $280,000 in 2010.
Chandrasekaran's bonus will be paid in Indian rupees at the exchange rate of 48.58 to a dollar as on December 31, 2008. The panel fixed the exchange rate to eliminate the effect of currency fluctuation on compensation.
The bonus was expected in line of expectations since Cognizant announced the 40 percent rise in revenue at $4.59 billion in 2010. The company employs three-fourth of its employees in India. Around the same period the company's supposedly biggest rivals Infosys, TCS and Wipro reported 17-25 percent growth. Cognizant made its presence realized in 2010 by beating two giants in terms of adding revenue $1.28 billion while Infosys added $1.11 billion and Wipro managed to add $716 million according to Edelweiss. TCS added $1.54 billion ahead of Cognizant.
For 2010, the company registered a profit of $733.5 million, or $2.37 per diluted share, compared to $535 million, or $1.78 per diluted share, for 2009. Revenue for 2010 increased to $4.59 billion, up 40.1% from $3.28 billion in 2009.