“Paying for performance” has been the corporate mantra for ages, but finding the right performance benchmarks continues to be an enigma. Equally significant is the ongoing debate on the superiority of economic value added (EVA) aligned executive incentive plans over traditional financial performance benchmarks to ensure optimal goal congruence between the corporate and the executive performances. Consequently, this paper aims to explore a plausible linkage between executive compensation and EVA for Indian corporates from a social constructivist perspective.,The study uses a mixed method approach where the quantitative analysis of responses from the survey of senior personnel/finance executives of Indian firms is complemented by the qualitative analysis of personal interviews to provide contextual depth to the quantitative data.,Based on the study, the researchers construct an understanding that EVA is a superior concept but has restricted utility primarily owing to its computational complexity and unaudited characteristics. The researchers’ interpretive inference finds mandatory disclosure of an audited EVA figure in the corporate financial statements as a prime requirement for EVA to emerge as an objective and visible performance measure.,Attention of policymakers is sought towards standardising its computation and ensuring its disclosure to bring it at par with the conventional executive financial performance benchmarks.,The narrative on benefits and the challenges of adopting EVA aligned performance management system is provided directly by the top-level executives responsible for designing the “paying for performance” policies.

中文翻译：

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高管薪酬与EVA挂钩的社会建构：对印度公司的研究

多年来，“为绩效付费”一直是企业的口头禅，但是找到正确的绩效基准仍然是一个谜。同样重要的是，有关经济增值（EVA）的高管激励计划优于传统财务绩效基准以确保公司与高管绩效之间达到最佳目标一致的持续辩论。因此，本文旨在从社会建构主义的角度探讨印度公司高管薪酬与EVA之间的合理联系。本研究采用混合方法，对印度公司高级人员/财务高管的调查进行了定量分析通过对个人访谈进行定性分析来补充定量数据的背景深度。研究人员建立了一种认识，即EVA是一个高级概念，但主要由于其计算复杂性和未经审核的特性而限制了其实用性。研究人员的解释性推断认为，在公司财务报表中强制披露经审计的EVA数据是EVA成为客观可见的绩效指标的主要要求。寻求决策者注意标准化其计算并确保其披露能够它与采用常规EVA绩效管理系统的基准相提并论。采用EVA统一绩效管理系统的好处和挑战的叙述直接由负责设计“绩效付费”政策的高层管理人员提供。