Ask HN: Help with offer negotiation

#1

Post by verite » Tue, Jul 22, 2014, 11:17 PM UTC

i got a job offer with a highly reputable startup with ~30 employees and a 50m valuation.

i am a software engineer with a top b.s., state school m.s., and two years of experience (in which i was very successful). i am currently unemployed; my last salary was 96k and i had 0.2% of a 40 employee / 20m valuation company.

i was offered 100k and 0.07%. i thought the equity offered was very low, and asked for 100k and 0.22%. the company came back with 106k and 0.07%, or 100k and 0.08% (i guess they want to keep their equity). they claimed that this offer is in 75th percentile of comparable companies.

i am talking to them in person tomorrow. i'm scraping salary data from angel.co at the moment. what else should i do/know?

thanks!

Re: Ask HN: Help with offer negotiation

#2

Post by byoung2 » Tue, Jul 22, 2014, 11:31 PM UTC

Where is this company located? If it's Silicon Valley, those numbers are very low. If it's Idaho, that's a different story. So we need to know that, and more importantly, we need to know what salary you want (is the $100k and 0.22% what you really want, or what you thought they'd agree to?).

First of all, I hope you didn't tell them that $96k number before they offered $100k. If so, you screwed yourself by anchoring your offer to a low previous salary.

Second, if they are even discussing salary, it means they like you and they have already mentally committed to you. Going back to the drawing board will mean weeks or months of reading resumes, interviews, negotiations, and possibly recruiting fees which will cost easily $20-40k. In that light, giving you $20k extra would be a bargain. The fact that they went from $96k to $106k proves that.

Third, I wouldn't let equity be the deciding factor (that could just be me), since it could be worth $0 (and 90% of the time it probably is).

As far as negotiating, I suggest you read this post in full: http://www.kalzumeus.com/2012/01/23/salary-negotiation/

Re: Ask HN: Help with offer negotiation

#3

Post by verite » Tue, Jul 22, 2014, 11:48 PM UTC

byoung2 wrote: post #2

Where is this company located? If it's Silicon Valley, those numbers are very low. If it's Idaho, that's a different story. So we need to know that, and more importantly, we need to know what salary you want (is the $100k and 0.22% what you really want, or what you thought they'd agree to?). First of all, I hope you didn't tell them that $96k number before they offered $100k. If so, you screwed yourself by anchoring…

Thanks for your help! I am certain that they like me -- I mean, I have an official paper offer that I can sign.

It is in Silicon Valley. I haven't disclosed salary history.

I thought they may agree to 100k and 0.2%, and/or I could use that as leverage to ask for more salary instead.

I would be happy with 100k and 0.2%, 120k and 0%, or anything scaled in between.

I had already read that post.

Re: Ask HN: Help with offer negotiation

#4

Post by verite » Wed, Jul 23, 2014, 12:41 AM UTC

verite wrote: post #3

byoung2 wrote: post #2

Where is this company located? If it's Silicon Valley, those numbers are very low. If it's Idaho, that's a different story. So we need to know that, and more importantly, we need to know what salary you want (is the $100k and 0.22% what you really want, or what you thought they'd agree to?). First of all, I hope you didn't tell them that $96k number before they offered $100k. If so, you screwed yourself by anchoring…

Thanks for your help! I am certain that they like me -- I mean, I have an official paper offer that I can sign. It is in Silicon Valley. I haven't disclosed salary history. I thought they may agree to 100k and 0.2%, and/or I could use that as leverage to ask for more salary instead. I would be happy with 100k and 0.2%, 120k and 0%, or anything scaled in between. I had already read that post.

Er, nevermind I guess. My (written) offer got rescinded.

Re: Ask HN: Help with offer negotiation

#5

Post by byoung2 » Wed, Jul 23, 2014, 2:11 AM UTC

verite wrote: post #4

verite wrote: post #3

Earlier quoted context omitted.

Thanks for your help! I am certain that they like me -- I mean, I have an official paper offer that I can sign. It is in Silicon Valley. I haven't disclosed salary history. I thought they may agree to 100k and 0.2%, and/or I could use that as leverage to ask for more salary instead. I would be happy with 100k and 0.2%, 120k and 0%, or anything scaled in between. I had already read that post.

