Imagine Candidate A goes first and negotiates 1M total annua…
Imagine Candidate A goes first and negotiates 1M total annual cash-equivalent compensation for themselves. This leaves 1.1M for you and Candidate B. The CEO realizes that sequential negotiations was not ideal, and so, they decide to let you and Candidate B work out the final negotiation yourselves. You can decide how to approach this; specifically, you can choose between one of three options: Constrained simultaneous offers. You and Candidate B can each write down an offer and they will be revealed at the same time. Specifically, you each can write either 50:50 (meaning you will split the 1.1M) or 75:25 (meaning you get 75% or $825K, and the other candidate gets 25% or $275K). If you both write 50:50, you get 50:50. If one of you writes 75:25, and the other write 50:50; the person who wrote 75:25 gets $825K and the other gets $275K. If you both write 75:25, you both get $275K and what’s leftover goes to additional CEO compensation. Final offer arbitration. You and Candidate B write down your final offers and reveal them to the CEO. There are no constraints on how to divide the 1.1M. The CEO then chooses one of the offers. Negotiate with each other, as usual, until you come to an agreement. Explain the pros and cons of each option. Then explain which one you would choose, why, and how you would approach it.
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