Salary Research and Negotiation Guide
Total Compensation Components
Base Salary
- The foundation—most predictable part of comp
- Usually the hardest to negotiate up significantly
- Sets the baseline for future raises and bonuses
Bonus
- Target bonus (% of base)
- Actual payout varies by company/individual performance
- Ask about historical attainment rates
Equity
Types:
- Stock Options: Right to buy shares at strike price. Worth: (current price - strike) × shares
- RSUs: Shares granted outright. Worth: current price × shares
- Profit Interest/Phantom Stock: Cash equivalent based on company value
Vesting:
- Typical: 4-year vest with 1-year cliff
- Watch for backloaded vesting (less early value)
- Refresh grants vary significantly by company
Benefits
Often overlooked but valuable:
- Health insurance: Can be $5-15K+ in value depending on family status
- 401k match: Immediate 50-100% return on contributions
- PTO: Unlimited ≠ more vacation taken
Negotiation Principles
1. Negotiate After the Offer
Don't discuss numbers until they've decided they want you. Your leverage is highest after they've invested in the hiring process.
2. Never Accept Immediately
"This is exciting. I'd like to take a day to review the full package." Even if you plan to accept.
3. Use Ranges, Not Points
"I'm looking for something in the $X-Y range" gives you flexibility.
4. Focus on Value, Not Need
"Based on my experience with [X], I'd bring [value]" not "I need more because of my mortgage."
5. Everything Is Negotiable
If base is fixed, try:
- Signing bonus
- Equity increase
- Earlier review/promotion timeline
- Title adjustment
- Start date flexibility
- Remote work terms
- Professional development budget
What's Typically Flexible
| Component | Startup | Mid-size | Enterprise |
|---|---|---|---|
| Base | ⚠️ Limited | ⚠️ Bands exist | ❌ Strict bands |
| Signing bonus | ✅ Yes | ✅ Yes | ⚠️ Sometimes |
| Equity | ✅ Very | ⚠️ Somewhat | ❌ Bands |
| Title | ✅ Yes | ✅ Yes | ⚠️ HR approval |
| PTO | ⚠️ Policy-based | ⚠️ Policy-based | ⚠️ Policy-based |
Red Flags in Offers
- Equity with no clear valuation or exit path
- "Unlimited PTO" with no usage norms shared
- Below-market base with "upside potential" promises
- High variable comp with unclear attainment history
- Vague bonus structure ("up to X%")
- Pressure to decide immediately
When to Walk Away
- Offer is significantly below market with no flexibility
- Company is dismissive of your questions
- Red flags about culture or stability emerge
- The negotiation itself feels adversarial
- Your gut says no