Base Salary, Bonus, and Equity Explained

A CMO Confidential Interview with Richard Sanderson, the Marketing, Sales, and Communications Practice Leader at Spencer Stuart. Richard starts with the basics of salary, bonus and equity and branches out to compensation mix, the various types of equity, negotiating best practices, and the "other" elements of an offer. Key topics include: why the devil is in the details; when and how to discuss compensation; the difference between dumb luck and bad luck; and why everyone should do a "multi-year cash flow analysis." Tune in to hear why you should always read the proxy statement and the importance of being prepared to explain how you are using AI.

What should CMOs (and aspiring CMOs) know about salary, bonus, and equity—and how do you actually negotiate it? Mike Linton sits down with Richard Sanderson, Practice Leader at Spencer Stuart, to demystify executive compensation for marketing leaders. They cover base pay vs. bonus, RSUs vs. options vs. PSUs, vesting mechanics, event-based triggers, how and when to negotiate, and what new pay-equity laws mean for candidates. Real talk on forfeitures, bonus history, and why your “one big ask” matters when the offer finally comes.

What we cover

• Why CMO pay data is scarce (and what that means for “market rate”)

• Compensation mix: public vs. private/PE, U.S. vs. Europe, and “CMO+” roles

• Equity 101: RSUs, options (strike prices/underwater risk), and PSUs (accelerators/decelerators)

• Vesting models: time-, performance-, and event-based—and what you can/can’t negotiate

• Bonuses: how targets are set, why they’re harder to move, and the 3-year payout history test

• Negotiation timing: expectation-setting, handling the “what are your expectations?” question, and using information asymmetry to your advantage

• Pay-equity & transparency laws: what recruiters can ask (expectations) vs. can’t (history), and how to discuss forfeitures

• Offer strategy: why you typically get one high-leverage counter—and how to use it

Sponsor

 @quadgraphics  — Better marketing is built on Quad. When everything in your marketing machine works together, efficiency, speed, and ROI go up. See how better gets done: www.quad.com/buildbetter

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