Compensation and offer

How to price an offer and close it without haggling afterwards.

Matt Mochary's framework, from The Great CEO Within, pp. 31 to 103.

Find market pay
Use what a big company pays for the role.
Find living cash
Establish the cash the person needs to live comfortably.
Bridge with equity
Take the difference, multiply by 4 years, divide by a factor of 1 to 2 (1.5 is common).
Offer three levels
Let the recruit choose how much to put into equity.
Pre-agree
Ask them to finish 'I will join the company as long as...' and 'If we made this offer, would you accept?' before offering.

From chapter: Chapter 22: Key Performance Indicators (KPIs), pp. 31–103

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