Full Strategy: How to Negotiate a Higher Base Salary

Cash is king. Bonuses and equity can provide significant upside, but they are inherently unpredictable, tied to performance, company results or broader market conditions outside of your control.

Your base salary is stable and guaranteed, and it has a compounding effect on your overall compensation - bonuses, raises, severance payments, retirement contributions and other elements that are calculated as a percentage of that figure can all take a hit if you come up short.

However, base can be one of the hardest elements of your compensation package to negotiate. You can't throw out an arbitrary figure and hope it sticks. Equally, internal salary bands and budgets can play havoc.

Here's how to do it.

Understand the Market

Before you wade in, you need to be crystal clear on what the market is paying. What are competing companies paying for executives in similar roles? What’s the going rate for someone with your experience and skill set?

Stay relevant - make sure your data points are from companies of similar size, industry or funding stage to make your case credible. There's no value in telling a seed-stage startup, "Well, Google pay $500k.."

Do your homework and arm yourself with as much data as you can. Having multiple data points adds far more weight than just one anecdote.

Where to get data:

• Executive compensation reports
• Industry-specific salary surveys
• Public filings for comparable roles at publicly traded companies
• Your network
• Headhunters in your niche

Note: do not rely on data from generic platforms such as Glassdoor. Their salary data can be wildly off, particularly for leadership roles.

Focus not just on the base salary but the total package, including bonuses, equity, benefits and perks, as this is all useful intel.

One thing to consider is that the company may not be fully aware of current market rates. Things change quickly, particularly in competitive spaces. Have a transparent conversation with them and talk through your market data.

For example:

"Looking at a number of recent comparable data points which I'll send over in an email, the market rate for someone with my experience in a company of your size is between $300-350k. You're at $250k, which is some way off. If you can close that gap it would be a lot more competitive."

Understand Your Value

To the company, you are an expense - a cost they must justify, particularly if you're looking for more than they have budgeted for. Make it easy for them. Your job is to demonstrate the value you bring, making it clear that you'll get them to where they want to be. A compelling value proposition revolves around taking the company from point X to point Y, showing the material impact you’ll have on their business.

For example:

"I've scaled three SaaS platforms from $1M to $50M+ ARR. This is my forte, and I can get you there. A base of $400k recognizes the demands of the work needed to do that."

Be specific and outcome-focused. By tying your achievements to outcomes that align with their strategic objectives, you shift the discussion from cost to value creation. The clearer you make the connection between your expertise and their goals, the more persuasive your case becomes. Be as succinct as possible, as they may need to sell it up the chain.

Understand Your Leverage

Extending an offer at the executive level is not done lightly, so you can assume that they absolutely do want you. But you need to understand how badly the company needs you and whether they have viable alternatives. Do they have backup options? Is the role urgent? Can they afford not to hire you?

As a savvy executive, you will have asked the right questions during the interview phase to get a clearer picture of where they stand.

If you know it was particularly close between you and another candidate, you may have less room to negotiate - they likely still have them in play and could revert to that option if needed.

On the other hand, you might be in a strong position given where they are at, meaning you can push for more.

For example:

"I know that you need to launch in Singapore by the end of the year, and I can get that done. If we can agree on $500k, I can get started within two weeks and make sure we hit that target."

Frame Your Ask as an Investment

Reframe the conversation so that your salary request isn’t a cost but an investment. Like an investment, quantify the expected ROI of hiring you.

For example:

“A base salary of $300k reflects the value I’ll bring in driving $10M in additional revenue over the next 18 months. That's a great return.”

Linking your compensation to specific outcomes creates a logical and compelling argument. It also shifts the discussion from whether you’re worth it to how the company will benefit.

Navigate Salary Constraints

Companies often have hard limitations on salary - bands tied to titles, budget caps or even just internal dynamics, i.e. you can't make more than John. Inevitably, you may hit a ceiling.

In my experience, whether or not these can be broken depends very much on the company and the authority of both the role and the hiring leader. Larger companies tend to have more rigid salary bands. Smaller companies can have more flexibility, but internal dynamics can play a bigger part. If you're dealing directly with the CEO or the board, there may be more sway.

Again, lean on your data. If their cap is way off market rate, they may not know. If they do know but for whatever reason still can't budge, then it gives you more leverage to negotiate other elements to compensate.

If there's no more room to move, suggest creative solutions. These could include:

• Title adjustments: Propose a role upgrade that fits within a higher pay band. The stars have to align here, both in terms of your ability to do that role, but also whether it will cause any disruption to the current org structure. You can also propose a promotion by a specific date, contingent on achieving certain goals or milestones.
• Expanded responsibilities: If your role spans multiple departments, advocate for reclassification to reflect its scope.
• Alternative compensation levers: Discuss signing bonuses, equity grants, or performance-based incentives like milestone bonuses to bridge gaps.

Use Competing Offers Strategically

When using competing offers as leverage, consider these key points:

1. They need to be relevant: There's no point bringing a big tech offer to a start-up if they have no chance of competing. If they don't think they stand a chance of securing you, they will likely move on to other candidates.
2. Timing is key: Negotiate up your best offer first. Bring that offer to the one below. If you can get that up, then take it back to the first one and use it to go higher still.
3. Stay committed to the opportunity: When you have multiple offers, companies need to feel like you are still interested in them and your motivations are aligned. You're in demand and they need to work for it, but if they sense a lack of interest or feel that you are using an offer just as a play to get a higher offer elsewhere, they will move on.
4. Framing matters: Competing offers are great leverage, but badly framed asks can elicit the phrase you never want to hear: "Well, I suggest you take that offer then." That immediately shifts the dynamic, and I've seen far too many executives watch their leverage disappear as they try and walk back from it. You're then on the back foot, trying to convince them that you do want the opportunity.

In my experience, the best way to frame it is to reiterate your commitment and the value you bring in getting them to where they want to be, but acknowledge the reality of a competing offer.

For example:

"I remain extremely committed to the opportunity with [X company], and I'm certain I can get you to $20m ARR. That said, the offer from [Y company] is at $350k, and with a family to consider, these decisions naturally carry weight. I'd like to explore how we can close that gap."

Collaborate for a Win-Win Outcome

Successful negotiations leave both parties feeling like they’ve gained something valuable. Focus on mutual benefit. Show the company how your compensation aligns with their strategic goals and how hiring you is a sound investment.

For example:

“$300k makes a compelling case for me to deliver the $15M revenue target over the next year, ensuring you meet your growth milestones.”

The Bottom Line

If you don't ask, you don't get. But how you ask is critical. Know the data, understand the value you bring and articulate that into a compelling case for why your salary makes a great investment. If there's a hard ceiling, use other levers to close the gap.

Ultimately, though, be prepared to walk away if the numbers don't make sense. If you're not happy with the offer, problems will compound.