Cognizant is an American multinational corporation providing digital, technology and IT consulting services across the world. Headquartered in the United States, the company is ranked at 8 in the Fortune’s Most Admired Companies’ list and at 18th position in Forbes’ FastTech25 list. Francisco D’Souza has been serving the Cognizant as Chief Executive Officer since January 2007.
The CEO, Francisco D’Souza has noticed a significant fall in his annual cash incentive paid to him in the year of 2016. His cash incentives dropped by 21 percent to $450,332 while his incentives were set to be $564,655. He received a total compensation, including his salary, annual cash incentive and performance stock units, of $12.03 million in 2016. Francisco D’Souza has been among the top-paid CEOs at IT companies. He took home $11.95 million as annual compensation in 2015 receiving 142% of their target bonuses for the year, resulting in a significant spike to their annual pay packages, along with his top team members.
Cognizant is a performance-based company and gives incentives and bonus to its employees based on their performance. 2016 has been a tough year for the company and the set targets were not achieved, which also influenced the salaries of the staff. The company’s result for the fourth quarter of 2016 shows that company has failed to meet its targets noticing the drop of 2 percent in the company’s net profit to $416 million against $423 million for the same quarter last year.
The USA’s strict visa policy, which has affected all the IT companies terribly, is also a major reason behind this fall in incentives. However, 2016 revenue was slightly lower than the range of $13.65 billion to $14.20 billion that the company had anticipated at the time of announcing its December 2015 quarterly results but showed a growth of 8.6 percent against that of 2015. The company has reported the GAAP net income of $416 million this quarter which is 1.9 percent down from $424 million in the corresponding quarter of 2015 while net income of $1.55 billion for the full year against $1.62 billion in 2015. The company ended the quarter with approximately 260,200 employees globally.