We all know that even though there has been progress towards gender equality, women & non-binary folks are still being paid less than men for the same roles. It sucks. 

At Leopard, we’ve helped hundreds of candidates negotiate at the final stages and want to help everyone (really, just DM Leopard’s Co-Founder and CEO Lexi and she’ll reply and give you tips!). Our advice usually comes down to a couple of key things: 

• 🌐 Get Informed: We recommend watching our Co-Founder and CEO Lexi talk about Startup Equity Negotiation for Software Engineers with Jean Lee of Exaltitude. We find that it helps a lot of candidates in the network get their “sea legs” before diving into live negotiations. If you want Lexi’s help strategizing please watch this first!! 

• 📊 Do your Research: Getting what you want usually comes down to well-researched leverage. You can use compensation data, but there are lots of other ways you can communicate your market demand; unique skills, startup experience, zero-to-one experience, prior domain experience, project experience, etc.  See the Leverage section for ideas and examples. 

• 😇 Be Reasonable: We see negotiation go best when you aren’t just throwing random asks out there to see what sticks (of course go for it if you want, but it’s not our style). We try to frame negotiation around “reasonable” asks, like “Could I be re-leveled at the 90% of the range given my experience with XYZ.” More ideas below for reasonable asks. 

• 📝 Be Concise: List all of your asks at once versus piling them on as you go in multiple emails, if that includes benefits, signing bonuses, start dates, vacations, etc. 

• ⏰ Be Timely: We only see offers rescinded when people go dark, miss key deadlines, etc. Keep communicating about your deadlines (with excitement!) while driving home your key points, and you’ll come across as professional and hopefully get what you want!

Remember: Negotiation is a normal part of the hiring process, and most companies expect candidates to negotiate! So get informed, do your research, be reasonable, concise and timely and you’ve got this <3 

💸 Compensation Research

Getting your hands on good compensation data can be tough. Many companies pay for this information via compensation databases like Pave and Option Impact, and then that same data is not typically available to candidates. 

We’ve aggregated a few of our favorite links and resources from around the web in this blog post. Keep in mind that these are just general ranges and actual salaries can vary depending on the company, location, and your own experience level.

Salaries

Ranges we see in the Leopard network (many of our clients use Pave): 

Glassdoor’s software engineering salary averages 2023, by level: 

Additional good sources of compensation data online:

• Hired’s Salary Calculator is the most accurate interactive data source we’ve found online for Series A-Pre IPO Tech Company roles

• Levels.FYI always has really great coverage of 1000+ employee companies, but the data is less in-depth for smaller companies 

• AngelList (Now Wellfound) has some decent salary data for early-stage companies, but it skews low on base (I wouldn’t use it for Series B+)

• WeWorkRemotely lists remote engineering salaries, but those are also lower than what we see at CA/NY-based tech companies

Equity

We like referring candidates to Leo Polovets’s 2014 analysis of AngelList job listing equity grants. These were meant to be stretch goals rather than standard, but we think they’re worth bringing into negotiations:

Some Additional Resources We Recommend:

• Good Guide for figuring out “How Senior Am I?” (by Exponent)

• Software Engineer Pay Gap Breakdown By Seniority (by Quantic Dev)

Lastly, if you’re unfamiliar with how pay bands work and want to learn more, these articles should give you a good overview:

• How Companies Design Internal Engineering Pay Bands (by OneSignal)

• An Inside Look at Pollen’s Engineering Pay Bands (by Gergely Orosz) 

• Another Example of Transparent Salary Bands (by Buffer)

⚖️ Leverage

Here are a bunch of ideas for leveraging your experience during negotiations: 

🛠️ Prior Domain Experience: Mention any previous experience in the same industry or domain as the company, showing your familiarity with the sector and potential to contribute immediately.

Example: "My background in healthcare tech, particularly in developing HIPAA-compliant software, aligns really well with the immediate needs which should hopefully justify me landing in the higher end of the band”

⭐️ Project Experience: Provide examples of past projects that have significant overlap with the company's current or future initiatives. 

Example: "Having successfully built and launched three consumer-facing mobile apps from scratch in the app store, I believe I am among the top tier of qualified candidates. Therefore, I would appreciate being leveled accordingly in terms of compensation."

🚀 Startup Experience: If you've worked in a startup environment, stress your adaptability, versatility, and experience in fast-paced settings, which are hard to come by and mean you’ll know how to create value pretty quickly. 

Example: "Having served as a founding engineer for a seed-stage SaaS product, I am intimately familiar with the challenges and ready to make an immediate impact. I would appreciate it if my compensation could reflect this experience and expertise."

🎨 Zero-to-One Experience: Highlight your ability to take projects from concept to completion, demonstrating your initiative, creativity, and leadership in bringing new ideas to life.

Example: "Having successfully developed and shipped an analytics dashboard from scratch that is quite similar to [COMPANY]‘s needs, I could imagine that I’m in the top tier of qualified candidates. Therefore, I would be grateful if my compensation could reflect my level of expertise and experience." 

