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Also, if then a lateral joins at A2, they'll have the same base pay as other existing A2s right? I think you're conflating two different things. OP is referring to what I said above. What you're referring to is the pay disparity due to discounting of experience, which is a different matter. The person you're talking about - regardless of the fact that he joined with PQE of 4 years so should've been an SA - he joined as A2 so at least he must still be paid equal as other existing A2s right?
Also, does KCo do the same?