We can look at two simple ideas of the modern organisation management
- The ESOP . WIih staggered vesting periods, it ensures longevity and contribution to the organization. Caders that have more influence on the firms performance and growth, may have more stake that motivates too.
- The Incentives/Variable Pay: Though part of CTC, most understand that the component of Individual and Company performance for the period.
The others are mostly regulated by bodies like SEBI, ensuring that there is a control on exercising for those with deeper Inside knowledge of the company's performance.