Compensation doesn’t just Mean Salary

When negotiating compensation there is a lot more to the equation than just base salary.  The best approach to putting a deal together is deciding if you want the job before an offer is made.  Once you have decided, troche figure out what it is going to take for you to accept their offer.  The best time to make those calculations is before the offer is made.

Compensation Comparison

Current          New                      Things to look at and
Position      Opportunity            questions to ask yourself

_________  ________Base Salary

When is your next review?
What do you expect for a salary increase?

_________  ________Bonus/Incentives

What did you make last year?
What are you on track to making this year?
What do they project you to make in the new position?

_________  ________Stock Options

Are you fully vested?
If not, what do you have in the pipeline & what  value                                 do you put on them?
Are you willing to walk away, or are you looking for                                 additional money/stock in return?

_________  ________Car

Do you drive a company car?  Value ? Do they pay for                                 your expenses?

Also, are you relocating for this new opportunity?  Then you need to look at:
_____  _______Cost of living differentials.
_____  _______Non-reimbursed moving expenses.
_____  _______Insurance Premiums

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_____  _______Property taxes (if not included in cost of living differentials.)
_____  _______State taxes (if not included in cost of living differentials.)
_____  _______Sales taxes (if not included in cost of living differentials.)

Other ways to increase your overall compensation that are negotiable.

  • A sign on bonus, to be paid in cash on your start date.
  • A performance bonus, to be paid at a specific time period assuming you meet the clearly defined and written goals.
  • A discretionary bonus, to be paid in a lump sum or over a specific period of time.
  • A generous relocation package – possibilities – pay realtor fees, pay moving cost, pay one months salary to cover all miscellaneous expenses.
  • A lump sum, for moving expenses to be used a your discretion.
  • Next review date, move it up to 6 months instead of the 1st anniversary, for a salary review.
  • Early participation in the company’s bonus, stock purchases, or pension plan or stock options.

Remember, the best time to review your financial needs is before an offer is extended.  That way you can be specific in your needs and therefore there won’t be any misunderstandings about what it is going to take for you to accept the offer.

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