Tech Salary Negotiation:
The playbook insiders already use

There's a lot outside of salary that forms your total compensation package. Your "total comp" includes at least:

• Base salary — the money you're paid every pay period. This is the foundation. It's also the most visible line item in a budget, which means it's often the hardest to negotiate.
• Equity — ownership stake in the company. At senior levels, this could easily be half your total comp or more. It vests over 4 years with a 1-year cliff (you get nothing if you leave before year 1).
• Benefits — in the US, health insurance alone can easily cost your employer $500-1000/month. Benefit packages also include things like vacation days, free food, and other perks. This is (mostly) not taxed, so you'd rather have these benefits than the equivalent in cash.
• Annual bonus — percentage bonus on top of your salary based on performance, common only with public companies. The recruiter will likely quote you a "target bonus" (e.g. 15%), which is what you can expect if you meet expectations. Generally also comes with additional equity (a "refresher").
• Signing bonus — one-time bonus paid out either when you sign or the day you start. Might come with a clause that you must pay it back if you leave after X months. Quite common in large tech companies, can be anywhere from $10k–$100k. Highly negotiable.
• Other perks — a whole suite of one-time or ongoing cash perks, like relocation package, phone stipend, commuter benefits, car allowance, etc.

The biggest input that controls comp is "level", a number that expresses your seniority. For example, level E3 at Facebook is new grad, E4 is for hires with a few years experience and so on, up to E9 (after the first few levels, experience becomes less important).

The more expensive/higher level you are, the more complex your comp mix becomes and the more it'll skew towards equity.

First, delay the salary conversation until both of you are convinced this is the right job. Never, ever share your previous salary. In California and many other US states, it's illegal for an employer to ask about your current salary.

They can still ask about your salary expectations or salary requirements (and often will early in the interview process). Respond politely but firmly that you're not comfortable sharing at this stage.

The offer call: A fact-finding mission

At some point, the recruiter will let you know they would like to extend an offer and schedule a call. It might not be made explicit, but this is the money conversation. For you, this is going to be a fact-finding conversation.

Share your excitement about the new job, but control every urge to react to the numbers, share your previous salary, argue or try to make your case. If the salary offer is higher than you expected, don't act surprised or let it come across.

Our goal is to collect information and retreat to a place where we analyze all the details with a cool head. Follow up with these questions:

1. 1

   What level is the job offer?

   What are the requirements for this level vs. the level above it?

2. 2

   What is the salary band for this level?

   This is 100% a reasonable thing to ask. In California, an employer must legally provide this if asked.

3. 3

   How much is the equity worth currently?

   You can also ask: what percentage of the company does the equity represent? What is the valuation?

4. 4

   What is the vesting schedule?

   Is there a 1 year cliff? Are there quarterly vesting deadlines I should know about? Confirm whether the equity was quoted per year or over 4 years.

5. 5

   For options: what is the strike price?

   How long after leaving do I have to exercise the options?

That's it. Thank them, express excitement, and ask for 48 hours to review.

The biggest lever that controls compensation is level. Each level has a salary range and they overlap: if level 4 is $125k-$155k, level 5 might be $145k-$160k. There are separate bands for base and equity.

However, a higher level isn't just a free higher salary: it comes with higher job expectations. It's better to be on the high end of lower level band. You should target a level you're confident you can be promoted within 1 year and target the higher end of the band.

How to argue for a higher level

For smaller companies and non-technical roles, you'll have more leeway. The key is to connect your experience directly to their level requirements:

Good salary negotiation isn't an adversarial game of counter-offers — make it clear you're a team working together to overcome a common hurdle.

Negotiate for the upper end of the band

Once you're convinced level is right, you need to negotiate compensation. Target a total compensation number that's in the upper half of the band for your level.

Once you have your number in mind, be firm and specific. Only negotiate if you mean it: you should be genuinely willing to commit if the other side can get to your number. If you still have reservations about the company, deal with that first: you're not ready to negotiate.

The most reliable way to get more money is through competing offers. Consider interviewing with your 2nd or 3rd tier choices or getting a counter-offer from your current employer.

The order of flexibility

If you can't get what you want, offer to shift between compensation components but don't back down on total compensation. In order of difficulty:

1. 1

   Signing bonus (Easiest)

   One-time cost, doesn't affect ongoing budget. Most flex here.

2. 2

   Equity

   Not cash today, so easier to approve. Some companies prefer this.

3. 3

   Base salary (Hardest)

   Ongoing commitment, affects internal parity. Least flexibility.