Hey, I just got an offer from a big4. Part of the compensation package mentions, monthly variable component (MVC) of 10% of my total salary.

Wanted to check, is this MVC a normal in big4 offers and how often is it actually utilised to cause the monthly salary to be reduced?

Not from big 4 but a foreign bank with mvc. Wasn't utilised even during covid. So its fairless uncommon I guess.

From what i understand in one of the big 4 with a similar compensation package, they did not reduce MVC even when covid just started to flare up. (1st half of 2020)

Reducing MVC will probably cause attrition rate to skyrocket.. so they would be wise not to do it, given most of the big 4s are facing quite bad attrition rate (according to ACRA AQI)

In fact, the one im in now is throwing "retention bonuses" and some "feel good" additional payouts...

How is kpmg able to afford 20% higher than the rest. I though KPMG has a smaller audit practice in Singapore?

They have all the prestigious big name clients

Mvc is a national strategy for wages to remain competitive during downturn so MNCs do not pull out entirely

Your guess is as good as mine.

As someone with only 1 module worth of accounting knowledge, even I know that Revenue less Cost equals Profit.

So either they must have higher revenue, lower cost due to efficiencies, or their bosses are willing to take a lower cut of profit.

if you lose people, then who is going to do the work? if no one does the work where does the money comes even if you have the projects? earn less is better than don't earn

Kpmg is smaller globally, but I don't think it is smaller in Singapore. The 20% increment will be helpful to keep people going and honestly I think all Big4s can afford to make that adjustment. Just a matter of willingness and see who makes the first move.

Ask EY. They outsource everything to Philippines team. Partner even boasted to us how some engagements were completed entirely by EY Philippines team