MNC’s led by investment banks have come up with a new proposal to raise the variable component in salary by 60% to attract B-School freshers. Two years ago, the variable pay portion was 20%. The companies have attempted this method because of higher growth at home and recovering developed economies prompt companies to speed up deal making activity.

Whenever there are increasing chances of M&As the earnings would be raised more than the promised portion of variable pay, said by HR consultants.

Last year recruitments made for foreign countries included variable pay above Rs 1 crore and only five to six candidates were offered with these packages said by a campus official of the IIMs. However, it is expected that this year the number of recruitments would rise to 10 -12. They also said that B-schools does not announce salary figures, they only offer average salary figures after the placement season.

Moreover, IIM-Ahmadabad had begun with the campus placements and in the coming months other IIMs will also start their placement process.

Those candidates who have completed their intern with, some corporate are offered pre-placement offers or PPOs by those corporate only. It has been learnt that this year number of PPOs are higher at IIM-A from 60 to 80 and 70-73 at IIM-Bangalore.

Companies adapt to offer increased variable pay when they want to control their fixed earnings in the middle of any recession in the economy.