🧩 Unique Relevant Experience: Emphasize any rare or specialized skills you possess that set you apart from other candidates and are particularly valuable to the company.

Example: "My dual specialization in blockchain development and mobile development,is candidly hard to come by in decentralized finance. I’m hoping this can justify a premium in my compensation."

🔥 Market Demand for Your Skills: Highlight the demand for your skills in the current job market. Mention any trends or reports that show a high demand for engineers with your expertise.

Example: "Candidly, my skills in machine learning and data science are in high demand. Considering the significance of these technologies for your company, I am confident that my expertise warrants a higher salary."

How to understand the value of your equity & negotiate from a position of strength (Ankur Nagpal)

The single biggest factor that will determine the value of your startup equity is the quality of the company you join

But once you've found a good business to bet on, it can be tricky knowing how to understand the value of your equity & negotiate from a position of strength

Here are 4 things to always ask for:

1 . The share price during the last financing round or "last preferred price"

This is super important as you can use this to calculate the present value of your equity

Use this formula, equity value = number of shares you are granted * (last preferred price - strike price for your shares)

You can divide this by the number of years you are "vesting" for to figure out the annual value of your equity

2 . The number of shares outstanding in the company

This will help you calculate the percentage of the company you own using the following formula:

Your ownership percentage = Your shares / Number of shares outstanding in the company

While this number will keep changing every time the business raises money due to "dilution", it's still a very useful tool to benchmark your compensation

3 . The total liquidation preference on the company

While this is frequently the total amount of money raised, sometimes it's a bigger number so you should always ask.

Liquidation preference is the dollar amount the company has to sell for before your equity is worth anything.

If your company raised $100M, it typically needs to sell for at least $100M before you see a penny no matter how much of the company you own!

4. How much it will cost to own the shares directly & the "exercise window"

This is relevant if you are given stock options (vs shares directly) but you should see how expensive it is to own the shares directly

Owning shares directly could save you a lot of money on taxes -- holding shares for 1 year unlocks preferential long-term capital gains taxes, and 5+ years could end up with 0 taxes with QSBS.

If it costs a lot of money to own your shares, you should ask about what the "post-termination exercise window" is -- this is how long you have to buy your shares after you no longer work at the company.

🪜 Crafting a Negotiation Reply:

Thank the company and express enthusiasm: Start the negotiation on a positive note by thanking the company for the job offer and expressing your excitement about the opportunity. 

• Example: Thank you for offering me the opportunity to join the team at [Company] as a software engineer. I am excited about the potential to build products for [THEIR CUSTOMER] and to learn more about [SOMETHING COOL]! 

Mention your Leverage: Highlight your qualifications and achievements, and explain how they align with the company's goals and mission. This can help to demonstrate your value to the company and why you are deserving of a higher salary. 

• Examples: I am confident that my skills and experience, specifically building [FILL IN UNIQUE SKILLSET] make me a strong fit for this role and that I can contribute significantly to the success of the team.

Express your “Reasonable” Ask: Clearly state your salary expectations and provide your data/ research to support your request. 

• Examples: 

  • "Given my extensive experience in XYZ, I believe a salary adjustment to the 75th percentile of the market rate is reasonable."

  • "Considering my expertise in ABC technology, which is critical for this project, a re-leveling to the 90% range would be appropriate."

  • "Given the higher cost of living in this area, I believe a 10% salary adjustment is reasonable."

  • "Given my commitment to the company's growth, I would like to discuss an increase in my equity stake."

  •  "I'd appreciate an annual budget for professional development courses to enhance my skills in XYZ."

Give them your “Walkaway Number”: Make it clear to the company that if they meet you at your ask you’ll say yes, it makes it clear for them that getting this done is worth their time and will result in a successful outcome. 

• Positive, Easy Example: If you can meet me at $150,000, I would feel really great about ending my job search and accepting the offer” 

• Messier Example: Given that the range was initially listed as $150-165k, I am candidly surprised that the final offer is $140k. Unfortunately, I have to respectfully decline this offer and explore other opportunities that align more closely with my financial requirements. If you all are able to meet me at $155k though I am happy to accept. 

Offer a tradeoff if you think it’s necessary: If you think the company is unable to meet your salary expectations, consider negotiating other aspects of the offer instead. This could include a signing bonus, education stipend, vacation time, flexible work arrangements, the opportunity to work on specific projects, or other benefits that are important to you. Note that you don’t want to ask for something that is totally out of line, so try to suss out if it’s feasible in conversations to increase your likelihood of getting what you ask for. 

• Example: If meeting my salary expectation ask of X is not feasible, I am open to the alternative of a signing bonus of $10,000. This would help me offset the expenses incurred during my recent job search, and I would feel fully prepared to begin my new role." 

Thank the company and express continued interest: End the negotiation on a positive note by thanking the company for considering your request and expressing your continued interest in the opportunity. This shows that you are professional, respectful, and interested in building a positive relationship with the company. 

• Example: Thank you again for considering me for this opportunity. I look forward to discussing this further! 

