Mint Explainer | IIT job offers get creative, but can bonuses and clawbacks hold talent?

What are companies offering? High-frequency trading (HFT) firms such as Quadeye, Graviton Research Capital, NK Securities, Quantbox Research, and Squarepoint Capital are providing performance- and joining-based bonuses to lock in candidates immediately after offers are made. Texas Instruments, for example, offers restricted stock units (RSUs) with a four-year vesting period. While joining bonuses have long been part of campus offers, analytics companies are now competing with both startups and tech giants, prompting recruiters to make their offers more lucrative and timely. What role does a clawback play? For the batch of 2026, Indian and global firms are increasingly including clawbacks in compensation structures. A clawback requires employees to forfeit a portion of their compensation if they leave the company before a stipulated period. For instance, TVS Motor Ltd’s ₹300,000 joining bonus comes with a three-year clawback. IDFC Bank Ltd, Siemens Energy, and EXL also incorporate such clauses for IIT hires. Traditionally, clawbacks are used for CXOs to address irregularities or abrupt exits, but in campus hiring, they are meant to ensure employees remain with the firm for at least a few years while enhancing accountability. Deferred bonuses and stocks as retention tools Some firms structure deferred bonuses, releasing a portion of annual wages in milestones. Publicis Sapient, for example, offers ₹200,000 after one year and another ₹200,000 after two years. Stocks are also becoming common, especially for startups competing with established HFT firms and tech companies for engineering talent. Palo Alto-based healthcare firm Risa Labs plans to recruit system engineers and associate product managers for its India and US offices, offering around ₹36 lakh in India and $150,000 in the US, plus $30,000 worth of stocks, roughly ₹1.6 crore in total. Placement cells at IITs and company sources note that stocks are a strong incentive, giving employees a sense of participating in the firm’s value creation. Startups now routinely participate in campus placements at both engineering colleges and B-schools. They offer employee stock options (Esops) and RSUs. ESOPs allow employees to purchase company stock at a predetermined price in the future, while RSUs vest only after achieving specific milestones. Will these clauses improve retention? Recruiters for the 2026 batch are especially keen on students skilled in machine learning and artificial intelligence (AI) for roles like project managers, software developers, and analysts. While deferred and joining bonuses, clawbacks, and stock options help attract candidates, they may not meaningfully boost retention. The financial stakes are relatively modest, and competitors can often match or offset any losses. Retention will likely hinge more on the nature of the work – roles where IIT graduates contribute significantly to product development and collaborate with global teams are more likely to keep talent engaged. Will these clauses apply only to engineering students? No. Older IITs such as Bombay, Delhi, Roorkee, Guwahati, Madras, Kharagpur, and Kanpur are closely watched by B-schools. While B-school profiles differ, there is overlap in recruiters. B-school graduates often have prior work experience, pushing median compensation higher, but when placements begin at B-schools in February and March, companies are expected to deploy similar strategies—bonuses, deferred pay, and clawbacks—to retain them.