New Job Offer-30% Less than Current Salary

[Anonymous]

I received a new job offer this morning for a role I'm excited about and has growth opportunity. It's in a client services field. I'm currently working at a company in an internal function.

Issue is that the offer is $250K plus some unknown bonus depending on performance; I would guess 50-75K. My current salary is 390K. Some form of it is deferred comp to end of year but generally guaranteed. Bonus amounts are only 3-5% more each year. I think I'm on reasonably solid footing for the next 3 years here.

I'm dying in the current job and there's no real growth opportunity in salary or title (or franky work I'm interested in). I'm the breadwinner and for the sake of this discussion, let's assume that this is the only salary we have.

1. What do you suggest in approaching negotiation?
2. What would it take for you to take an offer like this if I can't get the salary to budge?

Welcome any other thoughts.

[Anonymous]

It seems like a non-starter, as that is likely too much of a gap to cover. Didn’t they ask salary expectations before being interviewed?

[Anonymous]

That gap seems huge.

Are there other benefits? Shorter commute, hours, days in office, travel? Better benefits - retirement contributions, health insurance plan/costs/coverage?

With a full bonus, you get to 325, and even that is a big cut from current. How long is the runway? How secure?

[Anonymous]

Gap is huge. Say thanks but no thanks and keep looking,

[Anonymous]

Anonymous wrote:I received a new job offer this morning for a role I'm excited about and has growth opportunity. It's in a client services field. I'm currently working at a company in an internal function.

Issue is that the offer is $250K plus some unknown bonus depending on performance; I would guess 50-75K. My current salary is 390K. Some form of it is deferred comp to end of year but generally guaranteed. Bonus amounts are only 3-5% more each year. I think I'm on reasonably solid footing for the next 3 years here.

I'm dying in the current job and there's no real growth opportunity in salary or title (or franky work I'm interested in). I'm the breadwinner and for the sake of this discussion, let's assume that this is the only salary we have.

1. What do you suggest in approaching negotiation?
2. What would it take for you to take an offer like this if I can't get the salary to budge?

Welcome any other thoughts.

They won’t go from $250k-$390k.

If you need the money stay in your current role and budget! Live off a $250k salary or less and then start applying for other roles. That way if you get one you like or you get laid off and take a lower paying role you will be used to it.

People need to live below their means especially now with layoffs all over.

It might be hard to find a new role with the same or higher salary so if you really want to leave I would budget and start living on that lower salary while saving/ investing the rest.

[Anonymous]

$250,000 is still a LOT of money and will keep you comfortably in an upper middle class or upper class lifestyle.

[Anonymous]

Pass.

If the issue is overwork and it’s damaging your health or family life, take the pay cut.

If you are just bored, suck it up, keep the higher paying job, get some hobbies and keep applying.

[Anonymous]

Ridiculous pay cut. Going from $800 to $700? Sure. Whatever. It’s all funny money at that point. $390 to $250 is taking a 15 year step back in pay.

But the way I’d solve it is this: Counter with $300K base plus a $200K sign on payable over 2 years.

I did something very similar recently and got a $500K sign on over 4 years, while base went from $340 to $270.

[Anonymous]

You’re out of luck. They’re not coming up that much. Tell them no thanks.

[Anonymous]

Anonymous wrote:$250,000 is still a LOT of money and will keep you comfortably in an upper middle class or upper class lifestyle.

Not if their bills and lifestyle were set up for $390.

[Anonymous]

Try to get them up to a 300 base.

[Anonymous]

Are you Csuite?
You may not find many alternatives at that stratosphere. Also if headhunters aren’t actively hitting you up - you just may be at your ceiling - and your next moves are lateral or down (for greater balance, peace of mind, less stress). It might be a different calculation. Also How did you get this far in the interview process without discussing comp??! How are you so far apart??!

[Anonymous]

…. Or actually ……your bonus is low —- are you a software engineer or similar???

[Anonymous]

My total comp currently is structured as $300k base and 70k “bonus” that’s more deferred comp to the end of year but guaranteed. If I leave before end of year they give me the $70k prorated. I can get a little more on top based on performance, but it’s tiny. I get an 7 percent retirement contribution regardless of what I contribute.

New job definitely pegs bonus to performance. There’s a path to partnership but I’m guessing comp is not that high. The managing partner left for government last year and his salary was $2 million.

It’s a boutique organization. It’s been a long and slow courtship so we haven’t discussed money.

I’m really ready for a fresh start and apart from the money it’s a very good fit. I’m also ready to negotiate and walk away if needed.

I’m in decent shape financially. We can make our bills work with the offer but wouldn’t be saving much (I save about $75k a year now and max my 401k)

[Anonymous]

Anonymous wrote:$250,000 is still a LOT of money and will keep you comfortably in an upper middle class or upper class lifestyle.

Actually, it isn’t a lot of money anymore for a family of four living in a high cost area. You may be rich in Kansas on $250k, but no where near that in DC. That’s the reality. Quit thinking that “making six figures” is so rich. It all depends on where you live.