Performance and Pay!

Another interesting discussion thread on Jim Heskett's forum in HBS, where I was able to voice my views. How should Pay be linked to Performance? I guess more relevant for these Indian times, where every day pay and performance seem to go obtuse, in whatever way you look at it. Some of the really talented individuals get paid zilch, while many of the so called IT Professionals (read hi-tech clerks) of these days seem to rule the roost.