HYDERABAD: In a show of solidarity towards Satyam Computer Services in the current crisis, top level executives of the company have decided to
forego a salary revision for FY 2008-09.
The move by senior leaders in Satyam’s I-2 band and Band I-alpha comes on the back of strained finances and outstanding loans with banks.
The beleaguered firm has 46,600 employees on its rolls currently. Although quite a few employees working onsite on various projects were called back, the company still expends Rs 500 crore every month on paying employees’ salaries. The total variable pay outflow is about 7 per cent of Satyam's wage bill.
While in absolute amount terms the refusal of a hike may not be a very significant part of the total compensation and benefits of the organization, senior level employees reckon that the amount could be used to meet outstanding commitments in this last quarter, said an internal communication to senior associates
Satyam, once the fourth largest IT services provider in the country, saw around 6,400 odd employees exit the firm after its founder B Ramalinga Raju confessed to misappropriating its accounts for the last seven years.
However, 15-20% of the associates working on a specific accounts and verticals were retained for customer continuity.
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