CTS announces up to 200% bonuses for Top Performers
By Muruganandham Krishnan on 13 March, 2010, 7:28 pm
Cognizant has announced bonuses for its work force globally for the calendar year 2009, seeking to reward employees after it posted strong growth in a difficult year. The Nasdaq-listed company, which competes with TCS, Infosys and Wipro, confirmed the bonus payout but yet to announce the bonus figures to media.
Reliable sources informed that top performers got as much as 200% bonus, a number which is incredible in the recent past years, when IT companies were burning out due to economic slow down. It also seems that most of the employees got the bonuses between 150% to 200%. Cognizant’s performance-linked incentives are tied to the variable part of the compensation, which is about 10-15 percent at junior levels and goes to as high as 40 percent of the total compensation at senior levels.
The company had earlier sent out e-mails to it’s over 75,000 employees announcing the performance-linked incentives. The e-mail read, “Year 2009 proved to be pivotal in Cognizant’s growth story as we delivered exceptional performance despite a challenging environment. By investing aggressively in our business and our people, we stood even closer to our customers, and partnered with them to augment their efficiency and effectiveness, making their businesses stronger. This would not have been possible without the focus, passion and dedication of our associates.”
For 2009, Cognizant posted revenue growth of 16.4% (organic and inorganic growth), when most of its off shoring peers in India saw negative growth. It has guided to grow revenues by 20% to $3.935 billion in 2010. News of imminent bonuses has given Cognizant employees a reason to cheer but the question looming large is whether the over two million IT/BPO employees in India can take this as an indicator and expect something similar.
Hope the competitors of CTS like Infosys, TCS & Wipro also announce the bonuses shortly.
