Table of contents

CEO & Co-Founder: Proven Negotiation Scripts for a Higher Salary

Negotiation Scripts for CEO & Co-Founder

As a CEO & Co-Founder, you’re constantly negotiating – with investors, employees, vendors, and clients. But winging it can leave money on the table or damage relationships. This isn’t about being cutthroat; it’s about getting the best outcome while maintaining trust and respect. This guide provides proven negotiation scripts tailored for your role, ensuring you’re prepared for any situation. This is about confident negotiation, not aggressive tactics.

What you’ll walk away with

A recruiter screen script to anchor salary expectations from the first call.
A post-interview leverage script to highlight your value and justify your salary ask.
An offer stage negotiation script to counter effectively and break down compensation components.
A pushback handling script to address concerns about budget limitations or internal equity.
A final decision script to confidently communicate your walk-away point (BATNA) while remaining professional.
A concession strategy outlining what to trade (and in what order) during negotiations.
A BATNA (Best Alternative To a Negotiated Agreement) plan to define your walk-away terms.
A compensation components explainer relevant to CEO & Co-Founders (base, bonus, equity, benefits).
A negotiation math section with examples of how to evaluate total compensation and compare offers.

What a hiring manager scans for in 15 seconds

Hiring managers quickly assess your negotiation skills by looking for specific signals. They want to see if you can advocate for your needs while understanding the company’s constraints.

Clear understanding of market rates: Shows you’ve done your research and know your worth.
Justification of salary expectations: Demonstrates your ability to articulate your value proposition.
Preparedness to discuss compensation components: Suggests you’re financially savvy and understand the total package.
Professionalism and respect: Indicates you can maintain positive relationships even during tough negotiations.
Ability to compromise: Shows you’re willing to find mutually beneficial solutions.
Confidence and assertiveness: Demonstrates your belief in your abilities and value.

The mistake that quietly kills candidates

Accepting the first offer without negotiation is a common mistake that signals a lack of confidence and potentially leaves money on the table. Hiring managers often expect some negotiation, and failing to do so can be perceived negatively.

Use this after receiving an offer.

Subject: Offer – [Your Name] – CEO & Co-Founder

Thank you so much for offering me the CEO & Co-Founder position. I’m very excited about the opportunity and our conversations thus far. Before accepting, I wanted to discuss the compensation package. While the base salary of $[Base Salary] is a good starting point, given my experience in [Relevant Industry], demonstrated success in [Specific Achievement with Metric], and understanding of the current market, I was targeting a base salary of $[Target Salary]. I am also interested in discussing the equity portion in further detail. I’m confident I can bring significant value to [Company Name], and I’m eager to find a mutually agreeable arrangement.

Recruiter Screen: Anchoring Salary Expectations

The initial recruiter screen is your first chance to set the stage for salary negotiations. Avoid giving a specific number too early, but provide a range based on your research and experience.

Use this during the initial recruiter call.

Recruiter: What are your salary expectations for this role?

You: Thanks for asking. Based on my research for CEO & Co-Founder roles in [Industry] with a company of your size, and considering my experience in [Relevant Skill 1] and [Relevant Skill 2] that led to [Quantifiable Result], I’m targeting a range of $[Lower Range] to $[Upper Range] in base salary. I’m also very interested in learning more about the bonus structure and equity potential at [Company Name]. Is that range aligned with your budget for this role?

Post-Interview Leverage: Highlighting Your Value

After a successful interview, reinforce your value and justify your salary expectations before receiving a formal offer. This shows you’re serious about the role and confident in your worth.

Use this in a thank-you email after a strong interview.

Subject: Thank you – [Your Name] – CEO & Co-Founder Interview

Dear [Hiring Manager Name],

Thank you again for taking the time to speak with me today about the CEO & Co-Founder position at [Company Name]. I enjoyed learning more about [Company’s Mission/Project] and believe my skills and experience in [Relevant Skill] would be a valuable asset to your team. In particular, my experience in [Specific Achievement with Metric] aligns directly with the challenges you outlined. As we discussed, I’m targeting a base salary in the range of $[Lower Range] to $[Upper Range], and I’m excited about the potential to contribute to [Company Name]’s success.

Offer Stage: Countering Effectively

When you receive a job offer, don’t be afraid to counter if it doesn’t meet your expectations. Frame your counter-offer as a request, not a demand, and provide a clear rationale.

Use this when responding to an initial offer.

Dear [Hiring Manager Name],

Thank you for offering me the CEO & Co-Founder position. I’m very excited about the opportunity to join [Company Name]. I appreciate the offer of $[Offered Salary], but after carefully considering the responsibilities of the role, the current market value for CEO & Co-Founders with my experience, and the specific value I bring to the table – particularly my track record in [Specific Achievement with Metric] – I was hoping for a base salary closer to $[Target Salary]. I am also very interested in discussing the equity potential. Would you be open to revisiting the offer?

Handling Pushback: Addressing Budget Limitations

Be prepared for hiring managers to push back on your salary expectations due to budget constraints or internal equity concerns. Acknowledge their concerns, but reiterate your value and explore alternative compensation options.

Use this when a hiring manager pushes back on your salary ask.

Hiring Manager: We’re very impressed with you, but the salary you’re requesting is above our budget for this role.

