Amdocs abolishing pay raises

Amdocs (NYSE:DOX) ( DOX) has belatedly joined most of Israel's other tech companies in abolishing most pay raises for the time being.

The company recently completed the process of trimming its workforce by 1,000 people because of the downturn in its business. Most Israeli hi-tech companies totally abolished raises in 2001 because of the harsh business environment, but Amdocs had lifted salaries, in keeping with its habit over years.

But this year the company, in which pay is relatively low compared with peer firms, decided to freeze salaries only after taking other cost-cutting measures, such as canceling bonus plans for 2002, abolishing parking compensation, and charging a symbolic fee for meals.

Amdocs, which develops software for billing and customer care, recently announced its results for the fiscal third quarter, ending June 30. The company lost a net $26.8 million, or 12 cents per share, after netting $26.4 million in the previous quarter, and $18.5 million in the third fiscal quarter of 2001.

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