Not only employees, CEOs of Genpact, Infosys, etc are also taking home fewer bonuses. Here’s why

The Indian IT sector is struggling for growth and witnessing few profits, as a result of which the chief executives of many companies took home less bonuses.

The CEOs of companies such as Genpact, Infosys and even Cognizant saw performance bonuses shrink.

For instance, Genpact CEO NV Tyagarajan was paid $700,000 out of a 2016 target bonus of $1.12 million.

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"Tyagarajan achieved lower-than target performance on both the financial and strategic metrics included in his scorecard. The 48% decrease in Tyagarajan's 2016 bonus compared to his 2015 bonus reflects a decrease in the Company multiplier under the bonus plan from 96% in 2015 to 83% in 2016, the impact of lower-than-target Company performance on achievement of the financial metrics in his scorecard, and lower-than-target performance on the strategic metrics in his scorecard,” stated Genpact.

In 2016, Genpact's revenue went up by 6% to $2.57 billion in constant currency terms and the company said that it was no longer guaranteed a minimum amount of business from its former parent General Electric.

Cognizant CEO Francisco D'Souza's compensation went down by one-third in 2016. He took home $8.26 million down from close to $12 million in 2015.

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"For 2017 awards: Revenue reduced to 50% weighting for PSUs to reflect increased Company focus on non-GAAP Operating Margin. Non-GAAP EPS increased to 50% weighting for PSUs; target accounts for $1.5 billion accelerated share repurchase program initiated in March 2017,” Cognizant said in its proxy filing.

Infosys CEO Vishal Sikka was issued fewer than a fifth of the stock options he was eligible for as part of his compensation.

"If the targets were not met, as in the case of Vishal, the compensation came down this year as compared to last year. We just acted on the promise we made to shareholders,” Infosys chairman R Seshasayee told ET.

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