If you don’t fight for your worth now, they’ll undervalue you forever.

The key word in that sentence is fight.

Salary negotiation is like class struggle – those who control the purse strings (take it from those who do control purse strings) are betting on your silence, your insecurity, your fear of rejection.

If you don’t claim your value with conviction, they’ll take everything you’ve worked for and call it good business.

Your mission here, if you choose to accept it, isn’t just to negotiate – your job is to assert your power.

Let’s show you how…

Introduction: The Power of Negotiation

Negotiation is a skill, it can be learned, mastered and perfected.

But also, negotiation is not just a skill – it’s a decisive factor that determines your career trajectory and lifetime earnings.

Studies show, and anecdotal evidence from any executive worth their salt corroborates, that the simple act of negotiating a job offer can lead to significant financial benefits. Research from the University of Washington also indicates that starting salaries have a compounding effect on lifetime earnings, as subsequent raises and bonuses are often percentage-based on your initial pay​.

Additionally, findings from Harvard’s Program on Negotiation show that negotiation competency directly correlates with better career outcomes, while also demonstrating leadership, confidence, and value awareness​.

In other words, negotiation doesn’t just help with your immediate pay, but also with your future pay, as well as your power and prestige in your new organization.

Given these stakes, first-time executives MUST adopt advanced, psychology-informed negotiation strategies to secure not just higher pay but also a more advantageous position within their organizations.

What Is So Special About Executives?

Executives are not just employees. At the risk of sounding corny; executives are the architects of a company’s vision, culture, and strategy.

Executives make the company happen.

But for our purposes, and perhaps more importantly, executive roles are a class bridge on the path of permanent social mobility…

This is because executives are the highest level an employed individual can attain inside the human pyramid (the depiction of how modern human societies organize hierarchies). What’s special is that, as an executive, you can transition into the “capital class” of investors, owners and real decision makers – simply as a consequence of your work.

This type of class mobility is something impossible for other levels of the pyramid, levels such as blue collar workers, white collar workers or managers.

In this context, stepping into an executive role means leveling up. It also has a cost in responsibility: You’ll now be shouldering responsibilities that influence not just the organization’s bottom line but its very future, where your future and your organization’s future intertwine.

From the company’s perspective, here’s what sets executive roles apart and why they demand a special level of attention:

1. Impact Beyond the Individual Role

Unlike most positions, executive jobs require you to think holistically. Your decisions don’t just affect your team – they cascade across departments, influence shareholder value, and shape the company’s trajectory.

You become a “mover and shaker.”

2. Leadership and Vision

As an executive, you’re not merely managing tasks or people; you’re inspiring action, investment and innovation. Leadership at this level means setting the tone for company culture, guiding teams through uncertainty, and making tough decisions that others cannot – or will not – make.

3. Accountability Under Pressure

The stakes are higher in executive roles. You are accountable not just to your immediate team but to investors, stakeholders, and the public.

4. Negotiation is Non-Negotiable

Executives negotiate constantly. Whether it’s closing a major deal, resolving internal conflicts, or advocating for your company at a Senate hearing. At some level, every interaction you have turns into a negotiation.

Therefore, the ability to negotiate effectively is more than a career skill you use to get hired, but it’s also a core competency that determines your success in your new role.

5. A Rare Opportunity to Shape Your Legacy

Unlike many roles where accomplishments are tied to isolated projects, executive contributions can be immortalized. For some of us, this is a big deal…

Why You Belong in the Executive Suite

If you’re stepping into an executive position for the first time, you’ve proven that you have the skills, vision, and drive to lead at the highest levels.

That doesn’t mean, however, that your company will compensate you properly…

Remember: even as an executive, you are still part of the “labor class” – someone who exchanges their time, expertise, attention or services for money.

And the prime directive of your corporation is to maximize shareholder value, part of which is paying labor as little as they can possibly get away with.

Therefore, you must not let the glamour and pride of getting your first executive role distract you from the mission at hand. It doesn’t matter if they give you the biggest corner office, the coolest assistant, or infinite business class travel miles.

None of that matters.

What matters is: maximizing your net worth with a focus on net lifetime earnings.

The key points and tactics listed below will help you do just that…

Essential Salary Negotiation Tactics for Executives

1. Reframe the Negotiation as Collaborative Problem-Solving

Rather than approaching negotiation as a confrontational exchange, frame it as a collaborative discussion about mutual goals. Focus and refocus on the goals, with every exchange. (Hint: we love this technique because it also forces the decision makers into the subconscious experience of dealing with a business rather than human resource.)

The key is constantly emphasizing how your requests align with the organization’s success. This way, you make it easier for the employer to see your value.

Actionable Tip:

Use phrases like:

  • “How can we structure this to ensure I’m fully empowered to achieve the 40% growth goal you’re looking for?”
  • “Let’s align this package with the leadership impact I aim to bring to double the size of your team.”

