How to Negotiate Salary and Compensation in English at Work
ESL English learning: Master salary negotiation vocabulary for tech jobs—equity, vesting, total compensation, and professional phrases for offers.
Pronunciation Guide: Compensation Terms
Mispronouncing financial terms can undermine your credibility in negotiations. Practice these commonly mispronounced words.
equity /ˈek.wɪ.ti/
EK-wi-tee
Often mispronounced as 'ee-KWIT-ee' with stress on wrong syllable
vesting /ˈves.tɪŋ/
VES-ting
Sometimes confused with 'investing' or pronounced 'vest-ING'
compensation /ˌkɒm.penˈseɪ.ʃən/
kom-pen-SAY-shun
Stress often misplaced on first syllable as 'KOM-pen-say-shun'
negotiate /nɪˈɡəʊ.ʃi.eɪt/
ni-GOH-shee-ayt
Often pronounced 'ne-GO-see-ate' without the 'sh' sound
fiduciary /fɪˈduː.ʃi.er.i/
fi-DOO-shee-er-ee
Complex word often stumbled as 'fi-DOO-see-airy'
Core Compensation Vocabulary for Tech Roles
When you receive a job offer in tech, the recruiter will discuss your 'total compensation' or 'TC'—not just your salary. Understanding this vocabulary is essential for negotiating effectively and comparing offers across companies.
Unlike traditional industries where salary is the main focus, tech compensation packages often include equity, bonuses, and benefits that can significantly impact your actual earnings. Let's break down the key terms you'll hear in offer discussions.
| Term | Definition | Example in Context |
|---|---|---|
| base salary | Your fixed annual cash compensation before taxes | The base salary for this senior engineer role is $180,000. |
| total compensation (TC) | Base salary + equity value + bonus + benefits | My TC at the startup was lower, but the equity upside was significant. |
| equity / stock options | Ownership shares in the company, often given to employees | The offer includes $200K in equity spread over four years. |
| RSUs (Restricted Stock Units) | Company shares that vest over time (common at public companies) | Google offers RSUs that vest quarterly after the first year. |
| signing bonus | A one-time payment when you accept the offer | They offered a $30K signing bonus to offset the equity cliff. |
| annual bonus | Yearly performance-based cash payment | The target annual bonus is 15% of base, depending on performance. |
| vesting schedule | The timeline over which you earn your equity | The standard vesting schedule is four years with a one-year cliff. |
| cliff | Minimum time you must stay before any equity vests | If you leave before the cliff, you forfeit all unvested equity. |
| golden handshake | Large payment given when someone leaves a company (often executives) | The outgoing CTO received a golden handshake worth $2 million. |
TC vs. Base: Know the Difference
When someone on Blind or Levels.fyi asks 'What's your TC?', they mean total compensation—not just base salary. Comparing only base salaries can be misleading, especially at companies where equity forms 30-50% of total pay.
Scenario 1: Negotiating a Salary Offer with a Recruiter
You've completed your interviews at a Series B startup, and the recruiter calls with an offer. Here's how to navigate the conversation professionally while advocating for better compensation.
| Weak / Unclear | Strong / Professional |
|---|---|
| That's not enough money. | I was hoping for a base salary closer to $190K, based on my experience and market data. |
| I need more equity. | Could we explore increasing the equity component? I'm excited about the company's growth potential. |
| Is that the best you can do? | Is there flexibility in the compensation package? |
| I'm broke right now so I need a signing bonus. | Would a signing bonus be possible to help offset the transition period? |
| Other companies pay more. | Based on comparable offers I've received, I'd like to discuss adjusting the total compensation. |
- Always thank the recruiter first: 'Thank you for the offer—I'm genuinely excited about this opportunity.'
- Ask for time: 'Could I have until Friday to review the full package?'
- Be specific: 'I'd like to discuss the base salary and equity split' is clearer than 'I want more.'
- Show flexibility: 'If base salary is fixed, I'd be open to discussing other components like equity or signing bonus.'
Culture Note: Negotiation is Expected
In US tech culture, negotiating is standard—recruiters often expect it. Not negotiating can signal you don't know your market value. However, be professional and collaborative, not aggressive.
Scenario 2: Understanding Equity in a Job Offer Discussion
During a call with a hiring manager, you need to understand the equity component of your offer. Many engineers find equity terminology confusing, especially when comparing startup stock options to public company RSUs.
| Question to Ask | Why It Matters |
|---|---|
| What's the current 409A valuation? | For startups, this tells you the fair market value of shares for tax purposes. |
| What's the strike price of the options? | The price you pay to buy shares—lower is better. |
| Is the equity ISOs or NSOs? | Incentive Stock Options have better tax treatment than Non-Qualified Stock Options. |
| What's the vesting schedule and cliff? | Standard is 4-year vest with 1-year cliff, but some companies offer accelerated vesting. |
| Is there acceleration on change of control? | If the company is acquired, does your equity vest immediately? |
| What percentage of the company does this represent? | Knowing the percentage helps you understand potential upside. |
Example dialogue with a hiring manager:
You: 'Could you walk me through the vesting schedule for the equity grant?'
