The target bonus payout for 2013 was more than 200% for top performers. While the payout was 150% for the second bucket, the third got 100%. Even average performers got between 60-80%. The 2013 bonus payouts on average are above the 2012 payouts.
Cognizant had forecast annual revenue growth of at least 17% for 2013, but ended up hitting 20.4% by the end of the year.
This number was way above the revenue growth of peers like IBM, Accenture, TCS, Infosys, Wipro and Capgemini, as well as the rate projected for the whole industry by Nasscom.
“2013 was a strong year for Cognizant, and hence, the annual bonus payout has been well over 100% of target on average – a level that is well above last year’s bonus payout,” said Ramkumar Ramamoorthy, Cognizant’s senior vice president in charge of corporate marketing and communications.
“We believe in true meritocracy, and as such, high performers have been rewarded at much higher levels of target bonus payout,” he added. However when asked about the specific amount that each employee got in each category got, he refused to divulge details.
Five employees at Cognizant’s Chennai office with whom ET spoke to, on condition of anonymity, confirmed that they had received their bonus letters. “Yes, we have got the e-letter regarding bonuses and it is higher than what was given last year,” one of them said.
Cognizant has over 1,71,400 employees globally, of which over 1,00,000 are in India spread across 10 cities. With a revenue forecast of $10.3 billion, up by 16.5% for 2014, the Teaneck, New Jersey-headquartered firm would be the second IT firm with substantial operations in India to join the $10-billion ( 61,000 crore) revenue club after Tata Consultancy Services.
TCS reached this landmark in 2011-12 and is now aiming another $10 billion in the next three years.