The document provides guidance on negotiating executive compensation. It discusses preparing for negotiations by understanding your priorities, researching typical packages, and establishing your needs. It emphasizes the importance of identifying decision-makers, qualifying opportunities, building trust with stakeholders, and demonstrating your value proposition aligned with company goals. The document also examines how to handle offers and closes, and provides case studies of successful and unsuccessful negotiations, noting common factors that influence compensation ranges.

1. Negotiating Executive
Compensation
Practical Insights
Nicola James
Thomas Brooke International

2. Foundations
When & How
Who
The Offer & The Close
Case Studies: Winners And Losers
Company Dynamics
Recruiters

3. Foundations of Successful
Negotiation
“Left Brain”
Preparation
Analysis
Strategy
Clarity
Good
negotiator
balances both
“Right Brain”
EQ
Trust building
Patience

4. #1 Take ownership of the process
Do you want to
negotiate this?
Or shall
we do it
for you?

5. Involve all stakeholders

6. Acknowledge anxieties/concerns
Make sure you are in agreement

7. #2 Have a negotiation road map
Develop strategy/scenarios

8. Establish your own needs
before entering the process:
• Rank importance and priority
• Know what you’d walk away from - your “must” and
“give” items
• Do NOT assume you will have all information you want
at offer time – know what you really need to know
• Research typical packages for the position – data driven
- think real estate comps

9. Typical package components
Salary
Annual bonus
Signing bonus
Profit sharing
401(k)/pension
Long-term incentive
Stock
Equity
Relocation support
Health benefits
Vacation
Travel
Title
Promotion/succession
Contract
Severance
Non-compete agreement

10. #3 Recognize that long-term
relationship & substantive
outcome are both high value –
proceed accordingly

12. #4 Treat every interaction as part
of the negotiation process
• Research and ask questions
o Strategy
o Motivations
o Values
• Discover leverage and limits
• Build trust – ultimately you are negotiating with people, not
just corporate entities

13. When And How
To Bring Up The Subject

14. ASAP to qualify on
basics/ballparks/musts
• Identify strong opportunities
• Avoid wasting time on marginal or poor opportunities
• Position as initiator/leader

15. Who gives the first number? It
depends…
• Don’t assume it should be the company – frankness often
benefits you
• If you are significantly over/undercompensated currently, better
to lead than follow
• The Anchor number has significance

16. Ask questions - explore landscape
on the company side
• Find out what you can – every data point is useful
• Qualitative as well as quantitative
• Frame your own priorities accordingly and positively
• LISTEN and remember even the small things

17. Align with company goals/needs
• Develop/revise value proposition according to their priorities
• Show ROI – investment vs. cost. This is essential!

18. Share peripheral information such
as priorities/rank order
• Build trust by sharing without painting yourself into a corner
• Gather additional pointers about the other party’s approach

19. At preliminary/unofficial offer time
exchange “musts”
• If not already discussed, this is critical
• If already discussed, revisit/confirm
• Find out how the process needs to unfold from company side
(e.g. do they even negotiate after an offer?)

20. Who To Negotiate With

21. Always with
decisionmaker/influencer-
Never the gatekeeper!
• ID real decisionmakers and stakeholders early – not always
who you think
• OK to use gatekeeper to qualify the opportunity (qualify ≠
negotiate)
• BUT – every interaction with every person counts!

22. The Offer & The Close

23. A deal is like a seedling
• Requires nurturing/gentle handling
• Easily damaged by slight fluctuations in surroundings
• Can grow and become strong with the right conditions

24. How to handle the offer to a
successful close
• Be authentic
• Be straightforward
• Avoid last-minute surprises and additional demands/requests
• Keep all options on the table: not one at a time - need
flexibility

25. • Keep emotion out – focus on objectives
• Humor can be helpful to defuse tension – but be careful
• Remain engaged – keep dialog going
• Clarify “musts”
• Be prepared to say YES
• Be ready to say NO and walk away
• Be timely – don’t wait too long to give your answer

26. Case Studies- Winners And Losers

27. VP Sales & Marketing
Small Company
Winner
• Established clear priorities and needs at the outset
• Researched company and decisionmakers
extensively to find needs and common ground
• Tailored all interactions to support this value prop
• Demonstrated added value in the process
• Trusted
• Remained engaged in negotiations on all points
• Gave on some, held on others

28. VP Marketing
Large Company
Winner
• Established clear priorities and needs at the outset
• Provided clear evidence of past ROI in similar role
• Sensitive to matrix organization, made case to
multiple stakeholders in different ways
• Recognized there would be little room for
negotiation on major items later – established value
early
• Little substantial negotiation at the end

29. COO
Mid-sized Company
Loser
• Stated clear priorities and needs at the outset
• Provided clear evidence of past ROI in similar role
• Failed to understand true decisionmaking structure
• Had wrong assumption of spouse’s position
• Not willing to give on key requirement – did not see
big picture of opportunity
• Offer withdrawn based on concern over judgment
of risk factors

30. VP R&D
Large Company
Loser
• Unwilling to provide basic qualifying information at
outset but technical fit seemed good
• Demonstrated ROI successfully
• Unwilling to trust
• No give
• When initial preliminary offer was low, did not
engage constructively to find solution
• Offer withdrawn based on concern over cultural fit

31. When And Why Companies Stray
From Their Original Compensation
Range

32. Large Company Influence Factors
• Well informed/benchmarked on market
• More rigid comp structures
• LTI or signing bonus
• Strategic initiatives with big ROI may raise the limits

33. Small-Midsize Company Influence
Factors
• Often less well informed on market
• Sticker shock
• More flexible

34. Cultural & Historical Influence
Factors
• Entrepreneurial/PE
• Family
• Corporate/bureaucratic/centralized
• Highly regulated/government
• Public/private
• Early stage vs. established
• Parent company HQ – national culture

35. Other Influence Factors
• Function/level - flexibility may vary
• Supply/demand
• Location, COL etc.
I am uniquely
qualified to
lead your
company

36. Role Of The Recruiter

37. • Looking out for client is #1- but overall for the right match!
o Recruiter can be your advocate too
• Influence with decisionmakers
• Keeping eye on prize:
o Who can close?
o Many factors - comp is one - NEED to qualify $$
• Managing expectations – both ways
• Reputation – perceived candidate risk factors play a role
• Authentic & trusting relationship is ideal; trust but verify

38. Recap
• Take ownership
• Be prepared
• Ask questions
• Treat every interaction as negotiation
• Demonstrate relevant ROI
• Collaborate & build trust
• Balance analytical and relational aspects
• Help the recruiter help you
• Take care with the close

39. THANK YOU!
You can reach me at:
Nicola James
Managing Partner
Thomas Brooke International
www.thomasbrooke.com
nicola@thomasbrooke.com
www.linkedin.com/in/nicolacjames
(888) 896-3330 x22