The Variables in Variable Pay

Mahindra Satyam, Samsung, LG & Essar Group among companies handing out more than 100% variable payouts - The Economic Times: "KOLKATA: Indian executive salaries got a shot in the arm as companies showered one of the best performance-linked bonuses on employees this year. The buoyant mood is reflected in almost all the top companies, many of which recorded double-digit growth rates in sales and profits in 2010-11.

Consequently, some of them doled out more than 100% of the target variable pay, and the sky was the limit for top performers.

Korean electronics major Samsung has given employees variable payouts of 150-250% of the target amount while rival LG has given 200-700% of basic pay as bonus based on performance. Hindustan Unilever made headlines earlier this month after it paid its highest bonus in recent years (between Rs 20-40 lakh) to managers after a two-year freeze. Pharma major Sanofi Aventis has given 110-128% of the target variable incentive, about 5-6% higher than last year.

The Essar Group has provided employees with a 100% variable payout, and as much as 125% to top performers, while Schneider Electric has given an average variable payout of around 130%, compared with about 90% last year. Dabur, Godrej Consumer Products and Future Group are also considering hefty payouts."