Comp & Negotiation

Your leverage is highest after "we want to hire you" and before you accept the written offer — so never accept on the call, never volunteer your current salary first, and negotiate the whole package, not just base. This note is India-focused (CTC, ESOPs, levels, tax) with notes on global comp. Below: how offers are structured, scripts for every recruiter move, and how to push without burning the bridge.

---

Compensation Components

Component	What	Notes
Base salary	Fixed monthly/yearly cash	Anchors most other things (PF, gratuity, bonuses).
Annual bonus	Performance + company multiplier	Usually 10-20% of base; not guaranteed.
Sign-on bonus	One-time joining lump sum	Often has 1-2 year clawback if you leave.
Stock (RSU)	Restricted Stock Units, vest over time	Typical: 4 years vest, 1-year cliff. At IPO'd cos = ~cash. At startups = lottery ticket.
ESOPs	Stock options (right to buy)	Indian startup standard. Need to exercise (pay) to convert; tax mess.
Relocation	One-time, taxable	Negotiable, especially if moving cities/countries.
Joining stock grant	Larger RSU year 1 to offset unvested at old company	Useful in negotiation if you're walking away from a vest cliff.
Retention bonus	Cash promised at month X if still here	Common at year 2-3.

India-specific

• CTC (Cost to Company) inflates with PF employer share, gratuity, insurance, "variable pay". Actual take-home is much lower. Ask for fixed-pay-after-tax + variable + stock breakup, not just "X LPA."
• PF: 12% of basic from you + 12% from employer.
• Gratuity: payable after 5 years; ~15 days' salary per year of service.
• Notice period: 30/60/90 days, counts against your start date.
• Variable pay: often advertised as part of CTC; actual payout = 70-110% based on rating.

---

Levels in Indian Tech (rough)

Level	Years exp	Big Tech (Google/Amazon/Microsoft)	Indian unicorns	Service co (TCS/Infy)
Entry	0-2	L3 / SDE-1	SDE-1	Software Engineer
Mid	2-5	L4 / SDE-2	SDE-2	Senior SE / Module Lead
Senior	5-9	L5 / SDE-3	SDE-3 / Senior	Tech Lead
Staff	9-15	L6 / Sr. SDE	Staff / Principal	Architect
Principal	15+	L7+	Principal / Distinguished	Sr Architect

Levels matter because:

• Comp is banded by level.
• Title travels with you when you switch.
• One level under-leveling at a big company can cost ₹40-80L over the comp delta of 4 years.

---

Researching Your Worth

Before any conversation, know the range for your level + your city + your stack:

• levels.fyi: best for big tech globally + India.
• Glassdoor / AmbitionBox: Indian companies; treat with skepticism (recency bias).
• Blind: anonymous comp threads.
• LinkedIn salary insights.
• Friends who recently switched (the most reliable signal).

Triangulate three sources. Pick the realistic 60-80th percentile for your level/co.

---

The Negotiation Arc

Application → screens → interview loop → "we want to hire you"
                                                 ↓
                                          verbal offer
                                                 ↓
                                       written offer letter
                                                 ↓
                                          NEGOTIATE here
                                                 ↓
                                          accept / decline

The leverage is highest between "we want to hire you" and before you accept the written offer. Once you say yes, you can't undo it without burning the relationship.

---

Golden Rules

---

What Recruiters Will Try

• "What's your current comp?" → don't answer; redirect to your expectation.
• "What's your expectation?" → counter with "what's the range for this role?"
• "We can't move on base. We can only do RSU." → ask for joining bonus or accelerated vest.
• "Our system doesn't allow that." → "Who can I talk to who can make exceptions?"
• "We're already at the top of the band." → "Can you talk to leveling? Does my profile fit the next level?"
• Verbal exploding offer ("decide by Friday") → ask for it in writing + 1 week to evaluate. Most companies relent.

---

Scripts

Asking for the range (first conversation)

"Before we go deep, can you share the salary range you have in mind for this level? I want to make sure we're aligned before investing time."

Counter-offer

"Thank you for the offer. I'm genuinely excited. After reviewing, I'd love to discuss a few adjustments:

1. Base from X to X+5L. This aligns with offers I'm seeing for [level] in [city].
2. Sign-on of ₹Y to offset the bonus I'm walking away from at [current co].
3. Joining date 6 weeks out instead of 4, to wrap up handover.

If we can land here, I'm ready to accept. Happy to discuss any of these on a quick call."

(Three asks, framed positively, signed off with intent to close.)

Pushback if they say "no movement"

"I understand there are constraints. Can you help me understand what's driving the cap? If base is fixed, is there flexibility on RSU or sign-on? I really want to make this work."

Walking away

"I appreciate the offer and the time your team invested. Unfortunately the comp doesn't align with what I need for this move. If something changes on your side, please reach out. I'd love to find a way to work together."