📩 Starter Email Templates for Salary Negotiation

🧩 Expressing Enthusiasm and Highlighting Unique Skills

Dear [Hiring Manager's Name],

Thank you for offering me the opportunity to join [Company] as a software engineer. I am excited about the potential to build products for [Company’s Customers] and to learn more about [something you think is cool]!

I am confident that my skills and experience, specifically in building [unique skillset], make me a strong fit for this role. Given my expertise and the market rate for similar roles, I believe a salary adjustment to the 75th percentile, which would be around $[desired salary], is reasonable. 

If we can meet at this figure, I would feel enthusiastic about ending my job search and accepting the offer. I am also open to discussing other aspects of the compensation package if needed.

Thank you again for this opportunity. I look forward to the possibility of working together and contributing to [Company]'s success.

Best regards,

[Your Name]

💎 Highlighting Market Demand and Expertise

Dear [Hiring Manager's Name],

I'm truly grateful for the opportunity to join [Company] as a [Position]. The prospect of contributing to [specific project or area] is incredibly exciting, and I'm eager to bring my skills to your team.

In light of my recent research and discussions in the industry, I've found that my expertise in [specific skills or area], particularly with my proven track record in [specific achievement or project], places me in a high-demand category. Given this, I believe a salary adjustment to $[desired salary] would better reflect the market value and the unique contributions I can make to [Company].

I'm confident in my ability to deliver immediate and impactful results, and I'm hopeful we can find a mutually beneficial agreement. If we can meet at this salary level, I would be delighted to accept the offer and fully commit to the exciting challenges ahead at💎

Thank you for considering my request. I look forward to the possibility of further discussions and the opportunity to make a significant impact at [Company].

[Your Name]

🦄 Asking For More Equity

Dear [Hiring Manager's Name],

Thank you for extending the offer to join [Company] as a [Position]. I am genuinely so excited about the possibility of contributing to [specific project or area] and being part of such a smart, collaborative team.

Candidly, I'm nearly ready to accept the offer! However, before finalizing my decision, I'd like to explore the possibility of an equity adjustment. Considering my dedication to advancing in the [Company's Industry], an increase in my equity stake would make me feel more comfortable about leaving behind other established stock packages. If we can agree on this adjustment, I would be more than happy to finalize the offer. 

Thank you again for this incredible opportunity. I look forward to hopefully reaching a mutually agreeable conclusion and getting started with the team.

[Your Name]

💰 Addressing a Low Offer with a Counterproposal

Dear [Hiring Manager's Name],

First and foremost, I want to thank you for the offer to become a part of [Company] as a [Position]. I am genuinely enthusiastic about the chance to work with the team and contribute to [specific goal or project].

After careful consideration, I've noted that the initial offer of $[offered salary] is below my anticipated range. Given my extensive background in [specific skills or experiences] and their direct relevance to the goals of [Company], I was hoping for a more competitive package.

I understand the constraints you might be facing, and in the spirit of compromise, I'd like to propose a revised base salary of $[negotiated salary]. I believe this figure more accurately reflects my value to the team and the industry standards for this role.

I am very much looking forward to the opportunity to contribute to [Company] and am hopeful that we can come to an agreement that is beneficial for both parties.

Thank you once again for this opportunity. I am eager to continue our conversation and find a path forward.

Warm regards,

[Your Name]

😡 Addressing a Lower-than-Expected Offer

Dear [Hiring Manager's Name],

I want to express my sincere gratitude for the offer to join [Company] as a [Position]. I am genuinely excited about the opportunity to contribute to [specific project or goal] and to be a part of the team.

After careful consideration, I noted that the offered salary of $[offered salary] is below my expectations. Given my experience with [specific skill or achievement] and its alignment with [Company]'s objectives, I was hoping for a compensation package closer to the $[desired salary] range.

I understand budget constraints, so I'm open to discussing other forms of compensation, such as a signing bonus or additional equity, to bridge the gap. If we could meet at a base salary of $[negotiated salary], I would be thrilled to accept the offer and fully commit to [Company].

Thank you for considering my request. I am very much looking forward to the possibility of joining your team and contributing to [Company]'s success.

Warm regards,

[Your Name]

Leopard's Offer Comparison Matrix

Creating a decision matrix can be an effective way to help compare and decide between job offers. How to use: 

List the Offers: Write down the job offers you are considering in the top row. Define the Criteria: Determine the factors that are important to you in a job, such as salary, benefits, work-life balance, etc., and list them in the first column.

Assign Scores: Rate each offer on a scale (e.g., 1 to 10) for each criterion based on how well it meets your needs or preferences. You may want to assign weights to each criterion based on its importance to you.

Calculate Total Scores: Add up the scores for each offer to get a total score. Compare and Decide: Look at the total scores to see which offer ranks highest. Consider any additional notes or factors that might influence your decision.

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Once you’ve watched the video and read this article, feel free to send Lexi a draft of your Negotiation reply and the deadline, and she will send you her edits <3