top of page

Know Your Numbers: How Compensation Clarity Can Make or Break Executive Offers

  • Natalia Kaplan
  • Jul 17
  • 4 min read
ree


At Integria Consulting, we’ve seen high-stakes executive searches fall apart at the eleventh hour—not because of culture misalignment or lack of capability, but because of one avoidable issue: compensation clarity.


A few years ago, a VP of HR shared a cautionary story. A senior leader was moving through the final interview stages. Everything aligned—until the offer. The candidate hadn’t disclosed the details of their long-term incentive plan (LTIP)—a gap of over $50,000. The company was caught off guard and couldn’t stretch far enough to close the deal.


Misunderstandings like these can derail hard-earned opportunities and waste weeks (if not months) of recruitment effort. That’s why we advise every executive candidate: know your full compensation package, and be ready to talk about it.



Executive Compensation Has Shifted


In today’s market, executive offers are not simply a 10–15% bump on your current salary. Hiring at this level often requires a leap into a new compensation band—with a completely different structure of pay, perks, and performance incentives.

Whether you’re coming from a mid-sized company or moving between sectors, it’s critical to evaluate your entire package—not just your base salary.



Breaking Down Executive Compensation


🧾 Base Salary: Just the Starting Point

Base salary is just one piece of the puzzle—and increasingly, not the most important piece. A move to a larger company or more complex mandate may justify a band-level increase, not a percentage one.


Example: A VP earning $180K may step into a role paying $250K–$280K if the scope, risk, or accountability is significantly larger. This kind of shift reflects more than seniority—it recognizes strategic value and business impact.



💰 Bonus Structure: What’s Paid vs. What’s Promised

Understand how your bonus is structured—and what’s actually been paid out.

  • A 25% target bonus means little if it hasn't paid out in three years.

  • On the other hand, if you’ve consistently received 150% of target, that’s a real and expected part of your comp.

  • Also: Know when bonuses are paid. If you’re due in March but planning a transition in February, negotiate a delayed start or a signing bonus to close the gap.



📈 LTIPs & STIPs: The Real Value Drivers

Long-Term and Short-Term Incentive Plans (LTIPs and STIPs) are often where the most significant value lies—especially in public or PE-backed companies.

  • Know the payout structure, vesting timelines, and eligibility rules.

  • Understand how a transition may impact future payouts or equity grants.



📊 Stock Options & Equity

If you’re currently receiving stock options or RSUs, consider both the current value and vesting schedule. Walking away too soon could mean forfeiting six figures in unvested equity.

If the new role offers equity, ask about:

  • Cliff vesting

  • Grant cycles

  • Company performance targets

  • Exit scenarios (especially in privately held firms)



🚗 Transportation Allowances

Car allowances, gas cards, or mileage reimbursement often disappear in new roles unless you specifically negotiate them. If a new company doesn't cover these costs, that’s a tangible drop in net compensation.



🏖️ Vacation, Flex Days & Time Off

Vacation is more than a perk—it’s part of your total compensation.

  • If you're coming from a role with 5+ weeks of vacation, dropping to 3 or 4 can affect your well-being and lifestyle.

  • Don’t forget to account for company-wide closures (like the week between Christmas and New Year’s) that may not be offered at your next role.



🏥 Benefits Plan

Medical, dental, vision, and mental health benefits can vary dramatically.

  • Does the new employer cover 100% of premiums?

  • Is family coverage included?

  • What about disability, life insurance, or wellness credits?

Out-of-pocket costs for comparable coverage can be steep—especially for executives supporting dependents.



🏡 Hybrid or Remote Work

Flexible work arrangements have become a meaningful part of the executive value proposition.

  • If your current role offers hybrid flexibility and your new role requires full-time onsite presence, factor in the time, cost, and lifestyle impact.

  • For many senior candidates, a rigid model can be a dealbreaker.



🎓 Professional Development

From paid certifications to coaching and conference budgets, leadership development is a compensation category often overlooked. These benefits not only support your growth—they often represent $5K–$20K+ in annual value.



Do Your Homework Before the Offer

Before stepping into any final interview or compensation conversation, ensure you:


  • Calculate your full current comp: base, bonus, LTIPs, equity, allowances, and benefits

  • Assess opportunity cost: what you're walking away from if you accept

  • Benchmark your worth: against peers, market data, and industry-specific trends


This is especially important for:

  • Racialized leaders who have historically been underpaid

  • Newcomers to Canada unfamiliar with local benchmarks

  • Women executives, who continue to experience pay gaps even at senior levels


Knowing your value—and being prepared to articulate it—is not just a negotiation tactic. It’s a leadership responsibility.



Final Thoughts


Executive hiring doesn’t fall apart because of difficult conversations—it falls apart because of unprepared ones.


Compensation at this level involves nuance, strategy, and foresight. It’s about more than salary—it’s about total value, long-term incentives, and lifestyle alignment.


At Integria Consulting, we help organizations make thoughtful, competitive offers—and support executive candidates in negotiating with clarity and confidence.

Because when both sides know the numbers, the right decisions get made.


 
 
 

Comments


bottom of page