MphasiS to offer retention bonus

In a bid to retain its key senior employees post merger with EDS Corporation, MphasiS proposes to come out with a "cash-component based" retention bonus plan. "This is mainly to retain good employees and provide them a cash incentive to keep them motivated," said Mr Alok Mishra, CFO, MphasiS.

Further, MphasiS would not issue any more fresh employee stock ownership plan (ESOP) for this year as the company does not plan further equity dilution, Mr Mishra said. "What ever ESOPs we have at the moment would be issued," he said. The retention plan will be effective July 2006 and cash incentives would be paid to some 150 key senior employees over the next 18 to 36 months at regular intervals, Mr Mishra said. The cash bonus that each identified employee would get depends on the length of the service and pay scales among other factors, he said.

Mr Mishra denied rumours that the company faced increased attrition as it got merged with EDS India. Market sources said the company has seen several people leaving, especially at the architect level and above mainly in the US.

Terming the higher attrition that the company faced in the month of May as a "blip," Mr Mishra said "on an annualised basis attrition stood at 17-18 per cent." .

Taken from Business Line

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