DXC execs to investors: It's say-on-pay time. Give us a bump, would you?

DXC Technologies, which laid off more than 20,000 staff in its first year of life, is trying to convince more investors to put their money where the biggest mouths are when exec compensation is voted for next month. Last August, just 58 per cent of DXC shareholders voted in favour of the named-executive officer (NEOs) …

[Pascal Monett]

Cloud is changing the market landscape

What I gather from this article is that massive service providers (aka consulting companies) are being subject to a sea change in their very livelyhood. Big customers are less inclined to sign big contracts, and smaller customers are going to the fluffy failures of The Cloud.

This can only be temporary, though. The Cloud is far from perfect in itself, and people are starting to wake up (albeit slowly) to the fact that their data is no safer there and they need measures in place when the fluff grows a hole and their data disappears.

It will certainly take a long time before people (and companies) learn how to manage their cloud data properly, but until they do, there is room for consultants and service providers to help them get there.

It's just that the service providers need to adapt to that landscape as well.

Apparently, that adaptation is going to be painful.

[Anonymous Coward]

Flaming torches and pitchforks

Looks like the board is trying to head off shareholder revolt before they notice that revenues decline 5% every year since Lawrie took over CSC.

Sure, better margins but a better percentage on 5% less is still less money and they are being rewarded for that failure to grow the business.

Perhaps the shareholders should read this:

https://www.psychologytoday.com/au/blog/the-homework-myth/201609/the-bonus-effect

[Anonymous Coward]

Well you can't buy morale

I know a lot of DXC guys and even spend a few days a week at a customer site where some DXC staff are based.

They have lost a lot of the people they should have kept and not all of them were made redundant, and this means they have retained some people who are happy just to have somewhere other then the library to go to everyday, I'm surprised (and some of the DXC guys I know) that they haven't lost more business.

[IamStillIan]

Re: Well you can't buy morale

I can second that from folks I've interviewed. I've had numerous DXC ppl applying for jobs and there typical reason for wanting to leave their existing job is (subject to business lingo gumph) "I need to get off the sinking ship".

[mr_souter_Working]

What morale?

people being let go regularly, contractors not having contracts renewed (no demand for their skills is the reason given - which is a surprise to everyone that needs those skills).

no pay rises or bonuses since we became DXC (maybe there will be some money this month - not holding my breath)

nice to know that the execs will be getting bonuses and healthy pay packets - after all, they contribute SO much to the success of a company!

yes, it's a wonderful life working for DXC......................................................................................................................................

[Anonymous Coward]

Re: What morale?

Morale? She left years ago.

Perhaps we need a new exec challenge: Trading Places for a couple of months with some of the typical intermediate level staff to see how hey get on with the job and compensation.

[Anonymous Coward]

Anon because I've been hiding under a rock, this is the first time I've heard of DXC. When I read the headline I thought it referred to Dixons-Carphone Warehouse.

Apparently a merger of Computer Science Corporation and the Enterprise bit of HP Enterprise which itself was spunoff from HP.

So I'm not quite sure what HP Enterprise is now, if it is neither HP nor Enterprise.

[Paul Ward]

Not quite true that HP Enterprise was spun off from HP, rather in 2015 the old HP split into two. PCs and printers went to HP Inc, and the rest, including Enterprise Services, went to HP Enterprise. The Enterprise Services bit of HPE was then merged in 2017 with CSC to form DXC.

HP Enterprise now seems to consist of PointNext (rebranding of the old HPE Technology Services division), servers and some cloudy stuff.

[Toolman83]

Improve the (net) profits short term

But kill the long term viability through loss of staff skills, morale and business contracts

It's not the good people that stay, overwork anyone good that does.

Execs grab a fat bonus, then gtfo...

That's the modus operandi these days isn't it?

[Anonymous Coward]

Perhaps its time for inventory items (aka employees) to lobby stockholders for an increase in compensation.

Its not just annual pay, but a forecast pension pot decreasing in size because the forecasts are based on an unrealistic expectation of increasing pay.

[TnBuckeye]

Sad

Executives should refuse pay increases until the employees receive the pay increases and bonuses they have earned!

[Anonymous Coward]

Profit before customer satisfaction - not a recipe for long term growth

How on earth do DXC think the company will perform long term if the exec's have 80% of bonus tied to financial targets and only 20% on customer satisfaction? The end result of this will be when there is a choice of meeting a financial target or meeting client expectations the choice will be the financial target. Not going to meet margin target, then cut headcount on an existing contract boosting the margin, with a bit of luck the customer won't notice and the cost for missing any SLA's won't be greater than the saving. Seen this done multiple times, looks great until the renewal is due and the client (who by this time is aware that headcount has been cut and the service has been reduced), goes to competitive rebid and DXC loses scope if not the contract. It also impacts on new business, when the prospect checks with their peers as to the quality of service, doesn't come out good when they aren't delivering on the service.

The goals should have been 80% on customer satisfaction, existing customers who are satisfied will buy more from you and will be a good reference for new business enabling you to grow your business.