Infosys cuts variable pay after weak first quarterly results

Asia’s second-largest software exporter Infosys has slashed quantum of variable payouts for employees after the Bengaluru-based firm posted results that fell short of expectations and was forced to trim its full-year revenue forecast.

In a quarter that Infosys saw high attrition rates of about 21%, the company is handing out 75% of variable pay to employees, down from the 90% payouts in the March quarter.

The company, however, is taking steps to curb attrition. Despite a weak quarter, Infosys is handing out a higher number of promotions this quarter and promoting about 2,500 employees.

In the March quarter, it promoted 2,147 employees. Infosys also relaunched its employee stock option plan (Esops) after a gap of over a decade and said it would reward 7,500 junior to midlevel employees with ESOPs.

“We are rewarding about 7,500 of our employees from junior to middle-level management with restricted stock options and we will extend it to the middle management to senior leaders and title holders subsequently,” Infosys chief operating officer UB Pravin Rao said.

Global human resources chief Krishnamurthy Shankar told ET that attrition rates in the quarter were not overly surprising and were seasonal in nature, as new hires typically leave for higher studies.

 

SOURCE: PTI