TC negotiation strategies

New / Eng
Ama B.O

New Eng

PRE
Amazon, Google, Facebook
Ama B.Omore
Jun 11 23 Comments

What's your strategy when negotiating for a higher TC?

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TOP 23 Comments
  • Microsoft PaaS
    Hardest to easiest negotiation is base, equity, sign-on bonus.

    The base will make the biggest impact on your TC over time and companies don’t want to give you much room to negotiate because of that. Try your hardest to get the most base because it will move the needle and is guaranteed money vs equity which is determined by the stock price. It also determines your annual bonus.

    The next best item to negotiate is equity. Equity is a little more flexible because you can make the case that the base is lower than what you expected. Be sure to calculate enough equity you need (not appreciated) at grant that equals about what you would lose by taking a lower base. Additionally, don’t forget to factor in the unvested RSU at your current company that you will leave. To make the case for higher equity is to let the recruiter know you are committed to staying with the company because it takes 4 yrs to vest fully.

    After all that is done, then you lastly try to negotiate sign-on bonus. The case for sign-on bonus is to let recruiter know that this amount you want is what you will leave behind at your current employer for the annual bonus by coming to their company. Companies will gladly give you more sign-on bonus to make you happy at negotiation time and seal the deal because it is only a one time payment they need to make to you and psychologically, it makes the candidate feel like they at least got something by negotiating.

    Of course having competing offers will greatly help you negotiate the above.
    Jun 11 6
    • Microsoft PaaS
      Yes, make sure you get equity at least equal or more than you are due at your current company
      Jun 11
    • Facebook / Data
      RScP24

      Facebook Data

      PRE
      Amazon
      RScP24more
      Makes sense except for folks moving out of Amazon.
      Jun 11
    • Microsoft PaaS
      you can still calculate what will vest and ask for that. If you leave amazon after 2 yrs, you still have 80% of original grant remaining so at least ask for that amount with new company because you would have made that if you had stayed. Also take into consideration the refreshers you got. Sorry what refreshers.. this is Amazon
      Jun 11
    • Facebook / Data
      RScP24

      Facebook Data

      PRE
      Amazon
      RScP24more
      It doesn't work that way.... I wouldn't be surprised to hear Amazon sal as ... 100k base + 100k ( in shares) but when you move out... you may get 150k base + 75k shares. Regardless I get the core of your philosophy which makes sense for majority of companies.
      Jun 11
    • Facebook / Data
      RScP24

      Facebook Data

      PRE
      Amazon
      RScP24more
      PS: when I moved from Amazon, I had 80k worth shares per year for 2018 but had 40k for 2019, 0 for 2020

      It's hard to know what Amazon wanted to give me.
      Jun 11
  • Intel ColeWorld
    I don’t have much experience (2 yoe) so feel free to prove me wrong, but a good approach is to make sure you get the highest possible bonus. Like if you didn’t use a recruiter, ask for the recruiting bonus.

    Also obviously leveraging other offers, you play 2 or more companies off each other.
    Jun 11 2
    • Microsoft / Eng
      abshx

      Microsoft Eng

      PRE
      Amazon
      abshxmore
      how do you get hired without a recruiter?
      Jun 11
    • Intel ColeWorld
      Apply on the company site, get a resume to the manager from a team member.

      It’s not the most likely situation, but it’s something to consider because recruiters make a huge bonus for everyone they sign.
      Jun 11
  • Facebook dXQm00
    Having another offer is the best way
    Jun 11 1
    • Santander Bank QrMP77
      Agree, if maximizing TC is the most important aspect for you. Get yourself connected with a few solid headhunter agencies.
      Jun 11
  • Tesla InmR60
    Currently leaving Tesla but here was my strategy for doubling my TC. Get a few offers. Don't negotiate till you have them all in hand. Take your highest offer and make the company you least want beat that offee. Then continue up the chain till your offer is at its max point with the company you want. If you performed well on your interview these companies will give you large numbers
    Jun 11 2
    • Taylor Farms Batistuta
      Are you a software engineer?
      Jun 11
    • New / Eng
      Ama B.O

      New Eng

      PRE
      Amazon, Google, Facebook
      Ama B.Omore
      OP
      Have you actually tried this in the strategy?
      Jun 11
  • First side to give a comp range or expectation is at a disadvantage.
    Jun 11 2
    • Microsoft YSB4E27KH
      If asked to give your salary expectations, how do you get out of giving your side first?
      Jun 11
    • Something along the lines of, " I'm open to competitive offers."
      Jun 11
  • The best way to do this is to walk into the conversation like you dont even need the offer. The rest comes naturally
    Jun 11 0
  • Netflix nehtflicks
    I personally was not able to negotiate at all with Netflix.
    Jun 11 2
    • Netflix FoofooMoo
      Same
      Jun 11
    • New / Eng
      Ama B.O

      New Eng

      PRE
      Amazon, Google, Facebook
      Ama B.Omore
      OP
      What was their offer?
      Jun 11
  • Microsoft pterraByte
    Competing offer
    Jun 11 0