When it comes to executive compensation discussions, setting clear expectations and having an open conversation is essential. As someone who has coached numerous executives through these talks, I’ve seen how a direct, honest approach can benefit both the executive candidate and employer.
Why Compensation Discussions Matter
The idea of flying cross country for an interview without a clear understanding of basic compensation intentions is outdated. Today, executives and employers alike value transparency and directness. Compensation discussions should no longer be viewed as taboo or avoided; in fact, addressing them early is respectful and proactive. It helps avoid misalignment and saves time and money by clarifying if a position meets the financial needs and career goals of the executive candidate.
Setting the Stage: Key Questions to Ask
To have an effective conversation, executives should consider asking the following questions early in the interview process:
- What is the budgeted compensation for this position?
Getting a sense of the budget range helps executives understand the employer’s framework and if it fits into their expectations. - What is the total compensation package?
Total compensation often includes much more than a base salary. Asking about bonuses, equity, and other perks offers a fuller picture of the financial and non-financial rewards tied to the role. - Are there bonuses or other incentives?
Incentive structures vary widely and can add significant value. Clarifying this early helps set realistic expectations. - Is equity included?
For many executives, equity stakes are a key part of compensation. Knowing whether there’s an opportunity for equity and what that entails can be a deciding factor. - How flexible is the package?
Understanding whether there’s flexibility in the compensation package provides a basis for negotiation, especially if certain elements don’t fully align with the executive’s expectations.
Moving Forward with Confidence
When executives and employers approach compensation discussions transparently, they create a framework for a positive partnership. There’s no need for ambiguity or hesitation—open conversations allow both parties to gauge if the role is a fit both financially and professionally. In today’s hiring landscape, proactive compensation discussions are not just welcomed but expected.