Infosys, Genpact, PepsiCo, ICICI to pay bonuses
Monday, 08 March 2010, 22:46 IST   |    27 Comments
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Infosys, Genpact, PepsiCo, ICICI to pay bonuses
New Delhi: Looking to retain and encourage the key talent, companies such as Infosys, Genpact, EXL Services, Maruti Suzuki, Fiat, PepsiCo India, Dabur and ICICI Bank will soon start paying bonuses, with many of them dishing out compensation up to 150 percent of the variable pay. Companies in sectors as diverse as IT and banking and financial services are bracing to give bonuses buoyed by the prospect of promising days ahead, reports Mahima Puri and Pramugdha Mamgain from the Economic Times. For sectors such as BPO, automobiles and FMCG, the payouts will be a barometer to check their return to giddy days after the crushing blows of last year. For instance, beverage and food maker PepsiCo India, which posted its highest volume growth in a decade last year with the beverage business growing over 32 percent, is expected to pay about Rs 10 lakh as bonus to a top executive earning up to Rs 50 lakh annually. Genpact's rival, EXL Services, is likely to hike bonuses by nearly 8 percent this year. An EXL manager, whose basic salary is about Rs 6 lakh, may be rewarded with Rs 2 lakh this year. EXL global head for human resources Amitabh Hajela said this year is certainly better in terms of overall performance. The initial optimism with which the IT and ITeS industry began the year is fast wearing thin as U.S. protectionism has emerged as a key issue and overseas demand is yet to pick up. "This year has been more conservative in terms of the way we have grown and the bonuses are likely to be on a lower side," said Genpact Senior Vice-Chairman of HR Piyush Mehta. Still, IT major Infosys Technologies may match the December bonuses of up to 100 percent of the variable pay as the company is expecting good results in the fourth quarter, said a person privy to the company?s plan. Infosys Human Resources Group Head Nandita Gurjar said bonuses will be given in April, though she refused to divulge details. "The average bonus payout in the fourth quarter of last year was 50% and this year is certainly better." The banking and financial services sector, where bonus payouts are a time-honoured culture, could be the best paymasters this year. ICICI Bank, which resisted doling out bonuses in the past two years due to the slowdown, is expected to return to its generous ways this year. Also, automobile companies such as Maruti Suzuki and Fiat, whose sales are humming again, are deciding on the extent of bonus payouts this year. "Based on the company's annual performance and the individual's performance, we pay bonuses in May every year," said Maruti Suzuki HR Head SY Siddiqui. A Maruti assistant manager whose variable pay is Rs 80,000 could get up to Rs 85,000 as total payout. Mumbai-based drugmaker Lupin Pharmaceuticals recently paid up to 20 percent bonus to its top performers. A senior executive earning Rs 50 lakh a year got a bonus of about Rs 7.5 lakh.