Infosys to cut variable pay?

By Aditya Mhatre at 3 February, 2009, 4:22 am

After putting around 5000 people on the watch list, Infosys has reportedly issued warned that it may cut employee bonuses and the variable pay components from the compensation packages. Usually the varibale pay is a component of every employees salary strcuture and in many cases (if not all) the largest portion of the salary. The variable pay is usually linked to a companies, units, and individual performance.

I dont exactly see it as being a bad sign since times are genuinely tough and companies do look at cutting the variable pay across the company rather than laying people off and continuing to pay the variable amount. Also, in these economic times, people would be happy to have a job rather than complain about the pay cut but it remains to be seen if infosys would cut the variable pay completely or just part of the total variable pay.

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Categories : Business