Infosys BPM to pay reduced 60% of average variable pay

Infosys BPM (business process management), the BPM arm of Infosys, has reduced the variable pay of employees by 40% in the second quarter of this fiscal. For some bands of employees (J4, J5 and J6), the average variable payout for Q2 is at 60%.

In its mail to employees, the company said performance bonus forms an integral part of the compensation philosophy at Infosys BPM and that they reward an employee’s individual performance and contribution through the quarterly performance bonus.

In August, Infosys had deducted 30% of average variable pay for the June quarter on margin pressure. In its email to employees, the company had said, “The average bonus payout for Q1FY23 is 70% at an organisation level and your final individual payment will be governed by your unit/department guidelines.” The Nascent Information Technology Employees Senate (NITES), which has been raising the concerns of unethical pay cuts of employees, has said that the company at their will is reducing the variable pay component of employees without giving any reasonable cause.

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“On one side the employees are struggling with inflation and on the other side Infosys is increasing deductions in variable pay,” Harpeet Singh Saluja, president, of NITES said. Meanwhile, Infosys announced that it will seek shareholders’ nod for its Rs 9,300 crore share buyback between November 3 and December 2 through postal ballot.

In a regulatory filing, it said, “The company has engaged the services of National Securities Depository Limited for the purpose of providing e-voting facility to all its members. The remote e-voting shall commence from Thursday and shall end on Friday.”

The company announced Rs 9,300 crore share buyback plan during the second quarter earnings conference, and it has set the maximum price at Rs 1,850, which is a premium of 30%.  “Subject to the market price of the Equity Shares being equal to the Maximum Buyback Price, the indicative maximum number of Equity Shares bought back would be 50,270,270 Equity Shares, comprising approximately 1.19% of the paid-up capital of the Company as of September 30, 2022,” Infosys had said.

Source: The New Indian Express

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