Top Tech Mahindra executives offer to take 10-20% pay cut for company's poor show

BENGALURU: Top executives in the ranks of executive VP and senior VP in Tech Mahindra have offered to take a pay cut of 10%-20% because of the company's lacklustre performance over the past few quarters.
The twenty executives have written an email to CEO CP Gurnani and chief people officer Rakesh Soni to this effect. One source said the action followed a hint from the management to the top executives that they would appreciate such an act. The pay is expected to be restored if and when the company's performance gathers some steam.

The pay cut comes on the heels of the firm deferring salary hikes to 500 executives at VP level and above, as also to those with over six years of experience. An email to the company on the matter did not elicit a response.

Across major IT services firms, top executives are under pressure. Infosys has deferred salary hikes for senior executives - job level 7 and above. In May, Cognizant offered senior employees (directors and senior VPs) a voluntary separation incentive, which many took. The industry is trying to manoeuvre through two difficult and simultaneous challenges - a slowdown in IT spends, and clients' desire to move to new digital technologies. These require a significant refreshing of talent.