Infosys slashes discretionary pay for senior mgt

Software major Infosys today said it would pay lower discretionary pay to senior management level personnel due to the economic slowdown.

Owing to "slow performance, the increment to its employees will be minimal this time around", Kris Gopalakrishnan, Chief Executive Officer and Managing director of Infosys Technologies told reporters.

He was speaking on the sidelines of a conference on Walking the Talk: Business Challenges, organised by the CII.

Asked whether there had been any paycuts involving senior management level, "It is not a paycut.. The performance of the company is slow so the variable pay is slow for senior management. Executive board members can lead by example. Discretionary pay is going to be lower this time", he said.

Going forward,Infosys expected a slowdown in IT service due to delayed spending. "There is an impact of the slowdown. IT service business will be slow in perceivable future". But when there is a recovery, the IT outsourcing will benefit and even see an increase in outsourcing, he said.

On US President Obama's statements on outsourcing, he said "We have to wait and watch to see how it is implemented, how they are converted to policies. There is confusion on what he meant, clarifications are coming."