Indian IT service companies Wipro and Tata Consultancy Services (TCS) have decided to defer variable remuneration to a section of its employees.
Wipro will be delaying variable pay to its mid and senior-level executives for the June quarter due to pressure on operating margins.
TCS has delayed the variable payout by a month for some employees for the June quarter.
A few months ago, some of the Indian IT companies offered significant increase in salary to their CEOs. For instance, Infosys CEO Salil Parekh received a 43 percent increase in salary and he drew Rs 71 crore in FY22. Thierry Delaporte, CEO of Wipro, received an annual salary of Rs 79.8 crore, after 20 percent hike, in FY22.
Meanwhile, Rishad Premji, Executive Chairman of Wipro and a former Chairman of IT industry body Nasscom, recently expressed concern on the growing moonlighting trend in the IT industry and called it cheating.
The concept of “moonlighting” essentially connotes employees taking up other jobs in addition to their regular employment. While most companies have legal contracts with their employees insisting that they cannot work for anybody else, the pandemic loosened things up as employees shifted to work from home mode and monitoring them wasn’t easy.