Caught in a maze with COVID-19, Cognizant rejigs prime brass pay

Cognizant has linked the compensation of all prime executives to its Share efficiency relative to these of direct opponents. The corporate has additionally scrapped its ‘days gross sales excellent’ metric, presumably in response to the Covid-19 pandemic.CEO Brian Humphries and different prime leaders obtain mounted parts like primary pay in addition to non-fixed ones like performance-based pay. Humphries earned a complete annual compensation of about $16.5 million in 2019.

Former CEO Francisco D’Souza, who stepped down from its board in February, earned round $29.2 million together with a $750,000 bonus and inventory awards gathered throughout his time with the corporate.

Earlier, solely Humphries’ performance-based fee was linked to a ‘relative’ Whole Shareholder Returns (TSRs) metric. In contrast to an absolute TSR metric, a relative TSR metric is measured in opposition to the S&P 500 Info Expertise Index and likewise in opposition to direct opponents corresponding to Infosys, TCS and Wipro.

This metric will now apply to all prime executives. This assigns prime govt extra direct accountability for income development, in what’s forecast to be a troublesome 12 months for enterprise hit by the Covid-19 pandemic.Inside performance-based pay, there are the 2 components – annual money incentive (ACI) and efficiency inventory models (PSUs). In each, the weightage given to general income of the corporate has been elevated.

The brand new TSR metric falls inside the PSU element. “TSR metric favoured by shareholders helps align administration and shareholder curiosity,” the corporate mentioned in its proxy assertion for 2020.

―Newpaper24