News: Cipla holds back incentive of top managers

Compensation & Benefits

Cipla holds back incentive of top managers

Indias third largest drug company Cipla, has decided to refurbish the companys operation by putting a halt to availing incentive.
Cipla holds back incentive of top managers

Cipla, the Indian multinational pharma company has freeze incentives of about 400 top managers. This move aroused as a strategy to cut down employee cost as a part of the company’s operational revamp. 

There has been a rising instability in the organization due to several senior management hiring. With the frequent change in management and operational structure, the company’s profit has seen a major drop down in their profit graph. 

“The company, as part of its annual compensation review, did not review rewards of some senior employees earlier this year,” confirmed global chief people officer Prabir Jha in an email response to ET. 

It is also said that the company has revised the salary structures of atleaat 2,000 employees by includind peromance based variable pay, a new component in their salary structure. Jha also commented, “The company is in the midst of reviewing its total rewards philosophy. Movement towards greater variable pay is part of that thinking. We cannot comment on future decisions at this time”. About 10-15% of their salary will now be variable pay, which will be dependent on percentage of targets achieved.

Cipla which is India’s third largest drug maker after Sun Pharmaceuticals and Abbott has seen a shift towards a leaner top deck. The company has appointed Umang Vohra as the managing director and global chief executive officer, who took over from CEO Subhanu Saxena and Ashwani Dahiya who has been roped in as Chief Talent Officer replacing Vikram Bector who joined the Piramal Group as the Chief Human Resource Officer.

 

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Topics: Compensation & Benefits

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