Well..problem is not the pay-cut..problem is with the non-transparent policies. and the way EVA has been used to tamper with employee's salary. If EVA target is decided in advance..why are the employees not informed ever about EVA target for the quarter..now also, noone knows what is the EVA target for Q4. There certainly is a EVA reserve account..to put-in or pull-out in case actual EVA is more than or less than the target. Noone knows what happened that EVA reserve account and how much is left in it now. as such pay-cut of 1.5% (net 1.05% after tax-savings) is not going to impact much..but this is a trend set by company starting with such a low cut, not to arouse any controversies..but I am sure now when the trend is set, it is going to be more cut in Q4..so be prepared!!
