If the company does not do well, the variable component of the pay, givens them the flexibility to change their salary burden...and employees are very much part of the company to enjoy the fruits of the highs and lows ... What's wrong with that? It is done in most advanced companies around the globe.... - Sri
RE:Variable pay - by definition is variable
by Ameen Pulikkalakath on Feb 02, 2008 01:38 PM Permalink
The problem is when the company exceeds its EVA target the excess amount goes to EVA bank. But when it doesn't meet the targets they reduce the employee pay out. TCS has enough money in its EVA bank and could have avoided this.
RE:RE:Variable pay - by definition is variable
by Chola The Greatest in the Universe on Feb 03, 2008 09:27 PM Permalink
This is applicable only when employees are partners! Employees are employees, you cant distribute your financial loss to everyone while passing the big bucks when you are on a high-ride only for senior executives and shareholders.
