Rewarding good work and recognising employees aspirations will drive performance and growth in the corporate world. The best example of this was set by the corporates in the U.S. in the post-Second World War era. Perhaps they went overboard and the after-effects are manifest now with income disparity becoming more acute. Practices such as huge increase in the ratio of variable pay to fixed salary, total reward, retention bonuses, joining bonuses, parachute clause for CEOs became the order of the day.
Indian corporates are greatly influenced by the American style of management, including compensation practices. The recent episodes in a couple of big and reputed corporates in India are prompting many to re-think the kind of compensation …
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