Business Context and Reporting Period
This Form 8-K filing by Genpact Limited, dated February 29, 2008, reports on the Compensation Committee's decisions regarding executive compensation. The filing details the approval of 2008 base salary adjustments and 2007 performance bonus payments for the company's named executive officers.
Key Financial Metrics
The filing does not provide consolidated financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. It focuses exclusively on executive compensation figures.
| Executive Officer | Role | 2007 Bonus Payment | New Base Salary (2008) | Effective Date |
|---|---|---|---|---|
| Pramod Bhasin | President and CEO | $1,250,000 | $750,000 | July 1, 2008 |
| Vivek N. Gour | Chief Financial Officer | $141,000 | $340,100 | October 1, 2008 |
| N.V. Tyagarajan | EVP, Business Development | $675,000 | $450,000 | December 1, 2008 |
| Patrick Cogny | CEO, Genpact Europe | $121,000 | $386,100 | December 1, 2008 |
| Maekawa Mitsuru | CEO, Genpact China | $87,000 | $370,500 | September 1, 2008 |
Note: Vivek Gour's compensation is paid in Indian Rupees, Patrick Cogny's in Euros, and Maekawa Mitsuru's in Japanese Yen. The USD amounts listed are calculated using specific exchange rates provided in the filing.
Material Changes
The primary material change reported is the increase in base salaries for all five named executive officers, effective between July and December 2008. Additionally, the filing discloses the specific cash bonus amounts approved for the 2007 fiscal year, which are scheduled for payment on or before March 31, 2008.
Management Commentary and Unusual Items
The Compensation Committee considered tenure, scope of responsibilities, performance, and retention factors when setting salaries. An unusual item noted is that Vivek Gour's 2007 bonus includes a one-time IPO-related bonus of $50,000. The filing explicitly states that while the base salaries were approved by the Committee, they are not set forth in written agreements between the Company and the executives.
Investor Verification Checklist
- Verify the total cash outflow for executive bonuses ($2,274,000) against the company's cash position in the most recent 10-K or 10-Q.
- Confirm the exchange rates used for international executives (INR, EUR, JPY) to ensure accurate USD conversion for financial modeling.
- Review the company's stock performance and retention metrics to assess the justification for the salary increases.
- Check subsequent filings to confirm the actual payment dates of the bonuses and the implementation of the new base salaries.