2. Leverage Anchoring Bias to Your Advantage

Anchoring is a cognitive bias where people rely heavily on the first piece of information they encounter. As an executive, you have the option to set a high anchor when discussing compensation, benefits, or role expectations.

But there’s a catch: Anchoring done incorrectly can reduce the probability of you being hired, while also lowering your likeability. (source) To use this effectively, you should personalize your anchor (more on that later).

Moreover, anchoring should NOT be done in response to the notorious salary expectations question recruiters use as a trap, but as a frame control action deployed during the offer phase of the recruitment process, following our three phases of hiring model.

Actionable Tip:

Before the employer mentions a salary range at the start of negotiations, lead with:

  • “Given my leadership experience and the scope of this role, I was expecting a package in the range of $250,000–$300,000, depending on additional incentives.”

3. Employ the “Flinch Test” to Uncover Flexibility

The “flinch test” is based on exploiting the psychological discomfort many people feel when confronted with silence or hesitation…

After presenting a counteroffer, remain silent and observe the reaction. Often, the hiring manager will fill the silence with valuable information about budget constraints or room for negotiation.

While the overt goal of the counteroffer is to get what you want (the massive salary), the implicit goal is gathering intelligence, which requires silence, careful observation and active listening.

Actionable Tip:

When offered a salary, respond with:

  • A slight pause, then a measured, calm, pleasant body language and warm smile: “I was hoping for something closer to $X; what do you think?” This subtle move often leads to concessions. You also give them subconscious permission to divulge what they think and react to you personally; great for gathering intelligence.

4. Utilize Loss Aversion Framing

Psychology reveals that people are more motivated to avoid losses than to achieve equivalent gains. (In marketing circles, avoiding loss is considered twice as powerful as gaining something.)

When negotiating, emphasize what the employer stands to lose by not meeting your terms. For example, highlight potential risks in undercompensating a key leader, or having the wrong individual hired on the cheap.

Actionable Tip:

Frame your asks and counters with statements like:

  • “To ensure I can attract top-tier talent to this team, it’s critical that the budget reflects competitive industry standards.”
  • “Without the willingness to dedicate appropriate resources, we not only risk missing key market opportunities, we could lose serious market share to our competitors!”

This tactic also shifts the focus from your demands to the employer’s priorities and pain points.

5. Maximize Non-Monetary Benefits

Although salary is important, compensation extends beyond salary. Especially for executives, options, vested shares, annual bonuses, special privileges and exit contracts (aka golden parachutes) are all in play.

Beyond these, you can also ask for performance bonuses, signing bonuses, equity, professional development allowances, or enhanced flexibility (see full list in the negotiation section of Launch Your Career.)

These items can typically be easier for companies to approve, and they can provide substantial personal as well as financial value. Remember: Your goal is maximizing your net worth with a focus on net lifetime earnings.

Think long term. Think outside the box.

Actionable Tip:

Ask for specifics like:

  • “A signing bonus to offset the transition costs.”
  • “An executive coaching budget to enhance my leadership impact.”

6. “What if I’m Being Underestimated Because I’m New?”

As a first-time executive, it’s common to feel that your lack of experience might lead to a lower initial offer.

The reality is, what you get paid has little to do with experience, and everything to do with power. Furthermore, concepts like “getting seasoned”, or “paying your dues”, or “proving yourself,” are nothing but persistent delusions.

Pay is about power, period.

That being said, your lack of experience may be used as an excuse to shut your counters down, and you need to know how to handle this…

Advanced Step:

Turn perceived inexperience into a value proposition. Highlight your fresh perspective and ability to bring innovative, new, out-of-the-box, modern, or new generation solutions:

  • “I understand I’m stepping into a new level of responsibility. But my recent experience solving [specific challenge] and affinity with [your core younger demographic market] uniquely positions me to make this position a success. You’re hiring an insider.”

(Hint: Reframing shifts the focus from what you lack to what you uniquely offer.)

7. “Is My Ask Too Aggressive? Could I Lose the Offer?”

Fear of losing an offer by negotiating too hard is pervasive and often amplified by mainstream advice. But then again, human resources people write mainstream advice, and they implicitly think of you as a resource (Hint: they are not on your side.)

Regardless, research shows that negotiating respectfully, even assertively, rarely leads to rescinded offers (unless you are egregious, combative, rude or dismissive​.)

Advanced Step:

Maintain professionalism while testing boundaries. Use conditional phrasing to minimize perceived risk:

  • “If we could adjust the offer to better reflect the current market somewhere along the lines of $X-$Y, I’d be thrilled to move forward.”

8. “Why Does Everyone Talk About ‘Market Rates’ When It Feels Meaningless?”