You: I understand. I appreciate you being upfront about the budget limitations. While salary is important, I’m also interested in the overall compensation package and the long-term potential at [Company Name]. Are there any other areas, such as equity, performance-based bonuses, or a sign-on bonus, where there might be flexibility to bridge the gap?

The Final Decision: Communicating Your Walk-Away Point (BATNA)

Know your BATNA (Best Alternative To a Negotiated Agreement) and be prepared to walk away if your minimum requirements aren’t met. Communicate your decision professionally and respectfully, leaving the door open for future opportunities.

Use this to communicate your final decision if the offer is unacceptable.

Dear [Hiring Manager Name],

Thank you again for your time and consideration. After careful reflection, I’ve decided to respectfully decline the offer at this time. While I’m very impressed with [Company Name] and the team, the compensation package doesn’t align with my current needs and long-term career goals. I wish you all the best in finding a suitable candidate. I hope our paths cross again in the future.

Compensation Components: Understanding the Total Package

Don’t focus solely on base salary. Understand the various components of the compensation package and how they contribute to your overall earnings.

Base Salary: Your fixed annual salary.
Bonus: Performance-based incentives, typically paid annually or quarterly.
Equity: Ownership in the company, typically in the form of stock options or restricted stock units (RSUs).
Benefits: Health insurance, retirement plans, paid time off, and other perks.
Sign-on Bonus: A one-time payment to incentivize you to join the company.

Negotiation Math: Evaluating Total Compensation

Use math to compare offers and understand the true value of each compensation package. Calculate the total value of each offer, considering base salary, bonus potential, equity, and benefits.

Estimate the value of equity: Research the company’s valuation and potential for growth.
Factor in the cost of benefits: Consider the value of health insurance, retirement plans, and other perks.
Calculate the total annual compensation: Add up all the components to compare offers apples-to-apples.

Concession Strategy: What to Trade (and in What Order)

Develop a concession strategy to guide your negotiations. Identify which aspects of the offer are most important to you and which you’re willing to compromise on.

Prioritize your must-haves: Identify the non-negotiable aspects of the offer.
Identify areas for compromise: Determine which aspects you’re willing to trade for other benefits.
Develop a concession ladder: Outline the order in which you’ll make concessions.

BATNA Plan: Defining Your Walk-Away Terms

Your BATNA (Best Alternative To a Negotiated Agreement) is your plan B if negotiations fail. Knowing your BATNA gives you confidence and leverage during negotiations.

Identify alternative job offers: Keep your options open by interviewing with multiple companies.
Assess your financial situation: Determine how long you can afford to be unemployed.
Define your minimum acceptable offer: Set clear boundaries for what you’re willing to accept.

What strong looks like

Knowing your worth and being able to articulate it with data.
Being prepared to walk away if your needs aren’t met.
Maintaining professionalism and respect throughout the negotiation process.
Seeing negotiation as a collaborative process to find a mutually beneficial outcome.

FAQ

How do I research salary ranges for CEO & Co-Founder positions?

Use online resources like Glassdoor, Salary.com, and Payscale to research salary ranges for CEO & Co-Founder positions in your industry and location. Also, network with other CEO & Co-Founders to gather insights on compensation trends.

What factors should I consider when evaluating a job offer?

Consider the base salary, bonus potential, equity, benefits, company culture, growth opportunities, and work-life balance when evaluating a job offer. Also, assess how well the role aligns with your long-term career goals.

How do I respond to a lowball offer?

Express your disappointment politely but firmly. Reiterate your value proposition and provide data to support your salary expectations. Be prepared to walk away if the employer isn’t willing to negotiate fairly.

What are some common negotiation tactics used by employers?

Employers may use tactics such as anchoring, budget constraints, and internal equity concerns to try to lower your salary expectations. Be prepared to counter these tactics with data and confidence.

How do I handle a situation where the employer refuses to negotiate?

If the employer refuses to negotiate, assess whether the offer is still acceptable to you. If not, respectfully decline the offer and move on to other opportunities. Don’t settle for less than you deserve.

Should I disclose my current salary during negotiations?

In many locations, it’s illegal for employers to ask about your current salary. However, if you choose to disclose it, be prepared to justify your salary expectations based on your value and the market rate for the role.

What is the best time to negotiate salary?

The best time to negotiate salary is after you’ve received a job offer, but before you’ve accepted it. This gives you the most leverage to negotiate the terms of the offer.

How do I negotiate benefits?

Research the typical benefits offered by companies in your industry and location. Identify which benefits are most important to you and be prepared to negotiate for them during the offer stage.

What if I have multiple job offers?

Having multiple job offers gives you significant leverage to negotiate. Use the other offers to increase your salary expectations and improve the terms of the offer you want most.

How do I handle a counter-offer from my current employer?

Evaluate the counter-offer carefully, considering your reasons for wanting to leave in the first place. Don’t accept a counter-offer unless you’re confident it will address your concerns and align with your long-term career goals.

What are some red flags to watch out for during salary negotiations?

Red flags include employers who are unwilling to negotiate, who pressure you to accept an offer quickly, or who make promises they can’t keep. Be cautious of these red flags and be prepared to walk away if necessary.

Is it okay to ask for more vacation time?

Yes, it is perfectly acceptable to negotiate for more vacation time, especially if it is important to your work-life balance. Be prepared to justify your request and be willing to compromise if necessary.