Changes in the Executive Bonus Payment Patterns in India Between 2008 - 2016: Some Evidences. (April 2017)

• Record Type: Journal Article
• Authors: Varkkey, Biju; Korde, Rupa; Wadhwaniya, Sunny
• Is Part Of: Compensation & benefits review. Volume 49:Number 2(2017)
• Page Start: 63
• Page End: 86
• Publication Date: 2017-04
• Subjects: bonus -- bonus in India -- bonus trends -- executive bonus -- performance bonus; Wages -- United States -- Periodicals; Compensation management -- United States -- Periodicals; Employee fringe benefits -- United States -- Periodicals; Executives -- Salaries, etc -- United States -- Periodicals; 658.222
• DOI: 10.1177/0886368718757095
• Languages: English
• ISSNs: 0886-3687

Abstract

This article provides a brief overview of the trends in bonus payment to executives in India. Using data from the voluntary web based survey of Paycheck India, which is a part of WageIndicator Foundation, this article analyzes the trends in five types of bonuses, viz., performance, end-of-year, festival, profit-share and others, from 2008 to 2016, across public and private sectors and four types of industries, viz., manufacturing and construction; trade, transport and hospitality; commercial services; and public sector, health care and education. The results suggest that performance bonus is the most popular type of bonus, while profit-share is the least popular. However, from 2008 to 2016, the shares of all types of bonuses in both sectors (Public and Private) and all industries have been declining, and in most of the large industries and firms, bonuses in terms of cash payments are now restricted to fewer executives.