The novel coronavirus pandemic has brought the global economy on its knees. Business is not as usual and layoffs or salary cuts have become a daily routine now. The pandemic has impacted several businesses and organizations so much that some are even planning on to file bankruptcy if the crisis is not solved easily.
Starting from small scale businesses or early-stage startups to big players of the economy, everybody is facing the heat of the pandemic. Countries and organizations are fighting battles on two fronts. On one hand is the issue of containment of the virus and on the other hand the impact it is having on the economy.
Joining the likes of Zomato, Oyo, FabHotels, Treebo, Ixigo and Bounce, technology solutions provider for marketers, InMobi has now also planned to slash salaries of its senior employees.
In a blog post for employees, Naveen Tewari, the founder and group CEO of InMobi announced the plan for restructuring of compensation for its senior leadership. The company has also decided to compensate for the loss by offering stock options, a different strategy from the other companies.
Tewari wrote that employees will receive a portion of their salary in the form of stock, instead of cash, which starts at 10% of their salaries and the percentage will increase at the leadership level.
Tewari wrote, “The impact of the pandemic has been hard on everyone – emotionally and financially; personally and professionally. As business leaders, we need to take some very difficult decisions that are tough and compassionate at the same time. At InMobi Group, our guiding principle has been one of shared celebration and shared sacrifice. In order to manage our finances better while minimizing the impact on as many people as possible, we have revised our compensation structure for our employees, effective April 2020. Under this revised structure, employees will receive a portion of their salary in the form of stock, instead of cash. This stock component starts at 10% of an employee’s salary, with the percentage increasing at the leadership levels.”
He further added, “As the pandemic and its impact on our lives and the economy is showing us, we can’t rule out anything as we don’t know what the future holds. However, we will continue to find ways to minimize the impact on as many people as possible.”
He also assured the employees that the firm will continue to find ways to minimize the impact on as many people as possible. The company also said that it has no plans to layoff employees at the moment.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.