Satyam to scrap variable pay for all employees this fiscal
Satyam Computer Services, the beleaguered IT firm that was acquired by Tech Mahindra, has decided to scrap variable pay for all employees this fiscal. "We have decided not to give variable play to employees until further notice," said a person privy to the development.
The company has paid variable pay component for last fiscal, despite the economic downturn. A cut in variable pay would mean a lower take home pay for 48,000 employees this fiscal too. Variable pay constitutes a part of the salary package and is subject to the company and employee's performance.
The variable component for Satyam employees is 10% at the entry level, 20% at the middle level and 30% at the senior management level. Half of the variable pay is a guaranteed payment. The other half is linked to three parameters including the performance of the company, the individual and the business unit.
Source: The Economic Times (
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