Business Standard

Shouldn't pay be for performance?

Compensation is payment for what has been done. Performance is all about what has been achieved. Both can be measured. Surely, it cannot be so difficult to link the two


Amit Tandon
There are two numbers that ha­ve been unconnected with a co­mpany’s financial performance for a while. First its share price and second the CEO’s pay. The share-price — at least I would like to believe, is not something that the company has any control over. And the market price does periodically correct itself (or at least the divergence comes down for a short whi­le). The CEO’s compensation is determi­ned by a tighter group — the board, its remuneration committee, and shareho­lders. In a more perfect world, you would expect far greater alignment between performance and pay. But we are seeing
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 23 2020 | 11:28 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to