B-school freshers to get variable pay hikes up to 60 per cent

Multinationals led by investment banks could raise the variable component in salary offers to attract more B-school freshers this year with higher growth at home and recovery process under way in western economies. The variable pay portion which was around 20 per cent two years ago is expected to rise up to 60 per cent this time.

According to IIM-A director, prof Samir Barua, recruiters would offer higher compensation in performance-linked salary. He added that they may not significantly hike fixed salary, but would offer higher variable pay.

According to HR consultants, increasing number of M&As would raise chances of recruits earning more than the promised portion of variable pay. They say there would certainly be a possibility that a number of core-plus salary packages would be bagged by premier B-schools like IIMs.

According to campus officials at one of the IIMs, five to six candidates had been offered packages including variable, over Rs1 crore last year for foreign locations. The number is likely increase to 10-12 this year at that IIM. B-schools do not divulge salary figures and announcing average salay figures after the placement season.

Campus recruitments have got under way at IIM-Ahmedabad and the process and will soon begin at other IIMs next month. However, those students who had interned with corporates have been given pre-placement offers, or PPOs. The number of PPOs have gone up this year from to 60 to 80 at IIM-A and 70 to 73 at IIM-Bangalore.

Meanwhile, elated with the 11th rank for one of its programmes at the Financial Times Global MBA Ranking 2011, the Indian Institute of Management- Ahmedabad on yesterday held a press conference.