Negotiating a job offer in California? A few tips (esp valid for tech): 🧵
1. You can ask for the range of your position’s compensation. The company is legally compelled to give you those ranges. Also true if you already work at a CA company.
1. You can ask for the range of your position’s compensation. The company is legally compelled to give you those ranges. Also true if you already work at a CA company.
2. CA companies can’t ask you for your previous job compensation. That’s to avoid being anchored by low wages in past jobs.
The best recruiters will simply ask you what’s your compensation expectation. That’s a good time to ask for ranges.
shouselaw.com/ca/labor/discr…
The best recruiters will simply ask you what’s your compensation expectation. That’s a good time to ask for ranges.
shouselaw.com/ca/labor/discr…
3. Know the market. Look for comp in similar jobs. Comparably is one of many resources. Just Google it.
4. Have a BATNA (best alternative to a negotiated agreement). Tour negotiation power comes from the fact that you can walk away, and you can only do that if you have good alternatives. So get them. Interview in many places, even if you really want just 1 company
5. Sometimes you’ll have an exploding offer (Eg, only until Monday at 5pm PST). They have good reasons to exist for companies:
- limits the time a position is on standby, waiting for the candidate to decide
- accelerates decisions and makes BATNAs harder for the candidate
- limits the time a position is on standby, waiting for the candidate to decide
- accelerates decisions and makes BATNAs harder for the candidate
But they have no upside for a candidate. Usually know that companies are ok passing an exploding deadline if they really care about hiring you. So you should only be concerned about a deadline if for the Co you are exchangeable (not a good sign)
6. Tech pays well, but fortunes are made of stock, not cash comp. I’m shocked how little ppl know how to value stock options.
The key is to ask the # of fully diluted shares of the co. Then divide your # of options by that #.
The key is to ask the # of fully diluted shares of the co. Then divide your # of options by that #.
Eg 100k options out of 100M fully diluted shares ➡️ 0.1% of the company.
Now you just need to make your best guess on the future value of the company to know how much stock they’re offering. Eg unicorn ➡️$1B➡️your options will be worth ~$1M
Now you just need to make your best guess on the future value of the company to know how much stock they’re offering. Eg unicorn ➡️$1B➡️your options will be worth ~$1M
(Note there are some caveats. Eg you will get diluted. Look at standard dilution for companies at your stage. Also taxes and exercising cost.)
What other tips do you have?
What other tips do you have?
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