Comverse distributes bonuses of up to one month salary
Comverse Technology (Nasdaq: CMVT), which recently fired 1300 employees, granted current employees bonuses of up to one month¿s salary, TheMarker has learned.
The 2001 bonus was given to workers in various departments at various ranks according to personal achievements and contribution to the company, but the sum and scope of bonus distribution were both cut this year. In addition, senior executives, Kobi Alexander, Zeev Bregman and Itsik Danziger voluntarily waived their bonuses for 2001.
The company responded that it does not comment on it employee compensation policies.
4600-employee Comverse published its 2001 financial reports a month ago. The company reported $265 million revenues in Q4 compared to $346.5 million in the fourth quarter of 2000. The company also reported one-time charges of $54.7 million for lay-offs and a $14.6 million one time write-off of investments. Net of these charges, net profits were $10.6 million for the fourth quarter, compared with $76.8 million in the parallel quarter.
Market sources estimate that the company could make another round of 1,000 lay-offs in order to cut costs. The company published denials of the speculation, stating it has no plans for further lay-offs.
