Five Things to Remember When Negotiating Executive Compensation
For many years, I have assisted clients in the negotiation of executive compensation. I have obtained, analyzed and presented compelling arguments based on comparative compensation data. I have worked with Compensation Committees and compensation consultants.
Over the years, I have shared the following with my clients:
- Compensation negotiations are competitive sport, and you are a competitor. Embrace that.
- Keep the focus on the business case, and away from what you “need” or what is “fair” to you or others.
- The Business Case: What is best for the company and what is best for you are aligned. Appropriate compensation sends a message of Board / company confidence, and allows you to lead with authority.
- Identify and listen to supporters, and not to people who have something to gain from holding you back or putting you down.
- Be a good sport. Do not humiliate anyone or let yourself be humiliated. For this to work long-term, everyone has to leave the field feeling good about the game.