Trending @Infosys; To Answer Questions about Hikes

The questions of if to, whether to, and when to give out hikes is not connected with individual performance. It is all a discussion of how much the upper management wants to increase the costs under the header associated with personnel in the P&L statement before quarterly results.

Assuming that dividend is paid out on every share (which it isn’t, but it makes the calculation here a bit more straightforward); the company paid out a final dividend of ₹28 per share this time around, for ~414 crore (4.14 billion) shares. That is a cost of 11592 crores (for this quarter). The total headcount of the company is 3.17L. At an average salary of 4.57L (declared by Infosys, and this number will be lower if the support staff was not included in this number), that’s an approximate cost of 14487 crores (per year).

To appease to the shareholders, dividend, which in large part is an optional cost post profits, is being paid out. The company is not struggling to maintain, nor to rake in profits. Check the CEO’s salary hike for confirmation on that part. Not giving out hikes is a deliberate decision that has been made to ensure that the cost of salaries to company remains low. If the employees leave, they will see what they need to do. So if you want a hike, the only option is to Navigate your Next.