The Nasdaq-listed software firm, in a SEC filing, had said it will pay its senior executives 100 percent performance-linked stock options if the company's revenues touch USD 8.51 billion in fiscal year 2013.
However, if Cognizant meets the target of USD 8.515 billion revenue, it would translate into a growth of 16 percent, lower than its expected growth of 20 percent this year.
"The board decided on one aspect of the compensation for the management. It is only about the management compensation, not necessarily the way things would be next year," vice-chairman Lakshmi Narayanan told a television channel.
"That is something Cognizant will talk about in a very detailed manner when it presents the fourth quarter and the full year results," he added. Fifty percent of the performance units would be given upon achieving the target of USD 8.22 billion in 2013, the filing had said. No such award would be given if the company's revenue in 2013 is less than USD 8.22 billion.
The senior executives would be eligible for 200 percent of the performance units if Cognizant achieves revenue of USD 9.175 billion.
These executives include CEO Francisco D'Souza, President Gordon J Coburn, Group Chief Executive Industries and Markets Rajeev Mehta, Group Chief Executive Technology and Operations Ramakrishnan Chandrasekaran, CFO Karen McLoughlin and Senior VP, General Counsel and Secretary Steven Schwartz.
"At this point of time, it's just a view that the board has taken as far as compensation of executive team is concerned and that's about it," Narayanan said.
IT stocks continued to be under pressure with Infosys, Wipro and TCS losing 1-2 percent even today.
Cognizant has been growing faster than its some Indian counterparts over the last few quarters and a lower growth target may come as a dampener for Indian IT sector, which is already seeing flat IT budgets and rising cost of operations.
He further said the negative reaction coming from the Indian IT stocks was not necessarily because of Cognizant.
"I am not necessarily sure that it's related to that news. IT industry here or stocks particularly have been reacting to news from Nasscom when the 11-14 percent estimate was reduced to lower end," he said.
"So, it could be the impact of that. And whether next year is going to be as good, better or worse is something that one would have to wait and see," he added.
In the year to March 2013, industry body Nasscom said it expects Indian IT services exports to grow by at least 11 percent from earlier expectation of 11-14 percent growth.
Cognizant, which follows January-December fiscal, has guided its revenue in 2012 to be at least USD 7.34 billion (up atleast 20 percent compared to 2011).
This was a downward revision from earlier in the year, when the company had hoped to grow at 23 percent. Its 2011 sales stood at USD 6.12 billion.
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