The remuneration system is one of many elements that directly affect the success of the company. Unfortunately, there is no universal efficient system applicable to all the specifics of various types of businesses and individuals.  But there are principles which distinguish the better remuneration systems:

Principle 3. If an employee may get fired for poor performance, s/he must have the opportunity to get "rich" for top performance.

Sound corporate spirit means to create positive energy and this is only possible in the moral sphere, through the emphasis on honesty, fairness and high performance standards.

But to have any effect we must have a process.  We need best practices, not good intentions or exhortations.   To get effect this moral sphere - corporate morality - must be completely independent of people’s abilities and attitudes.  It should be a noticeable behavior - something everyone can do, see and evaluate.

Capabilities are important, not the incapability.

Here rests a man who knew how to hire better than himslef people.

Management by objectives tells the manager what to do.  Proper workflow organization allows him to do so.  But the spirit of the company determines whether the manager will execute his job.  The company spirit mobilizes human energy and devotion, the spirit determines whether a person will invest the best of himself, or put only minimum efforts.