How to Negotiate for More Compensation After Getting a Job Offer

You get a job offer. It sounds great. The compensation seems generous. Can you negotiate? Should you?

Assuming it’s a reasonably senior position, there may be room to negotiate, if done the right way.

I'm a big fan of (diplomatically, briefly) asking for more under the theory that, if done properly, it can't hurt.

What people most often forget is that compensation is not just one number - it's a Rubik's cube, with several dimensions:

·????? Salary

·????? Signing Bonus (cash)

·????? Signing Bonus (Equity Grant)

·????? Annual Bonus (cash)

·????? Annual Bonus (Equity Grant)

·????? Vacation Time

·????? Severance Pay / Severance Time (e.g., how many months' worth of pay)

·????? COBRA Time (how long after employment will they pay for your health insurance).

·????? Vesting schedule (does my equity automatically accelerate and vest if I'm laid off without cause or if the company undergoes a change of control or financing event?)

·????? Bonus schedule (Is it paid annually or 2x per year? Is it earned pro rata (if I leave in the middle of the year do I get half instead of zero?))

·????? Other perks (company car, etc.), etc.

Every company is different, but often, if they have less flexibility in one dimension, they can make up for it with more flexibility in another. Don’t be afraid to ask where they have room to give and where they don't. Assuming they give a reasonably candid answer, then you can formulate a plan what to ask for. Do not simply ask for 10% more of everything, as that will likely offend. Rather, do your best to get some intel first, then ask for more in a strategically targeted manner. And context matters - equity in a startup might have a lot more "all or nothing" potential upside in a startup than at a mature Fortune 500. What are your own personal priorities? For example, if you're young and single, perhaps you're willing to take a lower salary in exchange for even more upside potential. Only you know your priorities. And only the company can tell you theirs (e.g., "we don't have much flexibility on [salary/equity/perks/etc.], but we do have some more flexibility on [equity/perks/salary/etc.]"). Use that intel, together with your priorities, to strategically push only in the right areas.

Things to keep in mind when asking:

·????? Be reasonable. Don’t ask for double what they’re offering; stay in the same ballpark.

·????? Be diplomatic. Be nice, be friendly, ask in an appropriate way, without being demanding. It’s a request, not a demand.

·????? Be clear you’re still interested in the position, but you’re just trying to gauge if and where they might have some reasonable flexibility.

·????? Be adaptable. As mentioned above, every company is different, and they might have zero flexibility in one dimension, but slightly more flexibility in another. Follow their lead.

·????? Be brief. Be ready to drop it if you get the sense they are offended or upset. “Read the room.”

In short, don’t be afraid to ask for more, but be flexible, pay attention to their feedback, and be sure to do it in a targeted and diplomatic way.