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Measuring each individual's performance for evaluation purposes

Hi,

I'm currently working as a Scrum Master on a startup company. The company's executives are planning to give an annual increase to each individual (mostly are software developers) based on their performance. The company CTO asked me to propose a way how we can measure each individual's performance without compromising Scrum values. Basically, a performance measurement method that fits an agile team.

I would like to ask how do you do this in your organization?

Many thanks!

Everard


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