A cost-cutting drive at US-based IT company, Cognizant, did not stop its senior executives from getting double-digit hikes in salary last year.
Former CEO of Cognizant earned over $14 million in 2018, which was up nearly 13 per cent from 2017. His salary was $750,000, in addition to which he got almost $12 million in stock awards, $1.3 million in non-equity incentive plan compensation and more than $29,000 in other compensation. The Company’s former president earned $27 million, which was almost four times the compensation he received in 2017. A large portion of this was in the form of stocks, according to the US Securities and Exchange Commission.
Francis D’Souza was replaced by Brian Humphries as the CEO of Cognizant this April onwards. Rajeev Mehta, will also be replaced as President with effect from May 1.
Cognizant’s chief financial officer (CFO) reportedly earned $5.5 million in 2018, as compared to $4 million the previous year. The executive vice-president, strategy and marketing, earned $4.6 million in 2018.
The salary hikes for the senior ranks at Cognizant came on the heels of the Company’s announcement of laying off nearly 200 senior executives so that there is opportunity for the younger employees to develop and progress.
Cognizant reported only a single-digit revenue growth last year, whereas TCS boasted of a double-digit revenue growth on March 31, 2019. Clearly, the layoffs and other cost-cutting measures have adversely affected growth.