08 · Offers & Negotiation Basics¶
Getting an offer is the end of the interview process and the start of a short, important conversation. Many candidates — especially for first jobs — accept immediately without understanding what they are accepting, or avoid asking questions for fear of losing the offer. This lesson explains the pieces of a typical offer, how to compare them, and how to negotiate politely.
Important caveats. Compensation practices, employment law, and norms differ by country, company size and industry, and they change. This lesson describes common structures and general approaches; it is not legal, tax, or financial advice. For specific questions about contracts, equity taxation, or immigration implications, consult a qualified professional in your jurisdiction. This page does not quote salary figures or statistics about negotiation outcomes, because reliable numbers depend heavily on location, role and time.
Components of a typical offer¶
Not every offer includes every item. Ask the recruiter to clarify anything that is not in writing.
| Component | What it is | Questions to ask |
|---|---|---|
| Base salary | Fixed regular pay | Is it the same across locations? When are reviews? |
| Signing bonus | One-time payment on joining | Is there a clawback if I leave early? When is it paid? |
| Annual bonus | Variable pay tied to performance/company results | Is there a target percentage? How has it typically paid out? |
| Equity | Stock, RSUs, or options | Type, number, vesting schedule, cliff, and (for options) strike price |
| Benefits | Health cover, retirement contributions, leave | What is covered for dependants? Any matching contributions? |
| Other | Relocation, learning budget, equipment, remote policy | Is it written into the offer? |
| Level/title | Where you sit in the company's ladder | What level is this? What does promotion to the next level require? |
Equity in one paragraph¶
RSUs (restricted stock units) are shares granted to you that become yours ("vest") over a schedule, often several years, sometimes with a cliff (nothing vests until a first date, then a chunk vests). Stock options give the right to buy shares later at a fixed strike price; they are only valuable if the share value rises above it, and exercising them can cost money and have tax consequences. For a private company, shares may not be sellable for years, if ever. Treat private-company equity as uncertain and value the offer primarily on components you can rely on, unless you have good reason to do otherwise.
Comparing offers¶
Put offers side by side on the same basis:
- Annualize everything: base + expected bonus + (equity grant value ÷ vesting years)
- (signing bonus spread over the period you expect to stay, or counted in year one only).
- Adjust for certainty: listed-company RSUs are closer to cash than private options.
- Adjust for cost of living and taxes if locations differ.
- Weigh non-monetary factors honestly: the team and manager, what you will learn, the technology, working hours, remote policy, visa support, commute, stability. For an early-career engineer, learning and mentorship can matter as much as the first-year number.
A simple spreadsheet with one row per component and one column per offer is enough.
A respectful negotiation process¶
- Thank them and express genuine interest. "Thank you — I'm excited about the team and the work."
- Ask for the offer in writing and for time to review. Asking for a few days to a week is normal; ask what their timeline is.
- Do your research on typical ranges for the role, level and location from sources you trust (people you know in the industry, published salary surveys, public compensation-sharing sites — each has biases, so compare several).
- Make one clear, specific request, with a reason. For example: "Given my competing offer and the scope of the role, I'd be glad to sign if we could bring the base to X" — or ask for a different component if base is fixed (signing bonus, equity, start date, level).
- Be honest. Never invent competing offers or numbers. It is unethical, and it can be checked or backfire.
- Get the final terms in writing before accepting or resigning from a current job.
Sample phrasing¶
"Thank you again for the offer. I'm very keen on this role. Having looked at the full package and my other options, I was hoping the base salary could be closer to X. Is there flexibility there? If base is fixed, I'd also be happy to discuss the signing bonus or the equity grant."
Short, positive, specific, and it gives the recruiter something concrete to take back.
Deadlines ("exploding offers")¶
Some offers come with short deadlines. It is reasonable to ask for an extension, explain that you want to make a careful decision, and mention (truthfully) if you are finishing other processes. If the deadline cannot move, decide based on what you know; do not accept an offer you intend to renege on — reneging harms your reputation and the people who hired you.
How It Actually Works¶
An offer is usually built from a range the company has set for the role and level, and the recruiter's job includes closing candidates within it. Negotiation mostly moves you within that range, or shifts value between components; a large change usually requires a different level, which is decided by interview performance and experience, not by negotiation skill. That is why asking "what level is this, and why?" can matter more than haggling over a number.
Recruiters generally expect candidates to ask questions and to negotiate politely; a courteous, specific request is a normal part of the process in many places. What damages relationships is dishonesty, ultimatums, or repeated re-opening of terms after agreement. Because practices differ by region and company, it is always fine to ask the recruiter directly: "Is there flexibility in this offer, and in which components?"
Common mistakes¶
- Accepting on the call before seeing the written offer.
- Negotiating only base salary when it is fixed and other components are flexible.
- Valuing private-company options at face value.
- Inventing competing offers or exaggerating current pay.
- Comparing offers without annualizing and adjusting for vesting and certainty.
- Resigning from a current job before the new offer's final terms are signed.
Exercise¶
Create an offer-comparison sheet template with rows for every component in the table above plus rows for non-monetary factors (team, learning, location, remote policy), and a column for your weighting of each factor. Fill it with two hypothetical offers of your own design, compute annualized values, and write the exact message you would send to ask for one specific improvement — no more than five sentences.