One question that always comes up when you begin searching for a new job opportunity is “what is your compensation?” Because this comes up every time I thought I would write a detailed blog about it.

The first piece of advice I will give is to be honest.  We have seen some real life situations were a candidate inflated their compensation in order to get a better offer.  One candidate actually received an offer and then gave notice to his current employer.   At that time the client asked to see his w-2 to verify the income he had provided to them.  After finding out the candidate inflated his salary, the offer was pulled.  As you can imagine, this was devastating for the candidate.

There are a number of components that make up someone’s compensation.  Here are the things you should know and be able to answer about your compensation;

• Base Salary (what you make on an annual basis)
• Target Bonus  (what is your target bonus on annual basis or is it paid differently from annual?  What date do you expect to receive your next bonus?  When do you qualify for your bonus?  What have been the last 3 years actual payouts for your target bonus?)
• Equity  (restricted stock, stock unit grants, stock options.  You need to know the vesting schedule.  If they are options, what is the strike price?  When do they vest?  What is the exact amount of money that you will be leaving behind if you accept another offer?)
• Retirement  (401k match – how much is the company matching, what is the vesting schedule? pension plans – how much do you have in your pension plan?  What are the ramifications of leaving your current company?)
• College Reimbursement  (has the company paid for any of your college?  If so, what are the ramifications of leaving your company?)
• Relocation Assistance  (has your current company helped you with relocation?  Will you owe money if you leave your company?)

Example:  John Smith

• Salary:  $110,000
• Target Bonus:  15% actual payouts for the past 3 years:  22%, 12%, 15%
• Restricted Stock:  500 shares given at 10/01/10. Current stock price: $30 with a 3 year vesting schedule.  John also received 500 shares the previous year and 200 shares the year before that.
• Total value:  $36,000
• 401k stock match:  matches 100% up to 3% and then 50% up to the next 3%.
• Received $15,000 toward his MBA from his employer and must pay back 50% if he leaves his company in the next 6 months.

You need to  disclose all components of your compensation early in the process or you might end up disappointed at the offer stage.  Make sure all details are accurate.  Otherwise, you might be greatly disappointed at the offer stage.

If you are considering making a career move, check out our jobs page.  There you can review a listing of all our currently open jobs.

About the Author:

Mr. Cassano has several years of executive search and consultative sales experience. He has been with the Teldar Group almost 4 years and has worked on some of the Teldar Group’s largest clients including BP, Halliburton, Kraft and Roll International. Some of the critical areas that Mike focuses on at the Teldar Group are primary recruiting, candidate qualification, negotiation of an offer and reference checks. Mike initially started his career serving in the United States Marine Corps and has visited over 30 different countries while on active duty.

All entries by Mike Cassano