Designing Performance-linked Incentives for Senior Employees: How Would You Approach It?

Designing Performance-linked Incentives (PLI) for Senior Employees

I have been asked by the management to prepare Performance-linked Incentives (PLI) for senior employees. Can you please suggest how to design the same? So far, only a fixed component exists for all the high-salary (10 lacs+) employees' salary component. However, management wants PLI to be included for all employees earning more than 6 lacs per annum.

Considerations for Introducing PLI in CTC

Please suggest what factors should be taken into account before introducing the PLI in the CTC. It would be really helpful if you can suggest the CTC breakup of 12 lacs, including PLI. Currently, we have enclosed the CTC structure for reference.

Thanks,
Ashish

I could not open the attachment. However, I would like to share that corporate companies generally declare PLI percentages as 15, 10, 5, and zero over CTC for excellent, very good, good, and average, respectively. Based on the company policies, it may be inclusive or over and above the committed CTC. Accordingly, you can suggest.