Revenues drop, layoffs continue, raises postponed, yet CEO is taking 1647 times more money than employee.

Cognizant CEO Salary: The IT sector has been going through bad days since last year. Retrenchment is going on all over the world including India. In the name of cost cutting, millions of employees have been fired and sent home. The turnover of companies is decreasing. Their income is decreasing. Most of the IT companies are not even doing campus hiring this year. It is being feared that the year 2024 will not be auspicious for the IT sector either. But, the other side of the coin is that these same companies are paying hundreds of crores of rupees as salaries to the top management of the companies. Cognizant CEO Ravi Kumar Sangesetty has received a salary of around Rs 186 crore ($22.5 million) for the year 2023. That too at a time when Cognizant’s revenue has declined. CEOs in India are being paid around 1647 times the salary of employees. This figure has sparked a huge debate about salaries in the country.

Cognizant’s revenue fell

Cognizant’s performance has not been anything special. The company’s revenue fell 0.3 percent to $19.4 billion. Still, the company has given its CEO Ravi Kumar Singh Setty a huge sum of money in the name of awards once. It also includes performance stock units and cash sign-on bonuses. Before him, Brian Humphreys, the company’s CEO, was paid $4.2 million in 2023 and CFO Jatin Dalal $5.2 million.

Salary in India is very low compared to the rest of the world.

This has led to a CEO-to-employee pay ratio in India of around 1647:1. In the world this number is 556:1. The poor financial performance of the companies and the high salaries of the top management are now coming to the attention of the stakeholders. The average employee salary in the country is $13,735. In the world, this number is 40,660 dollars. At present, we are far behind the salaries paid to employees in the world. On the other hand, the top management in India is being paid unbelievable sums.

Increment of Cognizant employees postponed.

Recently, Cognizant deferred employee increments by 4 months. Due to which there was already dissatisfaction among the employees. Now hearing the CEO’s package, he is sure to get a big shock. Now it will be interesting to see what the company does in the future regarding this dissatisfaction. Apart from this, all the stakeholders will also keep an eye on the future policy of the company.

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