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Dear Mr. Ageel
As per my opinion It depend on condition of business to go with fix or performance base bonus lets take a scenario
First Scenario Company just started to gaining profit in the business but not constant rate, at that time fixed bonus will preferred because
It will not affect HR budget to much and it is easy to convince CFO for small amount.
Employee will motivated that company is bother about them even in bad profit situation
Second scenario - Company is in good condition and getting god profit at that time Performance basis preferred because
Is help to ignite the growth of company by motivation best performer and encourage bad performer
So my fried it depend on the lots of the factor to decide. if you can explain me the scenario so that I can help you
Anurag
