Since your skills, experience and past success have made you attractive to other companies, you may be considering an opportunity to move to a CEO or C-level position in another company. If negotiations are still in the early stages, you have much to consider when it comes to the kinds of benefits you would like in your executive compensation package. Your employment contract will deal with more than just the amount of money on your paycheck, and you will want to be well prepared to pursue what you deserve.
To begin with, many companies use standard metrics for arriving at salaries, bonuses and other considerations for executives. However, if your employment involves special circumstances, you may have some bargaining power you will want to take advantage of.
What are you worth?
This is unquestionably a difficult economy, and many companies are downsizing, reorganizing and finding creative ways to compensate their employees. However, you still have the right to seek the compensation that is fair and justifies the sacrifices and risks you may be taking by leaving one company and coming to another. Additionally, some circumstances may justify seeking a compensation package that goes beyond the standard offer.
For example, you may seek customized compensation if you have unique skills, contacts or experience that you are bringing to the table. On the other hand, if the company is calling on you to reverse its downward trend, special consideration may be merited. If the company that is courting you is in its early stages, it may not have the capital to offer you a salary commensurate with your executive level. Therefore, you may seek other kinds of compensation to make up the difference, including:
- Benefits that match or surpass what your previous employer offered
- Salary that is at least what you made at your previous employer
- A sign-on bonus and incentive awards
- An attractive equity position in the company
- Phantom stock, in which you do not actually own shares of the company but reap the same stock benefits
- Protections against stock dilution if the company decides to increase shares
- Termination provisions and a severance package
Negotiating a decent executive compensation package involves convincing a new company that you are worth it. This means reminding them of your qualifications, your unique skills and the potential success your presence on the team offers to the company. A successful negotiation may result in you receiving compensation that meets or exceeds your demands.