The article also indicated that executives were being more careful in conducting their due diligence, and at the same time, they were increasing their demands for “higher base salaries and more job security”. Where does this leave those executives who are considering job offers from hi-tech companies? Certainly, it makes good sense to examine the opportunity carefully, and for the individual to do his/her homework on the company, its competitive position among its peers, and overall prospects for success, as well as any information on its internal practices, finances, culture and management style. The executive should have a clear understanding of what the prospective employer personally wants, as well as any areas in which they are unwilling to compromise.
Obviously, once a company has committed itself to a specific candidate, that is the time for the individual to negotiate the best deal. The Total Compensation Package should include not only base salary and incentive opportunities, but potentially a sign on bonus, guaranteed first and possibly second year bonuses, plus different forms of long-term incentives such as outright stock grants, stock options, restricted stock, etc. Participation in benefits, perks and severance arrangements should also be identified, and all aspects of the Total Compensation Package should be memorialized in an employment agreement.
From the company’s standpoint, what can it do to improve its position and help to “land” the best candidates? The company must also do its own due diligence; this includes having up-to-date information on the job market, with competitive information on the positions it is seeking to fill, as well as identifying the impact on pay for corresponding positions currently within their organizations. Bringing in one executive at the expense of losing one or more current individuals is not very economical and can have drastic repercussions. The company should have a consensus on which companies comprise its peers for competitive pay purposes, and what elements of compensation it will use in developing its Total Compensation Package. Most importantly, the company must be prepared for, and carefully respond to, demands raised by job applicants. Lastly, it must be sufficiently flexible to be able to handle different situations as they arise.
Daniel Nasaw, “Tech Start-Ups Have Trouble Filling Top Jobs,” The Wall Street Journal , August 31, 2004. 
