Pay and the offer

How executive pay is actually set

Most negotiation advice assumes the number is invented in the room. At this level it usually is not. Understanding where it came from tells you which parts of it can move and which parts were fixed months before your name came up.

The number exists before you do

By the time a senior role is being filled, someone has already written a figure into a plan. It comes from a band for that level, a budget agreed for the year, and a comparison against what similar companies pay similar people. Whoever is hiring you inherits that figure. They may have room to move inside it and they will rarely have authority to abandon it.

This is why a candidate who argues hard about base salary often wins very little and spends real goodwill doing it. The base is the most visible number and usually the least flexible, because moving it out of band has consequences for everyone already sitting in that band.

What actually moves

The bonus target and how it is measured

Often more movable than base, and much more consequential over three years. Ask what the measure is and who sets it, not just the percentage.

Equity, and its shape

Amount, vesting, what happens on a sale, what happens if you leave. The shape matters more than the headline size and is discussed far less.

The start date and the first review

A review at six months rather than eighteen is worth more than a small base increase, and costs the company nothing today.

What you are protected against

Notice, severance, treatment on a change of control. Cheap to agree while they want you, effectively impossible to add later.

Why the comparison set matters more than your last salary

A company setting a senior number is mostly asking what companies like them pay people like you. Your own last figure is one input and often a misleading one — it reflects a different company at a different size in a different year. If your previous employer paid below the market for that seat, anchoring on it repeats their mistake at your expense.

The strongest position in a pay conversation is not a demand. It is being the candidate they have already decided they want, with a clear view of what the seat is worth where they sit.

What to establish before you are asked

  • What the seat pays at companies of that size and sector, so your view is about the role rather than about your history.
  • Whether the number you are given is the band, the midpoint of the band, or the top of it. These are very different starting positions.
  • Who has authority to move it. Sometimes it is the hiring executive; often it is a committee that meets monthly.
  • What the total looks like in year three, not year one. Senior packages are built to pay out over time, and the first-year figure can be the smallest number in the deal.

The honest limit

Knowing how the number was built does not force anyone to change it. What it does is stop you spending your one moment of leverage on the least movable component, and let you ask for the things that are genuinely still open while the company is still choosing you.

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See it against your own companies

A short call, your target list, and an honest answer about whether this fits how you are running your search.