Richard Sanderson | Dissecting Compensation Understanding, Negotiating and Managing Pay" Part 2

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Oct 14, 2025

Richard Sanderson, a leader in executive compensation at Spencer Stuart, shares crucial insights on navigating salary negotiations. He emphasizes the importance of leveraging the verbal offer stage to align on compensation terms without damaging trust. Richard discusses how to identify employers’ negotiation styles and the variety of negotiable elements including severance and relocation costs. He also advises on conducting a multi-year cash flow analysis and being transparent about pay structures to alleviate team anxiety, providing a roadmap for securing fair compensation.

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ADVICE

Use The Verbal Offer Window

When you receive a verbal offer, treat it as your moment of maximum leverage and respond clearly about what you need to make it work.
Use that one opportunity to ask for items that bridge gaps without committing yet.

INSIGHT

Know The Company's Negotiation Style

Companies vary: some give a near final "full and fair" offer while others expect multiple negotiation rounds.
Understand a company's negotiation style early to set expectations and plan strategy.

ADVICE

Broker With A Trusted Recruiter

Use an experienced recruiter or executive search firm to broker negotiations and remove heat from the process.
Trust your recruiter to convey realistic flex and keep discussions professional.

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"Dissecting Compensation - A Primer on Understanding, Negotiating and Managing Pay"

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.

In Part 2, host Mike Linton sits back down with Spencer Stuart Practice Leader Richard Sanderson to get tactical about comp negotiations, severance, equity, and managing your team through pay anxiety. If you’re a CMO (or headed there), this episode is your field guide to securing a fair offer and stewarding compensation conversations with your org.

Points of interest:

• Your moment of maximum leverage: why the verbal offer is the prime time to align on comp—and how to use that window without damaging trust.

• How different companies negotiate: spotting “full & fair” one-shot offers vs. multi-round negotiators—and how to work the process with your recruiter as a broker to keep heat and emotion out.

• Beyond base and bonus: what’s often negotiable (e.g., severance, sign-on/bridge, relocation, start date, work location, travel, even one-offs) and how to prioritize your asks.

• Severance norms & timing: what policies typically look like (e.g., 6–12 months in many cases), when to ask, and why it’s safest through the recruiter.

• Feeling underpaid? Building a data-backed case with market signals, peer benchmarks, recruiter insight—and how proxy statements can ground internal conversations.

• Underwater equity & team morale: acknowledging pain, reframing to a long-term vision, and understanding annual equity refresh dynamics (timing matters).

• Do the 5-year cash-flow analysis: compare current state vs. new offer (vesting, cliffs, bridge needs) so you don’t get surprised in Year 1–2.

• Today’s relocation reality: mortgage-rate math and why moves can be financially punitive—plan your package accordingly.

• Offer etiquette & reputation risk: why turning down a written offer is a red flag on process—and why reneging after signing can follow you.

• Be ready for the AI question: every senior marketing interview now probes AI use cases, impact, and CFO alignment—have crisp examples.