Fixed, variable, deferred: reading a BFSI offer correctly
Two offers with the same headline number can differ by lakhs in what you actually bank. Decompose before you compare.
A ₹60 lakh offer and a ₹52 lakh offer can invert completely once you open them up. Financial services compensation is engineered in layers - fixed, cash bonus, deferred stock, joining bonus, retentions - and the headline number is usually the least honest summary of it.
Decompose every offer into four buckets
- Guaranteed fixed: the only number you can spend with certainty
- Target variable: ask for the historical payout range at your level, not the target
- Deferred and equity: vesting schedule, cliff, and what you forfeit by leaving
- One-time money: joining bonuses usually carry clawbacks - know the term
The variable question that matters
"What did the person in this seat actually receive as a percentage of target over the last three years?" Target bonuses are marketing; payout history is data. A 40% target that has paid 60% twice in three years is worth less than a 30% target that pays in full.
Deferred comp cuts both ways
Unvested stock you leave behind is a real switching cost - quantify it before negotiating, because the new employer should replace it. And understand the new deferral: banks increasingly defer 40-60% of senior bonuses over three years, with malus clauses. That money is a promise, not a possession.