Evaluate and negotiate an offer

The interview process ends with an offer - and usually room to negotiate. Offers are rarely final, and a professional negotiation almost never costs you the offer. Knowing how to evaluate one is part of doing the process well.

• Base salary: your guaranteed yearly pay.
• Bonus: often a target percentage of base, which may depend on company and personal performance.
• Equity: stock or options granted over a vesting schedule, commonly four years. Divide the grant by the vesting years for an annual value, and consider the risk for private companies.
• Signing bonus: a one-time payment, often used to close gaps.
• Benefits: retirement matching, health insurance, remote work, learning budget, leave.

A quick estimate of yearly pay: a 150,000 base, a 10% bonus and a 200,000 equity grant over 4 years comes to 150,000 + 15,000 + 50,000 = 215,000 a year.

When negotiating: express enthusiasm first, base requests on data (competing offers, market ranges for the level and location), and ask for specific adjustments. It is often easier to increase equity or the signing bonus than base salary. Get the final offer in writing. If you are asked for salary expectations early, you can give a researched range or ask to learn more about the role first.