Infosys News: Infosys to roll out average 60% variable pay for January-March quarter

Infosys has rolled out an average of 60% variable pay for the fourth quarter of 2022-23, which was impacted by a volatile market and uncertainties, documents accessed by ET show.

India’s second-largest software exporter had rolled out 70% variable pay during the first quarter of FY23 and 65% in the second quarter.

“While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events,” the communication said. “As we remain vigilant to the changes in the market, we must also see this as an opportunity to rally as a group and remain committed to navigating the changing business landscape,” it said.

Employees will receive their performance pay in the May payroll, said an internal communication addressed to employees. Infosys did not respond to ET queries till press time.

Infosys forecast its slowest revenue growth in six years of 4-7% for FY24 as it flagged “ramp-downs” of client mandates amid an uncertain macro environment in its major markets of US and Europe.

The company said its revenue expanded by 15.4% in FY23, which was below its own guidance range. Quarterly revenue was up 16% at Rs 37,441 crore, which also fell short of an ET poll of analyst estimates that pegged it at Rs 38,796 crore. Revenue was down 2.3% sequentially.

India’s largest IT services company Tata Consultancy Services had announced 100% variable pay for all employees last year. The third largest player, by revenue, HCLTech said that 85% of the employees will get their variable pay.

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