Salary negotiations

[LivingAlmostLarge]

DH has a couple of job offers coming in. Any tips on how to negotiate? What to look for? One job said they pay less because they give away a lot of equity in company. Thoughts? Waiting to see paper offers, but verbal ones over the phone.

[Nutria]

they pay less because they give away a lot of equity in company. Thoughts?

1. How widely traded is that stock? (If it's a small company, then it's pretty worthless.)
2. How much equity?
3. Is there a vesting period?
4. Is there a holding period?

[LivingAlmostLarge]

Unsure right now but not small but private company going to ipo who knows.

[parafly]

You should treat it like any other negotiation. Start high and expect to meet somewhere in the middle at a number you feel comfortable with.

Have you checked out any online resources for salaries? Glassdoor is a good resource, and you should be able to find the average salary for your position in your area.

Don't forget that salary is not the only thing you can negotiate. Ask for more paid time off (vacation days). Ask for more equity in the company. Ask for a better 401K match. Ask for a day or two per week that you can work from home.

Don't be shy. It's just business.

[Nutria]

Unsure right now but not small but private company going to ipo who knows.

In the tech industry?

[LivingAlmostLarge]

yes but career switch so we're not sure if entry level quite fits. Parafly have looked at stuff but DH is very different than others with education, experience, and age. His offers are somewhat varying as well with regards to title, experience, etc.

For example a friend from his program got an offer of $125k straight out of phd program. DH is 10+ years out of phd and mba and management experience. So should he expect the same as the woman? Entry level out of program? Or is it different? She told him because their initial offer was lower and he told her to ask for more she was worth it. I'm not sure he's quite so aggressive about himself.

Glassdoor, salary, doesn't cover all these details and my DH is reticent about asking salaries. When he started this career shift he was hoping to make $125k to put into perspective what he thinks he's worth. We know what he made but he thinks the $125k is what he'll get and it's about 55% of what he made. He's willing because he hopes to make it up fast, but who knows? Very difficult situation we're in we have no idea where he belongs. I just don't think he should underprice himself now.

[Nutria]

yes

I'd research how tradeable that stock is. (If it never goes IPO then he has a bunch of worthless paper. That's fine for a 25 year old, but not so much for a 35 year old.)

[parafly]

yes but career switch so we're not sure if entry level quite fits. Parafly have looked at stuff but DH is very different than others with education, experience, and age. His offers are somewhat varying as well with regards to title, experience, etc.

For example a friend from his program got an offer of $125k straight out of phd program. DH is 10+ years out of phd and mba and management experience. So should he expect the same as the woman? Entry level out of program? Or is it different? She told him because their initial offer was lower and he told her to ask for more she was worth it. I'm not sure he's quite so aggressive about himself.

Glassdoor, salary, doesn't cover all these details and my DH is reticent about asking salaries. When he started this career shift he was hoping to make $125k to put into perspective what he thinks he's worth. We know what he made but he thinks the $125k is what he'll get and it's about 55% of what he made. He's willing because he hopes to make it up fast, but who knows? Very difficult situation we're in we have no idea where he belongs. I just don't think he should underprice himself now.

I think you will need to gauge based on the offer. This will give you the best measure in how the company views his position and role.

Asking for 10% more than the offer is a good starting point. You may end up with 5% or nothing, but it's worth a shot.

[sv2007]

Don't forget that salary is not the only thing you can negotiate. Ask for more paid time off (vacation days). Ask for more equity in the company. Ask for a better 401K match. Ask for a day or two per week that you can work from home.
.

From my experience in the tech industry working for large and small companies, PTO and 401k match is hard/impossible to change. Initial grants and sign-on bonus are extremely easy to change. Initial salary, from what I hear, is easy; but I have never attempted it except once. As to WFH, that really depends on the group you are joining; it isn't too fun to be the only guy WFH nearly full time (based on personal experience).

Other industries may be different.

[sv2007]

I'd research how tradeable that stock is. (If it never goes IPO then he has a bunch of worthless paper. That's fine for a 25 year old, but not so much for a 35 year old.)

Not entirely true; the company can get purchased, which happens pretty often.
So no IPO there, and owners still get paid.

[sv2007]

For example a friend from his program got an offer of $125k straight out of phd program. DH is 10+ years out of phd and mba and management experience. So should he expect the same as the woman? Entry level out of program? Or is it different?

Glassdoor, salary, doesn't cover all these details and my DH is reticent about asking salaries. When he started this career shift he was hoping to make $125k to put into perspective what he thinks he's worth. We know what he made but he thinks the $125k is what he'll get and it's about 55% of what he made.
.

So, if I understand it correctly, your DH (BTW, what does DH mean? domestic husband? haha, never mind, it seems to mean "dear husband". You learn something new everyday.)

So, your DH used to make $250k/yr but is taking a job that only pays $125k? Personally, I'd not make such a switch, too steep a drop. Anyway...

What field is his PhD in? What's the job?

As for glass door, when your husband gets the job offer, it should mention exactly the position, which can easily match to a pay grade, which you can use glassdoor to check salary range (take care though, some salaries reported includes bonuses and some don't; and bonuses can be a pretty high % of salary.)

I only know the tech industry; and for that $125k is pretty low for new grad PhD.

[LivingAlmostLarge]

Turns out they paid way more than he was expecting. He's probably a pessimist by nature. He's making more than he was and the potential to make more is there. Sometimes life is weird.

And now he has to name a number for one of the companies to guarantee he'll pick them (they already have a better offer total compensation, but it's bonus based not salary). He isn't sure. I think he'll go for the lower number and the company he wants, but he did ask them if they'll raise the bid so we'll see. He wants the lower number company. He thinks it's a dream job so we'll see.

[sv2007]

Turns out they paid way more than he was expecting. He's probably a pessimist by nature. He's making more than he was and the potential to make more is there. Sometimes life is weird.

And now he has to name a number for one of the companies to guarantee he'll pick them (they already have a better offer total compensation, but it's bonus based not salary). He isn't sure. I think he'll go for the lower number and the company he wants, but he did ask them if they'll raise the bid so we'll see. He wants the lower number company. He thinks it's a dream job so we'll see.

Very good to hear.

The one time I made a employment decision based purely on salary was the 1 decision I regret. It was with a company in a field that people escape from, not go back in. : )

[LivingAlmostLarge]

They gave him everything and more. Turns out they did want him and he's terribly happy. Now we just have to make his commute bearable and he'll be a happy camper.