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Executive Incentives

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Organizations offer heavy incentives to
executives to retain the talented workforce.
The immense competition in the market has
forced the organizations to offer lucrative
compensation packages. Performance based
incentives comes out to be the only solution
for the demand-supply disparity. Who works-
receives the appreciation and who does not
works- lacks behind.

Incentives are more effective in the marketing


segment as it results in more and more sales.
The business development executives strive
for more incentives and in the effort produce
more business and receive heavy perks.

                
Figure: Executive Incentives
The issues that have come up related to executive incentives are:

 People believe that the incentives offered to the executives are much more than
what the stockholders receive.

 Some people also criticize the appraisals blaming the time duration given in
achieving the set performance standards.

 Some people also complaint of the un-fair distributions of incentives. They


believe that team members actually work and more appreciation is given to the
team leader.

 Some people also complain that more incentives are given to place the
organizations on top of the salary surveys conducted by the respected research
organizations.

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