Will Companies Be Scared Off By Your Salary?

The quick answer is Yes!  However, it depends how you answer the question.  Most will try and avoid it and give reasonable answers like: “well, it all depends where it is located”  or  “I would need to know what my duties would be”  or  “what are your expectations for the business?”  These are legitimate responses but will not satisfy those who ask the question.  The potential employer still needs a number - so give them a number.  In the first few months of 2009, I have had clients earning over $1 million and several more over $500K.  How do we handle it so as not scare off a potential employer? Firstly, remember what John S. Reed, the former Chairman and CEO of Citibank, once said,: “Money is Information.”  Therefore, if you earn a lot of money, the assumption is that you are a high performer and worth it (you are innocent until found guilty).  Why hide your light under a bushel?  Furthermore, we would all agree there are plenty of high earners without jobs who would be happy to get a good job at lower comp. The question is not what's wrong with him or her, but rather, will they leave as soon as the economy turns?  Therefore, it is important to presage a response by suggesting in subtle terms “I am looking for some place I can stay the next 10 years or so and be happy in my work.” And here’s my point:  HOW you say it is more important than WHAT you say. “Jeff, my cash comp typically comes in two parts:  a base salary and a performance-related bonus.  I live off my base salary which last year was $225K and I do my best to save my bonus.  In 2008 I was lucky, we all had a good year and my bonus was $550K.  The year before I had a bonus of only $100K; we lost a chunk of money in Asia.” Or “When I joined the company I asked for a base of $250K and said I would really only be interested in eventually acquiring equity.  My first year I got a bunch of options and a modest bonus - $100K.  In my last year I cashed in my options when I left and my W2 was $1.5 million.  We all did well that year.  In other words I am more interested in a long term arrangement.  Why?  Because if I have the opportunity to turn around the business, you will be happy to pay me what I am worth and do your very best to make sure I stay.  Right now I recognize cash may be tight and I would be happy to discuss a $20K a month to start.” Or “I am used to working on a base plus bonus.  I am fully aware the industry is suffering and I know what I earned in the past will not easily be achieved today.  I don’t expect it to be.  Last year I had a base of $300K and a bonus of $300K.  The previous year my bonus was $100K.  Where I to join your team, I would be the first to recognize that my salary will have to be justified by my performance.  Why don’t we discuss my coming on board for $20K a month for 6 months?  After I have demonstrated my worth, we could firm up something for the long term – something that suits both of us.”  Remember: It’s not what you say – it’s how you say it 2009-06-04T15:36:40Z