(Burn zero bridges. People remember graceful exits.)

---

Evaluating Two Offers

Don't compare on headline CTC. Build a 4-year comparison:

	Offer A	Offer B
Base × 4
Bonus × 4 (assume 100% target)
RSU value × 4 (assume current price)
Sign-on
Relocation
Total 4yr
Take-home / month (post-tax)
WFH?
Stock liquidity (public / private / illiquid)
Team / manager / scope
Career trajectory at this co

The qualitative side matters more long-term than 10% comp delta.

For private companies' equity:

• Discount heavily if pre-IPO with no recent secondaries.
• Ask about strike price, 409A, last round valuation, exercise window after exit.

---

Counter-offer From Current Employer

When you give notice, your manager may scramble to retain. Be careful:

• People who accept a counter-offer often leave within a year anyway. (The oft-quoted "80%" is unsourced — but the reasons below are real.)
• It signals you're a flight risk; you'll be passed over for stretch projects.
• The underlying reasons you wanted to leave usually don't get fixed.
• Sometimes the counter is genuine and worthwhile. Judge case by case.

If you accept: get the new comp + terms in writing. If you decline: be gracious. "I've thought hard. The new role gives me X that this team can't offer right now. I'm committed to a clean handover."

---

After You Accept

• Get everything in writing. Offer letter should list base, bonus, RSU schedule, sign-on, joining date, level/title, location, notice period.
• Re-read the clawback clauses. Sign-on usually claws back if you leave in year 1.
• Confirm notice + start date. Get manager confirmation on relocation timeline if applicable.
• Stay friendly with the rejected company. You may want to interview there again.
• Don't tell the world until you've resigned cleanly.

---

Levels & Titles: Why Push Back

If you're getting an offer at L4 but your scope at current company is closer to L5 (lead projects, code reviews, design docs, mentor), ask for leveling review.

Script:

"Based on the conversations and the offer, it sounds like you're slotting me at L4. Looking at my current scope ([3 concrete examples]) and the leveling guide, I'd love it if leveling could re-evaluate me for L5. Comp aside, the level shapes scope and trajectory; I want to make sure we're starting at the right place."

Companies sometimes refuse, but ask. Worst case: nothing changes. Best case: you skip a 2-year promo cycle.

---

Salary Tax Math (India quick reference)

For FY 2025-26, new tax regime (typical):

Slab (₹)	Tax
0 - 4L	0%
4 - 8L	5%
8 - 12L	10%
12 - 16L	15%
16 - 20L	20%
20 - 24L	25%
> 24L	30%

Plus 4% cess on tax. Effective rate at ₹30L base ≈ 19-21%.

Take-home rule of thumb: at high salaries, expect 65-72% of "fixed pay" as actual in-hand monthly (after tax + PF). Variable pay & RSU taxed at marginal slab + perquisite/STCG when applicable.

---

Stock: How Vesting Works

Standard schedule: 4 years, 1-year cliff, monthly thereafter.

• Year 1: nothing vests until 12 months (then 25% drops in).
• Years 2-4: vests monthly (or quarterly).

Cliff trap: if you leave at 11 months, you get $0. Plan job changes around cliffs.

Re-fresh grants: every year (or every 2 years) at most big cos, leadership grants you a new RSU pack. Without refreshes, your stock comp drops sharply in years 4-5.

---

When NOT to Negotiate Hard

• The market is bad and you have one offer you'd be sad to lose.
• You've already pushed once and got something.
• The comp is already best-in-class for your level + city.
• The role is uniquely good (team, manager, equity upside) and you don't want to risk it.

Knowing when to stop is part of negotiation.

---

When to Walk

• The recruiter is dishonest about the role / comp / scope.
• The level / title is a downgrade and they refuse leveling review.
• Comp meaningfully below market and no movement.
• You felt off about the team during interviews.
• You're being pressured to decide in < 48 hours with no real reason.

There will be other offers. Bad jobs cost 2 years; bad negotiations cost months.

---

Questions to Ask Before Accepting

• What does success at 6 months look like?
• What is the on-call rotation? PTO policy? WFH policy?
• Who would I report to? Can I meet them again?
• What's the team's growth trajectory: hiring or shrinking?
• How are RSUs refreshed in years 2-4?
• What's the path to next level: typical timeline?
• What's the comp review cycle (annual / merit pool size)?

---

Cheat Sheet

Situation	Move
Asked for current salary	Redirect to target range
First offer comes in	Don't accept; take 48h
Want more base	Cite market data; specific number
Base is capped	Push sign-on, RSU, level
Tight deadline	Politely ask for more time
Multiple offers	Be transparent; ask each to improve
Counter from current employer	Usually decline; rarely accept
Walking away	Stay gracious; door open
Got what you want	Stop; accept