Articles often suggest “do your research on market rates,” but these numbers can feel generic or disconnected from your actual worth. They may also be lower than what you want…

If the rates help you, great – you can use them as easy justification. If they don’t help you, great – you can ignore them and focus on the unique value of your leadership in the specific context of your job.

Advanced Step:

Assuming the market rate does not suit you: Reframe the market rate narrative by focusing directly on your impact. You can respond with patterns like:

  • “Market rates provide a useful benchmark, but let’s also account for [specific accomplishments, challenges addressed, or projected results].”

9. “How Do I Handle That Gut-Wrenching Silence After Making an Ask?”

While most advice tells you to “wait it out,” such advice doesn’t address the psychological stress of those awkward moments and the risks they present. Remember: People can do dumb things under stress…

If you focus all your attention on the outcome you want and HOW you’re going to get it, awkwardness becomes much easier to endure.

But more importantly, silence can be an opportunity to take the lead…

Advanced Step:

If you encounter that awkward silence, have something ready to say which primes your negotiating party to think out loud:

  • “I’d love to hear your thoughts. I’m confident we can reach an agreement that works for both of us.”

Personalization: The Next Level In Negotiation Strategies

While the generalized negotiation techniques we taught you above offer a strong foundation, achieving exceptional results requires customizing your approach to the personalities of the decision-makers as well as the values of the company.

Remember: People make decisions based on their own psychological drivers, whether it’s a need for control, validation, innovation, or alignment with personal values. By customizing your responses to the individual, you both create rapport, and also, you subtly allow the decision-maker’s personality and priorities to guide them toward agreeing with your terms.

Why Personalization Works

  • Builds Instant Rapport: Personalized responses make them feel that you understand and respect the other party’s goals and preferences, fostering trust.
  • Utilizes Their Biases: Decision-makers are more likely to agree with proposals that align with their own values or thinking styles.
  • Lets Their Own Personality Convince Them: Let their mind do the heavy lifting of your negotiation. When your argument mirrors their motivations, they feel naturally inclined to agree.

Example:

Suppose the hiring manager values innovation and agility, while the company emphasizes collaboration. A customized response could be:

  • “Your focus on collaboration is one of the reasons I’m excited about this role. My background in cross-departmental initiatives could fit right in; I think it will actually lead to the [specific innovative changes] I know you’re looking for.”

At the risk of gross oversimplification, you give them exactly what you want before asking for exactly what you want.

Beyond the Basics

This level of customization is a broad and intricate subject that goes beyond what an article can cover. It requires you to learn a fast and accurate method to discern the hiring manager’s values from basic interactions (think reading people.)

If you’re serious about mastering these skills, consider Launch Your Career or Executive Ascent. You’ll get a deep understanding of decision-maker profiles, with step-by-step tools for customizing your responses across all phases of the hiring process, including negotiation responses for maximum net lifetime earnings.

Before You Go: Pre-Negotiation Preparation Checklist

One final tip… In negotiations preparation is critical.

Use this checklist to prepare:

  • Research Market Data and Context
    • Gather industry-specific salary benchmarks for similar executive roles.
    • Consider the region and company-specifics.
  • Understand the Decision-Maker’s Profile
    • Research the personality, priorities, and negotiation style of the person you’ll be speaking with. (Use our lists in Launch Your Career)
    • Consider the values and mission of the company.
  • Define Your Value Proposition
    • List specific accomplishments, quantifiable impacts, and unique skills that demonstrate your worth.
  • Set Your Parameters
    • Identify your desired salary, benefits, and perks, as well as your absolute minimum acceptable package.
    • Be clear about trade-offs you’re willing to make (e.g., salary vs. equity). You don’t need to share these with the company, but you need to know exactly where your lines are so that you are not caught “thinking” during negotiations.
  • Craft Your Opening Ask
    • Prepare a strong opening that sets a high but reasonable anchor. (Assuming the restrictions we listed above regarding anchors.)
  • Craft Three Counters
    • Develop three persuasive responses to potential objections with counters.
  • Rehearse with a Trusted Advisor
    • Practice your delivery, focusing on tone and confidence.
    • Role-play challenging, hard-ball scenarios.
  • Anticipate Emotional Responses
    • Recognize your own triggers and plan strategies to maintain composure. (You can use the single pointed focus or box breath techniques.)

Remember: Preparation pays…

Conclusion: The Long-Term Payoff

Mastering salary negotiation is an investment in your career.

Assume worst case scenario: Your negotiating party is trying to cheat you out of what you deserve.

Assume that they are a far superior negotiator than you are.

Assume that if you don’t negotiate, giving it the best you’ve got, you’ll be taken advantage of.

Assume that if you don’t exercise power, you will lose power.

And accept that you deserve what you can get away with.

This is how fortunes are made…