Counter-Offer
A response to an initial job offer where you propose different terms — typically higher compensation, more equity, or a different start date. Negotiating a counter-offer is standard practice and rarely results in an offer being rescinded.
A counter-offer is a candidate's response to an employer's initial offer, proposing modifications to one or more terms. Most commonly this means asking for higher compensation, but it can also involve equity, signing bonus, PTO, title, remote work flexibility, or start date. **The fear that holds candidates back:** The most common reason candidates don't negotiate is fear that the employer will rescind the offer. In practice, this almost never happens — offers are rescinded for rescinding counter-offers only in extreme cases (wildly unreasonable demands or clear bad faith). **The data:** Research consistently shows 60-70% of employers expect negotiation and say it doesn't change their impression of the candidate. Many have budgeted above the initial offer precisely because they expect negotiation. **How to counter-offer:** 1. Express genuine enthusiasm for the offer and the opportunity 2. State what you're asking for specifically (not 'I was hoping for a bit more') 3. Provide brief justification if applicable (market data, competing offer, specific skills) 4. Be gracious, not demanding Sample: 'I'm very excited about this offer and the opportunity to join the team. Based on my research on market rates for this role and my specific experience in X, I'd like to request a base salary of $Y. Is that something you can work with?' **What's negotiable:** Base salary, signing bonus, equity, PTO, start date, remote work flexibility, title, and sometimes performance review timing. Benefits and retirement matching are usually fixed company-wide.
Why it matters
Failing to counter-offer when one is warranted leaves money permanently on the table. The difference between an initial offer and a negotiated offer compounds across raises, bonuses, and future offers that use your current salary as a benchmark.
Candidate tip
Always negotiate at least once, even if the first offer seems reasonable — the cost is 5 minutes of conversation; the benefit, if successful, compounds for years. The worst likely outcome is 'This is the best we can do,' which returns you to the same position.
Related terms
Salary Negotiation
Offers & NegotiationThe process of discussing and agreeing on compensation with an employer — most critically when negotiating a job offer, but also during performance reviews. Most candidates underestimate their leverage and leave significant money on the table by not negotiating.
Offer Letter
Offers & NegotiationA formal document from an employer outlining the terms of a job offer — title, salary, start date, benefits, reporting structure, and key conditions. The offer letter is the foundation for negotiation and the legal record of agreed terms.
Base Salary
Offers & NegotiationThe fixed annual or hourly compensation paid to an employee, before bonuses, commissions, or equity. It's the foundation of total compensation and the most directly negotiable component of most job offers.
Total Compensation
Offers & NegotiationThe full value of everything an employer provides — base salary, bonus, equity, benefits, retirement contributions, and perks. Comparing total compensation across offers is more accurate than comparing base salaries alone.
Signing Bonus
Offers & NegotiationA one-time cash payment made at the start of employment, used to attract candidates or compensate for benefits being left behind. Often comes with a clawback clause requiring repayment if you leave within 12-24 months.