Compensation optimization - thinking through each phase of your career
The call is coming – your current role, a new role – compensation review, an offer. What should you ask for? Always more – 90% of execs leave something on the table that the company was willing to give them - but let’s raise it up a level here. “Compensation” or the benefit to you could also include the title, the brand, the exposure to certain types of people. So, think of your career in 3 year “chunks”. For the next 3 years, what are you optimizing for? Is this a "final" operating role? If so, perhaps it's cash. There is nothing wrong with that. Optimizing for short term wealth creation is a very appropriate decision – but know what that means. It means your next role is not an early stage start-up. It might not be a PE-backed 6-7 year turnaround. The clock matters. Or perhaps this is the thing that sets you up for the thing. So optimization is more towards title and/or adding responsibilities and experiences that would be a gap for the step you want to take. Do you know what that gap is - you need to know why they would say no. Back to title. If you're thinking about future board/advisory work, title matters. 92% of F500 board seats last year went to former CEOs, CFOs or COOs (especially the first two). Maybe this is the chance to check the box so you have it. Maybe it’s exposure. To a board. To investors. The annuity of those relationships for what you want to do next. When you know what you are optimizing for right now, then "compensation" is the sum of many components, which each weighted slightly differently. Banff can help