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Cognizant dispenses heavy bonus during recession
By siliconindia
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Thursday, 12 March 2009, 21:07 IST |
41 Comments
Chennai: Bucking the current trend of pay cuts and job cuts, India's software giant Cognizant is dispensing handsome bonuses to its employees. The company will extend full variable pay component this year to its workforce.
"It's a relief to be receiving this bit of news in the current scenario. There has been a lot of talk in the industry that pay cheques will be revised downwards, we had also heard about lay-offs," an employee told Times Of India. The variable pay amounts to 20-35 percent of the gross payment of the employees and in some cases it can range over 50 percent. The company confirmed the move, while declining to reveal any further details maintaining that compensation is confidential information. In the previous year, the firm had paid between 70 and 100 percent and in some cases employees exceeding the highest expectations were paid even more than 100 percent of their promised variable pay.
As per some of the employees, the amount is the full component of the variable pay, which varies according to seniority. Among top five IT companies in India, Cognizant ranks fourth both in terms of revenues ($2.8 billion) and headcount with nearly 62,000 employees.
The move has set positive sparks in the current economic situation when tech giants such as Infosys and TCS as well as tier-II players like Hexaware who have resorted to paycuts and job slashing to avert the recession. TCS will review the variable pay component, while Infosys is resorting to lower the discretionary pay of the senior management level.
