Pay Mix
What is Pay Mix? Fixed vs Variable Compensation Explained
Pay mix is the proportion of total compensation from fixed pay (base) versus variable pay (bonus, commission, equity). It's expressed as a ratio like 70/30.
Typical mixes: individual contributors 85/15, managers 75/25, sales reps 50/50 or 60/40, executives 40/60 or 50/50. Junior employees tend toward higher fixed ratios. Senior leaders have higher variable.
Getting pay mix right matters for hiring. Stability-seekers reject a 50/50 mix. Performance-driven candidates find 90/10 unmotivating. The mix should match the role's nature and the talent you're targeting.