Bengaluru CA says don't cheer much when you are overpaid. It could be a trap
Aug 22, 2025
Synopsis
Swati Saboo, a former chartered accountant, suggests that excessively high salaries can hinder career growth. Overpaid professionals may face limited job mobility, significant pay cuts when switching roles, and difficulty reintegrating into the job market. She emphasizes continuous skill enhancement and growth opportunities as crucial for long-term career success, outweighing temporary financial incentives.
A chartered accountant who later transitioned into entrepreneurship recently offered a thought-provoking perspective on the hidden dangers of receiving a salary that is higher than market benchmarks. Sharing her views on LinkedIn, Swati Saboo, the co-founder of the digital mentorship platform FYLM, emphasized that the real career risk does not always lie in being underpaid but rather in being excessively compensated.
At first glance, the idea may sound counterintuitive, but she explained that professionals who are overpaid often face unique setbacks. These include limited opportunities to switch roles, significant salary cuts if they do decide to move, and more difficulty reintegrating into the broader job market. The problem is amplified when organizations with deep pockets deliberately inflate pay packages as a retention tool. While this strategy seems rewarding in the beginning, it eventually restricts employees, leaving them bound by what are often described as golden handcuffs.
"Some companies, especially cash-rich ones, deliberately outprice talent as a retention strategy. It works—but only until you realize you’ve been trapped in golden handcuffs.." she wrote.
The underlying message was clear: professionals should resist the urge to focus exclusively on the size of the paycheck. Instead, the real drivers of a sustainable career are continuous skill enhancement, avenues for growth, and the freedom to explore multiple career exits. These elements create compounding value that lasts far beyond a temporary financial incentive.
Her perspective struck a chord with many professionals online. Several users resonated with the notion that being underpaid may hurt financially in the short term, but being overpaid could derail long-term prospects. One commenter reflected on how many highly paid individuals in large firms, including the Big Four consultancies, often struggle to transition out despite impressive paychecks. Another user noted that while lucrative offers may appear attractive initially, without constant upskilling and developmental opportunities, such roles can become limiting. They also raised an important question about how professionals should strike the right balance between attractive compensation and opportunities for learning and growth.
Overall, the conversation highlighted an important reality of modern careers: financial rewards alone do not ensure professional success. Skills, adaptability, and strategic exits matter more in shaping a resilient, future-ready career.
[The Economic Times]
