Senior staff at Tata Consultancy Services will miss out on quarterly bonuses/variable pay after the company failed to meet performance targets, according to an internal memo seen and reported by Reuters, this is the first time in at least two years all variable pay was withheld for some workers.
“For associates C3A grade and above, there will be no QVA (quarterly variable allowance) this quarter. This decision was taken after careful consideration as our performance for the quarter fell short of internal targets,” said Sudeep Kunnumal, Chief Human Resource Officer in the memo.
Associates in C3A and above grades are employees with typically 7-10 years of experience up to senior-level management. The junior-level employees will get 100% of the eligible pay, the memo added-as highlighted by Reuters.
The development comes after TCS reported its weakest sequential revenue growth for a September quarter in three years, reflecting continued challenges in demand for traditional IT services. This came even as the company’s AI-related revenue rose nearly 20 percent. TCS shares gained as much as 6.2 percent on Friday, with the increase in AI-related revenue among the developments that drew investor attention.
TCS Senior Staff To Miss September Quarter Variable Pay: Report
