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Cognizant's recent off-campus placement initiative has stirred significant controversy on social media, primarily due to its entry-level salary offer of Rs 2.5 lakh per annum (LPA) for fresh graduates. Despite being a leading IT company with a global footprint, Cognizant has retained this salary level since 2002, which has led to widespread discontent, especially given the current economic challenges.
In a job market fraught with hiring freezes, layoffs, and the increasing role of AI in tech, Cognizant’s static salary offer has drawn criticism. Fresh graduates, who face limited job prospects, have expressed their frustration and sarcasm across various social media platforms. Many have highlighted the disparity between the rising cost of living and the stagnant salary, questioning how new employees can manage financially in metropolitan areas with such minimal compensation.
Social media has a field day
One social media user quipped, "2.52 LPA is incredibly generous. How will graduates even decide what to do with all that money?"
Another commented, "That amount wouldn't even cover a year's rent in a small village, let alone a city. Cognizant must be testing if people can survive on tea and optimism."
"Is it any wonder that younger generations are turning to content creation instead of traditional careers?" another user joked.
Someone else added, "People can earn more by offering private tuition."
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One post pointed out, "This package was what graduates received in 2002. No housing, no transportation, no meals included. After PF deductions, freshers in metro cities are left with just 18 to 19K rupees per month."
The sarcasm continued with, "In the current context of tech layoffs, it's positive to see companies still hiring. But 2.52 LPA is a real concern. A decade ago, the average package was around 3 LPA. Instead of rising, salaries seem to be shrinking. Whether it's due to increased competition, reduced profit forecasts, or something else is unclear."
Another user chimed in, "Wow, 2 lakhs a year? My driver earns more, working only four days a week. Lol."
Critiquing the low pay, one user remarked, "People are justifying this low salary by saying it’s better than nothing."
Cognizant CEO's pay draws attention
Amid the uproar over the low entry-level salary, attention has turned to Cognizant’s CEO, who is the highest-paid in India. According to a report by LiveMint, CEO Ravi Kumar Singisetti received a staggering $22.56 million (about Rs 186 crore) last year.
Singisetti, who became CEO in January 2023, received a one-time stock award worth $20.25 million (approximately Rs 169.1 crore), making him the highest-paid IT CEO in India for 2023. His compensation package is reportedly 556 times the median salary of Cognizant employees.
Widening wage gap in IT
The criticism of Cognizant’s salary package comes at a time when the wage disparity between CEOs and entry-level employees in the IT sector is becoming increasingly pronounced. Companies like Infosys, Wipro, and HCL have seen this gap widen over the past five years, as reported by The Times of India.
Former Wipro CEO Thierry Delaporte's compensation was 1,702 times higher than the median salary of Rs 9.8 lakh in the 2023-24 fiscal year. At Accenture, CEO Julie Sweet's earnings were 633 times the median employee salary of $49,842 for the 2023 fiscal year. The growth in CEO pay, largely driven by stock awards, has fueled this widening gap.
According to The Economic Times, in 2023, stock awards made up about 70 per cent of total CEO compensation, with the median value of these awards increasing by 10.7 per cent to $9.4 million.
Infosys founder NR Narayana Murthy has stated that a fair CEO salary should be 25 to 40 times that of the lowest-paid employee. However, Infosys CEO Salil Parekh's compensation is nearly 700 times the median employee salary, and significantly more when compared to the lowest-level employee, according to The Economic Times, a sharp increase since 2019.
Wipro has also experienced a significant rise in CEO-to-employee pay disparity. Former CEO Thierry Delaporte earned $20 million, 1,702 times more than the median employee salary of Rs 9.8 lakh for the 2023-24 fiscal year.
HCL's CEO C Vijayakumar saw his pay-to-median employee salary ratio rise to 707:1 in the 2023-24 fiscal year, up from 253:1 the previous year.
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