Judith Cushman & Associates

Retained Executive Search in Communications

The Word “Package” is Taking on New Meaning

Offers are becoming far more complex with base salaries (for the senior positions) just one piece of the total package. Here is a checklist.

Base salary: How does it compare with similar jobs?  What are cost of living considerations in the area?

Stock Options: This is a whole new world where companies are shifting to less stock and/or options in favor of cash.  Generally stock is discounted in an offer.

Sign-On Bonus: What is that intended to offset?  Are there losses due to bonus/stock forfeiture that the sign-on bonus should “make whole?”  Are there personal expenses, e.g. health costs, family travel, spousal income loss that should be factored in?  When is it paid?

End of Year Bonus: Does the company offer cash awards?  What is the formula for maximum/minimum gain?  What has been the history?  Does the formula allow for over 100% of bonus if the targets achieved are over goals?  (In a few companies bonuses can double based on company/individual performance.)  In the offer letter, will the company guarantee a minimum bonus level?

Relocation: Is there a cash settlement offered (on a net or gross basis?) to cover relocation costs?  Does the company offer housing assistance?  Home purchase?  Realtor Fees?  Temporary Housing (for what period of time?)  If housing costs are burdensome due to local market differentials, will the company offer any assistance in the form of loans, etc.?

Termination Clause: If you leave voluntarily within a specified period of time, will you be obligated to return any of the relocation budget or relocation fees?  In the event of a change of control and loss of employment within a specified time period (due to no fault of your own) will there be a financial settlement, such as salary continuance, for 120 days?  

Performance Review: Will the hiring organization confirm in writing that there will be a review program within a specified period of time with the potential for a salary increase?

Vacation: Vacation in lieu of cash incentive (if you have earned 4 weeks in a prior job and want time off – in a new job can this be negotiated?) 

And, finally, always have the offer in writing with all terms and special agreements spelled out before resigning.

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