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Negotiating Pay Post Corporate Acquisition
Along with a retention bonus and conversion of equity, one of the most important components of your compensation package to negotiate following a corporate acquisitions is salary. If you are acquired by a large, public company, then you should expect a competitive salary, a reasonable retention bonus, and a combination of cash-out and new stock to keep you strategically aligned.
If you are acquired by another smaller company then your salary may be lower but fair for the size of the company. The acquisition price is independent of your salary and should be treated as such. Therefore, your salary should be based on the market rate for your skills, education and position. So how does an acquired employee negotiate pay after a corporate acquisitions?
As you are negotiating your pay, ensure that there are escape clauses if your liquidity depends on a promised ...
... liquidity event. Also if earn outs depend on anything outside of your control, make sure that if those events do not occur, your earn out goals are adjusted accordingly.
The best way to negotiate a salary after a corporate acquisitionsis to conduct salary comparison research for your position and request an amount that is in line with market rates. One of the best places to find information about salary comparisons is a finance forum. There, you can network with professionals who work in your industry and read valuable content relevant to your query.
Finance forums have areas dedicated to your area of expertise. You can ask industry professionals for insight into the market pay rates for your level of experience. Consider the pay range you’re willing to accept with this information in mind. Make sure you take into consideration the level of experience and required education in your salary comparison.
If your salary request is not accepted, you may need to become much more aggressive on the escape clauses and dramatically shorten the vesting schedule. Many acquiring companies realize that acquired staff will be quick to leave if they are not valued as employees post-acquisition.
Don’t discount the other kinds of value a larger company can provide. Salary negotiations is an opportune time to explore other forms of compensation such as a different position, a more flexible work schedule and more vacation days. For more tips on thriving during a corporate acquisitions, visit Proformative.com, your ultimate resource for everything financial.
Proformative is a free, open and independent community of corporate finance, accounting, treasury and related professional interested in finding professional resources, sharing knowledge, and getting work done. To find out more about acquisitions, go to Proformative.com to learn from finance experts and get involved in Proformative.com’s finance, accounting and treasury-related groups and forums.
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