Education: B.Tech Computer science(Tier -2 college)
Years of Experience: 14+ years
Prior Experience: Senior Software Architect at product based organization
Date of the Offer: Mar 2022
Company: Microsoft
Title/Level(during hiring discussions): L65 - Principle software engineer
Title/Level(Offered ): L64 - Senior Software Engineer
Location: Hyderabad
Salary: 48 Lakhs
Variable / Bonus: 7.2 Lakhs(0-30%)
Relocation: 2L
Signing Bonus: 5 + 3 Lakhs
Stock bonus: 50K USD sign on stock
Total comp (Salary + Bonus + Stock): ~1.03 Cr for first years, 56 L second year onwards****
Current Comp: ~32 Lakhs ( 38L after hike - expected in next 10 days)
Benefits: Standard Microsoft Benefits

During my Initial interaction with Microsoft hiring team I had always made clear that I would be interested in L65( Principle Engineer role).
It seems so unetihcal that after interview they have downgraded the position to L64.
The reason for downgrade as explained by HR manager during offer release was my performance in earlier rounds.
Surprisingly during my AA round (final round) the hiring manager himself told that your feedback so far has been very positive.

I feel I have been terribly lowballed by Microsoft maybe due to the fact that my current salary is low.

I am planning to decline the offer, need suggestions from leetcode members :)

Updates

After few rounds of discussion & negotiations with HR & Hiring manager they have increased my compensation, the updated figures are as follows:

Base Salary: 56L
Variable / Bonus: 8.4 Lakhs(0-30%)
Relocation: 2.5L
Signing Bonus: 5 + 3 Lakhs
Stock bonus: 50K USD sign on stock
refresher stock: 0- 45K USD anually(22.5K USD average)

Total comp (Salary + Bonus + Stock): ~1.1 Cr for first years, 85 L second year onwards*

Finally I have accepted their offer.

I would like to thank Leetcode members for the suggestions :)