A recent PricewaterhouseCoopers (PwC) and London School of Economics (LSE) study entitled “Making Executive Pay work – Psychology of Incentives” has identified Indian executives as those that are less willing to take a pay cut for the idea job. The survey is based on 1,106 participants across 43 countries including 83 from India.
The report mentioned that while executive pay has risen considerably over the years, there is a growing factor with regards the complexity of the reward model even among the Indian executives. This is highlighted via the fact that 50% of the executives in India will pick a clearer pay package than a more ambiguous one.
To compare with other countries around the world, executives have said that they would take a 28% pay cut for their ideal job, in comparison to Indian executives with only 24% which is the lowest rate across all countries.
Padmaja Alaganandan, Executive Director–Consulting, PwC India said: "Only a limited number of executives will be motivated by highly leveraged and volatile pay packages, hence providing choice and flexibility in pay programmes is essential. Executives value deferred pay significantly below its economic or accounting value – a deferred bonus is typically discounted by around 50% over three years. However, it is the recognition that participation in Long Term Incentive programmes confers, as well as the fairness with respect to equity with peers that makes the difference."