The Compensation Discussion

TL;DR

Understand the various components of a compensation package, ask questions to uncover all possible options, and strategically negotiate for elements that hold more value for you.

Transcript

[MUSIC] Ask a lot of questions, because the more information you have, the more power that you will have. Compensation has a lot more elements to it, typically, than most people identify. At senior levels, a compensation package is going to have maybe as many as eight or ten major components. We tend to think about base salary, cash incentive bonus... Read More

Key Insights

• 🤘 Compensation packages at senior levels have multiple components that go beyond base salary, such as relocation allowances, signing bonuses, and equity grants.
• 😷 Asking questions about all possible elements in a compensation package can give you a better understanding of what to negotiate for.
• 🤑 It is important to identify the "soft money" elements in a compensation discussion that the company may be more flexible with, such as signing bonuses or review cycles.
• 🥺 Prioritizing negotiations based on elements that hold more value for you can lead to successful outcomes.
• 💁 Benchmarking industry standards for compensation can provide useful information for negotiation discussions.
• 😉 Negotiating for performance-based adjustments in a shorter timeframe can be a win-win situation for both parties.
• 👨‍🔬 It is advisable to do thorough research and homework before entering into a compensation negotiation.

Questions & Answers

Q: What are the various components that can make up a senior-level compensation package?

Senior-level compensation packages can include base salary, cash incentives, equity grants, relocation allowances, home buying programs, pension gross ups, signing bonuses, and special project-based incentives.

Q: How can I uncover all the possible elements in a compensation package?

When discussing compensation, ask questions about project-based bonuses, signing bonuses, option grants, relocation policies, and any other benefits that may be available.

Q: How should I prioritize my negotiations if I can't push all the levers in a compensation discussion?

Prioritize elements that hold more value for you and are easier for the company to grant. For example, if salary is non-negotiable, try negotiating for a signing bonus or a shorter review cycle.

Q: How can I negotiate for a higher upside in compensation?

Request for bigger upside on bonuses, shorter reviews, or project-based bonuses, showing that you are willing to bet on your own performance. This allows for potential adjustments based on your performance in a shorter timeframe.

Summary & Key Takeaways

• Compensation packages at senior levels can have multiple components, including base salary, cash incentives, equity grants, relocation allowances, home buying programs, pension gross ups, signing bonuses, and special project-based incentives.

• When discussing compensation, it is important to find out how many of these elements might come into play and to understand the company's policies regarding each one.

• In a compensation discussion, it is advisable to find the "soft money," meaning elements that the company can be more flexible with, such as signing bonuses, review cycles, and project bonuses.