Cognizant may hike variable pay component in move to lower costs: Report

Discussions around the change in compensation have just begun

Cognizant, the Teaneck, New Jersey-headquartered software services major, may increase the variable pay component in its employees' compensation structure, the Economic Times reported on Tuesday, citing sources in the know. The move is being mooted as the IT services firm moves to cut costs and possibly shore up margins, added the report.  

The company is restructuring itself under the new CEO, Brian Humphries, said the report. This includes reducing the management layers and rethinking its sales and business strategy. Further, according to the report, reworking the compensation structure is another measure in a roadmap aimed at making the company 'fit-for-growth'. Earlier,