back to article Infosys reduces employee bonuses after execs promised better profit margins

Concerns over rising labor costs and the subsequent impacts on their profits have led Indian outsourcer Infosys to cut Q1FY23 variable bonuses to an organizational average of 70 percent of theoretical maximum. In an email dated sent to employees on Monday and seen by The Register, Infosys told its workforce: As we closed …

  1. Pascal Monett Silver badge
    Facepalm

    "competitive compensation revisions"

    Competitive compared to who ?

    My bullshit bingo card has just gained another square.

    1. XSV1
      Unhappy

      Re: "competitive compensation revisions"

      It's just typical corporate bullshit-speak.

  2. Marty McFly Silver badge
    Thumb Down

    I think I found the problem!

    28% attrition? Where did everyone go? Hmmm, probably unrelated. Nevermind.....back to looking at my bonus plan.

    1. DS999 Silver badge

      Re: I think I found the problem!

      Been a few years since I did a gig where I worked with a team in India, but every time I did I would see turnover far exceeding 28%. I estimated it at more like 100%, but I was working with the most technically capable people on already highly technically capable teams, so they are the people who would find it easiest to move.

      But it goes to show that even in India the best way to get a raise is to switch companies, not wait for the one you work for to recognize your value!

      1. MyffyW Silver badge

        Re: I think I found the problem!

        Of my ex-Wipro colleagues from six years ago just a tiny fraction still work for them, whilst most work for the wider constellation of Indian offices of global tech or TCS, HCL, Infosys et al

        I confidently expect "staff attrition rate of 28.4 percent for the previous twelve months" to be a low, not a high water mark :-)

    2. Michael Hoffmann

      Re: I think I found the problem!

      I'm contracting through one of those Indian giants and it seems to be the standard method of obtaining a better package: constantly jump between them. That's what my Indian perm colleagues tell me. Apparently when they flog you to clients, there's a n-strikes-and-you're-out policy. I'm not sure what 'n' is.

      Wonder if that attrition is also why they dare not do more than occasionally nag me about switching to perm (better profit margin for them, innit). They don't want to risk me jumping ship and right now with the market here, I'm in the driver seat.

  3. DS999 Silver badge
    Angel

    Those receiving 95.1% bonus levels

    Include the executive staff, because they are important and we must retain them. Those receiving 0% include all the regular people who actually do work, because they are totally replaceable cogs in the machine.

    1. elsergiovolador Silver badge

      Re: Those receiving 95.1% bonus levels

      That reminds me of CEO Steve who was not seen in the office for over a month and nobody noticed and then the lowly developer Dave was gone for only two days and there was a sense of panic around the office.

      Guess who got the bonus.

    2. Outski Silver badge

      Re: Those receiving 95.1% bonus levels

      Hey, at least Mrs Sunak's holding has gone up, so now she's paying tax in the UK, perhaps it'll pay for for another five nurses and a hospital cleaner

  4. Michael Hoffmann

    Show me the money

    I've since seen the light and gone independent contract, but back when I was still doing the perm thing, every time some recruiter would come at me with "and a fantastic bonus" I would give them that famous line. I had never seen one of those vaunted bonuses as I wasn't an exec, so shove it to that little place near Lancre. Always some excuse: team/region/global didn't do well enough, so sorry, sunspots, climate change, Mercury in retrograde, what-not.

    1. Ace2 Silver badge

      Re: Show me the money

      I once had my bonus cut because *IBM* decided to walk away from its OEM hardware business. Did I work for IBM? No, I did not, and I still fail to see how I could have had any effect on their decision.

  5. An_Old_Dog Silver badge

    bonus (in-)equality

    "... have led Indian outsourcer Infosys to cut Q1FY23 variable bonuses to an organizational average of 70 percent of theoretical maximum."

    Keyphrase: "organizational average". So ... some bonuses are more equal than others.

  6. Potemkine! Silver badge

    50th Anniversary

    Money, it's a crime

    Share it fairly, but don't take a slice of my pie

    Money, so they say

    Is the root of all evil today

    But if you ask for a rise, it's no surprise

    That they're giving none away

  7. Anonymous Coward
    Anonymous Coward

    20% operating margin is huge

    It's an utterly massive, supernormal margin for a large company. It indicates the market has failed - there is either a monopoly or collusion going on, and government needs to look very closely to see why.

    Most companies that have active competitors are around 5%, with the upper bound of 10%. (Shell and BP claim 9-10%)

    A company making more than that which claims to have significant competition is almost certainly colluding somehow.

    1. Roland6 Silver badge

      Re: 20% operating margin is huge

      For Q1 2023, Infosys reported 17.5 percent year-on-year growth in revenue to $4.4 billion. Operating margin was 20 percent,

      Assuming a typo. Wipro - a direct competitor, reported an operating margin of 17.7 per cent for 1Q 2022...

  8. Tuesday Is Soylent Green Day

    He should lose his whole bonus for this phrase alone...

    "...optimize various cost levers to drive efficiency..."

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