TCS slashes variable pay

 In an unprecedented move, the $1 billion Tata Consultancy Services (TCS), the largest software services player in India, has slashed incentive packages for its employees across the board.

 The move comes at a time when the software major is making preparations for its initial public offering, which could be the biggest by far in the Indian technology sector.

 Riding on performance-based parameters, the new incentive scheme has brought down effective compensation levels by 5-25 per cent. The reductions come into effect retrospectively from April 1, 2003.

 TCS CEO S Ramadorai informed employees about the cuts through a webcast on Thursday.