India | Infosys to cut in pay after salary freeze

Infosys will tell restive employees angry about a salary freeze that it will make steep cuts to their variable pay for the January-March quarter, risking an exodus of talent to greener pastures.

India’s second-largest software exporter, which missed its revenue guidance for the final quarter, has decided that most of its employees will get only 70% of their variable pay, a senior company executive said. The blow will fall harder on the 300 top executives, the so-called ‘title holders’ who will be asked to take a 70% cut in their variable salary. For the October-December 2011 quarter, the ‘title holders’ had to forego 50% of their variable pay.

Infosys, which employs nearly 1.5 lakh staff, has been facing pressure from investors and analysts who believe that the once-formidable company has been underperforming for more than a year. On Friday, when it announced its earnings, Infosys said there would be no wage increase for the time being as it tries to control costs.

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Read More @ Infosys staff to get steep cut in variable pay post salary freeze – The Economic Times.