1. Variable Pay at Care Soft
•Care Soft, a large fast-moving consumer products company
• The Company had decided to replace its fixed
compensation system with variable pay.
•The company, which had a turnover of Rs 1,200 crore the
previous fiscal, hadn't yet moved to stock options, but it
had introduced a profit-sharing plan.
•The variable component, usually paid out annually, was
linked to the performance of both the individual and his
team.
•Understandably, individual performance had a higher
weight age than team performance.
•That apart, there were peer incentives for team and
individual performances. These rewarded performance in
kind-a paid holiday, gift vouchers, or gifts.

2. • The concept of variable pay was new to Care Soft, it had decided to
implement it at only the senior and middle management levels, apart
from shop floor workers-leaving out the junior management.
• The senior management-starting from a general manager to the CEO-had
a variable component ranging from 15-40 per cent. Those below had just
5-15 per cent in variable pay.