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JL JobLabs

UK Recruitment Glossary

Variable Pay

Alex By Alex · 12-year UK recruiter · Updated April 2026

In recruiter context

Different roles have different variable pay structures. Sales: typically 50/50 base/commission with quota-based commission. Banking: 100-200% bonus targets at senior levels. Tech: equity grants vesting over 4 years. Senior commercial: 20-30% target bonus tied to KPIs. Crucial considerations when evaluating offers: actual achievement rate vs target (some companies pay 60% of target on average), bonus discretion (contractual vs discretionary), clawback clauses, vesting schedules. Variable pay calculated correctly often dwarfs base salary at senior levels.

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