Cognizant will reward bonuses above the level of company performance and substantially higher than 2019, to its employees.
It said the executive team has decided to reward bonuses although Cognizant didn’t meet its original revenue and operating margin targets.
It maybe noted that Cognizant reported a 20% drop in net profit to $316 million in the fourth quarter ended December 2020, against $395 million in the same period last year.
In a letter to its employees, the company lauded employees’ incredible efforts and said, “As a form of variable compensation, annual bonuses are linked to our company performance. The better we perform financially, the higher our bonus payout can be.”
Cognizant said 2020 was both a challenging and an extraordinary year. “In the face of immense uncertainty created by the pandemic and ransomware attack, you rallied, demonstrating heroic actions to take care of each other, our clients and our company,” the letter added.
Quarterly promotion cycle
Cognizant has promoted more than 24,000 people, close to 10% of its company, across every level. Starting from the second quarter (Cognizant follows the calendar year), the IT company will move to a quarterly promotion cycle for billable associates at the Senior Associate level and below.
The company has nearly 2.90 lakh associates around the world.
