Genpact Links Salaries Of Top Executives To Digital Revenue
IT services company Genpact has introduced revenues from transformation services as a new performance metric in annual cash bonus program for top executives. "In 2017, we introduced transformation services revenue as a new performance metric in our annual cash bonus program for executive officers and other members of senior management and the performance share award granted to our CEO," Genpact said in a filing to the US Securities and Exchange Commission (SEC). Transformation services revenue comprise revenue from "our digital, analytics and consulting offerings", Genpact said, adding that it has prioritised investments in these areas in the past two years.
"The inclusion of this new metric in our 2017 compensation program is in line with our strategy to drive growth in our digital transformation services and is designed to ensure that our performance-based compensation program not only rewards the achievement of revenue and profitability goals but also focuses our executives on the company's long-term strategic priorities," Genpact said.
Chief executive officer NV Tyagarajan received total compensation of $3.15 million in 2017, Genpact said. This included salary of $630,000, share awards of $1,101,907 and non-equity incentive plan compensation of $1,335,000.
In 2016, Mr Tyagarajan received a total compensation of $2.87 million.
Genpact also said that that in 2017, it returned a total of $263 million to shareholders. $216 million was in the form of share repurchases under its $1.25 billion share repurchase program and $47 million was in the form of quarterly cash dividends, the company said.
The IT services company reported total revenues of $2.74 billion in 2017, up 6 per cent year-over-year (up nearly 7 per cent on a constant currency basis).
Commenting on 2017 results, CEO Tyagarajan had said: "The strategic investments we are making in digital, domain, and talent drove 25 per cent growth in transformation services revenues from our global clients."
Genpact will announce results for the first quarter ended March 31, 2018 on May 3, 2018.
