Pay-Performance Conundrum Linking Theory whit Evidence by Manika Kohli

Pay-Performance Conundrum: Linking Theory with Evidence is an attempt to probe into the justification of anomalous rewards to the managers at the top echelons of the company. Whether their pay is corporate performance related, is a question long contemplated yet remains unanswered. While theoretical and conceptual knowledge propagates incentive pay, according to which ‘pay-for-performance’ should be a common parlance.

Practically, ‘pay-for-failure’ has often been observed. This text is an endeavour to connect this theoretical supposition with empirical evidence from a country in which the issue finds immense relevance due to its economic bifurcations, often termed as the ‘rich-poor divide’. India, long characterized by unequal wealth distribution, has thus been taken as the milieu to analyse this pay-performance conundrum.