Manager: 'Sure. It's a four-year vest with a one-year cliff. After twelve months, 25% of your shares vest, and the remaining 75% vest monthly over the next three years.'
You: 'And if I leave before the cliff, I forfeit all the unvested equity?'
Manager: 'That's correct. But we do offer a 90-day exercise window for vested options if you leave.'
Scenario 3: Discussing Cost of Living in a Distributed Team
With remote work, conversations about location-based pay have become common. Here's vocabulary and phrases for discussing compensation across different geographies.
| Term | Meaning |
|---|---|
| geo-based pay / location-based pay | Salary adjusted based on where you live |
| cost of living adjustment (COLA) | Pay modification reflecting local expenses |
| location-agnostic pay | Same salary regardless of location |
| pay band / salary band | Range of compensation for a given role level |
| comp philosophy | Company's approach to determining pay |
| Informal (Slack / Team Chat) | Formal (Email / HR Discussion) |
|---|---|
| Does moving to Austin affect my pay? | I'd like to understand how relocation would impact my compensation. |
| What's the pay band for L5 in Europe? | Could you share the salary range for this level in the EU region? |
| Are we doing geo pay or location-agnostic? | What is the company's compensation philosophy regarding location? |
| COL in SF is brutal—any adjustment? | Given the cost of living difference, is there a regional adjustment available? |
Example from a 1:1 with your manager:
You: 'I'm considering relocating to Portugal. How would that affect my compensation under our current policy?'
Manager: 'We use geo-based pay bands. Moving from SF to Lisbon would put you in a different band, but I can get you the exact figures from HR.'
You: 'I appreciate that. Could we also discuss whether the pay band accounts for the higher tax burden in Portugal?'
Common Mistakes: What You Hear vs. Better English
Even experienced professionals make vocabulary errors when discussing compensation. Here are mistakes commonly heard in tech workplaces and their corrections.
| ❌ Heard at Work (Incorrect) | ✅ Better English (Correct) |
|---|---|
| I got a big bump sum when I joined. | I got a big lump sum when I joined. (lump sum = single large payment) |
| My shares are investing over four years. | My shares are vesting over four years. (vesting = becoming yours over time) |
| What's the interesting rate on my 401k loan? | What's the interest rate on my 401k loan? |
| I need to lend money from the bank. | I need to borrow money from the bank. (you borrow FROM, lend TO) |
| The company will give me a golden hand. | The company will give me a golden handshake. (or golden parachute for severance) |
| Things are a bit tide financially. | Things are a bit tight financially. (tight = difficult, constrained) |
Borrow vs. Lend
Remember: You BORROW from someone (receive money), and you LEND to someone (give money). 'Can I borrow $20?' is correct. 'Can I lend $20 from you?' is wrong.
Practice Exercises
Test your understanding of compensation vocabulary with these exercises based on real tech workplace scenarios.
Complete the sentence
Type the missing word or phrase.
Complete the sentence: 'The standard ______ schedule at most tech companies is four years with a one-year cliff.'
Multiple choice
Choose the best answer.
Which phrase is most professional for asking about salary flexibility during a negotiation?
Multiple choice
Choose the best answer.
A recruiter says: 'We're offering $50K in RSUs vesting over four years.' What does RSU stand for?
Fill in the blank
Correct this sentence: 'I need to lend money from the bank to cover my relocation costs.'
Key Phrases for Salary Negotiations
- Opening: 'Thank you for the offer. I'm excited about this opportunity and would like to discuss the compensation package.'
- Asking for more: 'Based on my experience and market data, I was hoping for a base salary closer to [amount].'
- Flexibility: 'Is there flexibility in [base/equity/bonus]?'
- Trading off: 'If the base is fixed, would you consider increasing the equity grant or signing bonus?'
- Understanding equity: 'Could you walk me through the vesting schedule and any acceleration clauses?'
- Buying time: 'Could I have a few days to review the complete offer?'
- Accepting: 'I'm happy to accept. Could you send over the offer letter for my signature?'
Never Say Never
Avoid ultimatums like 'I can't accept less than $X.' Instead, frame it as a preference: 'I'd feel most comfortable at $X given...' This keeps the conversation collaborative.