The Hindu Business Line : Infosys freezes wage hikes, hiring

Bangalore, April 15 Sensing a tough year ahead, Infosys Technologies has decided to freeze wage hikes and hiring for fiscal 2010 and maintained that it would honour all campus offers made last year.

“Employees will not get salary hike or promotions this fiscal. At the same time, there will be no salary cuts,” said Mr Mohandas Pai, head of HR and board member of Infosys.

Infosys has maintained the salary structure for the employees that includes a variable pay component which ranges from 15 per cent of the compensation package for junior employees to about 50 per cent of the compensation for the board members.

“The board members have taken a steep cut and received only 58 per cent of the variable pay for the year,” Mr Pai said. Senior employees got 65-75 per cent of the variable component for the year, while junior employees received about 85 per cent of the variable pay. Mr Pai said Infosys would add some 18,000 employees for the year ahead including 16,000 freshers for whom the offer letters have been issued last year. (The company made 20,000 campus offers and assumes an 80 per cent acceptance – hence 16,000 offers.) It would add 2,000 laterals including some 1,000 laterals overseas.

“We will absorb all the 18,000 people to whom offer letters were given (including lateral hires) last time despite staggering their joining dates over the fiscal,” Mr Pai said.

Further, Mr Pai said the company has devised a strategy to utilise the current bench of 5,000 engineers by deploying them on internal projects and develop intellectual property. About 8,000 trainees for whom the training period has been extended are expected to join the system over the next few quarters.

Top paid employees

Mr B.G. Srinivas, head of European operations and an executive council member, was the highest paid employee at Infosys in the year-ended March 2009, earning about Rs 4.67 crore, up from Rs 3.07 crore in the previous year. The US-based Mr Ashok Vemuri, head of BFSI and capital markets, took home a total compensation of Rs 4.04 crore (Rs 2.81 crore last year).

Among the board members, Mr Mohandas Pai earned the highest compensation package of Rs 2.59 crore (Rs 1.80 crore), followed by CFO Mr Balakrishnan at Rs 2.36 crore (Rs 0.63 crore).

The CEO and MD, Mr S. Gopalakrishnan’s total compensation package stood at Rs 92 lakh (Rs 81 lakh), while co-chairman Mr Nandan Nilekani earned Rs 91 lakh (Rs 82 lakh). COO Mr S.D. Shibulal’s Rs 87 lakh (Rs 78 lakh) was the lowest among key management personnel.

Mr N.R. Narayana Murthy, Non-executive Chairman and Chief Mentor, took home a commission of Rs 63 lakh (Rs 50 lakh). Prof Marti. G.Subramanyam was the highest paid non-Wholetime Director at Rs 96 lakh (Rs 59 lakh).

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