Pay in Pearls

Our client is an Indian company dealing in precious stones like diamonds and pearls, with a turnover of over 200 crore rupees. They recently appointed a Head of Sales on a contract with fixed monthly pay plus a variable pay at year-end. The previous Head of Sales was fired due to a dip in revenues and had a cost to company of 1.2 crore rupees. The new Head of Sales is currently paid a fixed 7 lakh rupees per month, and the client wants advice on how to structure the variable pay component. Your task is to suggest the variable pay for the new Head of Sales.

Recommend an appropriate variable pay structure for the Head of Sales that aligns pay with performance and market benchmarks.