Er, nevermind I guess. My (written) offer got rescinded.

Yeah that's probably for the best. They sound like cheapskates anyway. Next job offer, tell them you want 130k and let them offer 110k. Show them you're a team player by offering to meet in the middle on salary at 120k, but ask for more equity to make up for the 10k you're giving up!

Re: Ask HN: Help with offer negotiation

#6

Post by rgovind » Wed, Jul 23, 2014, 5:44 AM UTC

verite wrote: post #4

verite wrote: post #3

Earlier quoted context omitted.

Thanks for your help! I am certain that they like me -- I mean, I have an official paper offer that I can sign. It is in Silicon Valley. I haven't disclosed salary history. I thought they may agree to 100k and 0.2%, and/or I could use that as leverage to ask for more salary instead. I would be happy with 100k and 0.2%, 120k and 0%, or anything scaled in between. I had already read that post.

Er, nevermind I guess. My (written) offer got rescinded.

Did they take it back because of this post in hacker news or because they didn't like the higher salary request.

Re: Ask HN: Help with offer negotiation

#7

Post by logn » Wed, Jul 23, 2014, 6:11 AM UTC

verite wrote: post #3

byoung2 wrote: post #2

Where is this company located? If it's Silicon Valley, those numbers are very low. If it's Idaho, that's a different story. So we need to know that, and more importantly, we need to know what salary you want (is the $100k and 0.22% what you really want, or what you thought they'd agree to?). First of all, I hope you didn't tell them that $96k number before they offered $100k. If so, you screwed yourself by anchoring…

Thanks for your help! I am certain that they like me -- I mean, I have an official paper offer that I can sign. It is in Silicon Valley. I haven't disclosed salary history. I thought they may agree to 100k and 0.2%, and/or I could use that as leverage to ask for more salary instead. I would be happy with 100k and 0.2%, 120k and 0%, or anything scaled in between. I had already read that post.

But 100K at .2% and 120K at .0% means you value them at $10m. Their counter to you revealed they value themselves at $60m. And their valuation of record is $50m. I'd counter with .05% and $120K which they might counter with .05% and $118K.

Re: Ask HN: Help with offer negotiation

#8

Post by verite » Wed, Jul 23, 2014, 7:37 AM UTC

logn wrote: post #7

verite wrote: post #3

Earlier quoted context omitted.

Thanks for your help! I am certain that they like me -- I mean, I have an official paper offer that I can sign. It is in Silicon Valley. I haven't disclosed salary history. I thought they may agree to 100k and 0.2%, and/or I could use that as leverage to ask for more salary instead. I would be happy with 100k and 0.2%, 120k and 0%, or anything scaled in between. I had already read that post.

But 100K at .2% and 120K at .0% means you value them at $10m. Their counter to you revealed they value themselves at $60m. And their valuation of record is $50m. I'd counter with .05% and $120K which they might counter with .05% and $118K.

the salaries are yearly and the % is over 4 years

Re: Ask HN: Help with offer negotiation

#9

Post by verite » Wed, Jul 23, 2014, 7:37 AM UTC

rgovind wrote: post #6

verite wrote: post #4

Earlier quoted context omitted.

Er, nevermind I guess. My (written) offer got rescinded.

Did they take it back because of this post in hacker news or because they didn't like the higher salary request.

i'm not sure i will ever get to find out why they took it back. but i think it is very unlikely that it is this post in HN. someone would have to be checking HN very religiously.

Re: Ask HN: Help with offer negotiation

#10

Post by crazypyro » Wed, Jul 23, 2014, 4:20 PM UTC

verite wrote: post #9

rgovind wrote: post #6

Earlier quoted context omitted.

Did they take it back because of this post in hacker news or because they didn't like the higher salary request.

i'm not sure i will ever get to find out why they took it back. but i think it is very unlikely that it is this post in HN. someone would have to be checking HN very religiously.

You did provide a great amount of detail that could probably be used to identify you. Giving (real?) exact numbers doesn't help either. I would be more careful about disguising career questions in the future, even if this post wasn't the cause.