Firm Performance An Exploratory Analysis Debashish Bhattacherjee S Jairam G Ravi Shanker The advent of liberalisation has clearly changed pay conditions in the firms by making pay more sensitive to the performance of the firm, irrespective of its size. Changes in the level of sales and in the stock of all past flows of profits significantly influence the incentive pay rises. With every Rs 100 increase in either sales or shareholders' wealth, the pay of the CEO increases by 15 paise to 22 paise.
