While richly compensating employees, consultants and/or people providing you with material non-public information for jobs well done is probably the biggest factor in encouraging performance, a good manager knows there are other important ways to motivate people. As a Wharton grad, Raj Rajaratnam knew full well the benefit of patting lessors on the head to make them feel like a valuable member of the team so they continue to strive for your approval and affection. Take Anil Kumar. In 2006 he informed Raj of AMD's plans to acquire ATI Technologies, in a project that was code-named 'Supernova' and 'Go Big.'
Initially, the Galleon founder almost didn't believe the tip. "This is completely ridiculous, it makes no sense. … Are you absolutely sure?'" Kumar, testifying Monday, said Rajaratnam told him. Once Kumar confirmed it was true, a grateful Rajaratnam told him, "Wow, this is really useful." And then later:
After the deal was announced, Mr. Kumar said, Mr. Rajaratnam told him, "We're all cheering you right now. … He said something like, 'You're a star, or you're a hero."
Anyone with a cash cow on their payroll would be wise to take note.