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Basic Things To Negotiate in Your Next New Job

 

      Base salary and signing bonus. Also commissions, medical and life insurance, profit sharing and pension plans. If you negotiate profit sharing, know the accounting.


      Exit strategy. Standard agreements cover a minimum of six months' to a year's severance, and are triggered if the firm lessens your responsibilities.
      Stock option purchase plans. If you purchase stock at market price, the company may buy an equal amount under your name up to a percentage of your income.

      Stock grants. You will most likely be obligated for taxes based upon the market value.

      ISOs (incentive stock options). This is an option to purchase a certain number of shares at market value on a given day, generally exercisable years away. The primary value of ISOs is that should you eventually buy them, no tax is due on the day of purchase.

      Restricted stock units. Stock units are pegged in value, e.g., as one share of stock for every five units. The key is when you can convert to cash or shares.

      Phantom stock options and stock appreciation rights. Rights to receive the difference in market value between the time granted and value when converted.

      Non-qualified stock options. This is an option to purchase stock below market prices. Tax will be due on the difference between the price at which you exercise your right of purchase and the market value of the stock.

      Relocation expenses. This can include house purchase, moving expenses, mortgage rate differential, real estate, closing costs, cost of bridge loan, trips to look for a home, lodging fees, tuition, and spouse reemployment services.

      Other perks. These can include automobile lease, luncheons, athletic/country club membership, child care, physical exam, disability pay, legal assistance, product discounts, dining room privileges, financial planning assistance, tuition reimbursement, CPA and tax assistance, short-term loans, insurance benefits after termination, special reimbursement for foreign service, outplacement assistance and deferred compensation. If you don't have any success in your negotiations, then shift from the "present" and focus instead on futures: a review after six months, a better title, an automatic increase after time. These are easier things to get.

      Contracts. The following are usually incorporated: the length of the agreement, your specific assignment, your title, location, to whom you report, your compensation and what happens if there is a merger or if you are fired. It should also cover the specific items on the negotiation list that are part of your package. Any agreement you accept should cover all non legal situations under which an employer may choose to terminate you. Signing bonuses and generous severance packages are moving into all income levels-especially when there is a relocation.

 

 

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