2025 Executive Compensation Negotiation: How B2B SaaS Leaders Can Maximize Pay & Equity

The past year in B2B SaaS GTM hiring and compensation has been exceptionally volatile. After the rapid-growth era of 2020–2021, companies swiftly transitioned toward prioritizing efficient growth and profitability. According to Pavilion’s 2025 GTM Compensation Report, median on-target earnings (OTE) for VP-level and higher roles have dropped approximately 13% heading into 2025. This represents a notable shift in negotiating leverage back toward employers, reducing the prevalence of generous signing bonuses and other previously common incentives.

However, this trend hasn’t affected all roles equally. Notably, specialized individual contributors, particularly those possessing advanced skills in AI, have seen their compensation rise significantly, reflecting the increased premium companies place on hands-on technical execution. Executives, meanwhile, have faced more scrutiny and cautiousness around equity compensation. The once-standard equity component has become less frequent, driven by a sluggish exit market and heightened skepticism about the real value of stock options.

As a GTM leader, how do you maximize your pay and equity in 2025? We dove into this topic in a recent session with Pavilion founder and CEO Sam Jacobs: How to Negotiate Salary, Variable Pay & Equity Using 2025 Benchmarks. We summarized the highlights from that session in this article.

Define Your “Zone of Acceptance”

An essential concept in effective negotiation is understanding your Zone of Acceptance. Clearly identifying your ideal and minimum acceptable outcomes for salary, bonus, equity, and other compensation terms is critical. Having a predefined range gives clarity and structure to your negotiation strategy.

If the offer you receive lands within this zone, it’s often wise to accept promptly. Prolonged negotiations can erode goodwill, causing potential friction before you even begin your role. Your goal is to reach a mutually satisfying outcome quickly and confidently, facilitating a smooth transition into your new position.

The Art of the Ask: When to Push and When to Say “Yes”

Knowing how many rounds of negotiation are optimal can significantly impact your outcome. Typically, one strategic counter-offer is appropriate and expected. Beyond this, negotiations can quickly sour, potentially harming your initial relationship with your new employer.

Crafting your counter-offer strategically is key: prioritize essential terms, clearly communicate why these adjustments are necessary, and back your request with relevant market benchmarks and data. Being perceived as reasonable yet assertive is often the most effective stance, enhancing your professional reputation and setting a constructive tone for future interactions.

Pre-Negotiate Your Safety Nets: Severance Matters

Given the average tenure for GTM executives is currently around 17 months, pre-negotiating severance agreements has become a critical strategic measure. Typical severance packages range between three to six months of base salary, with more substantial packages negotiated at senior or riskier roles.

Negotiating lump-sum severance payments or structured payments through an LLC can offer significant tax advantages. While not universally accepted, suggesting such terms can substantially optimize the financial impact should your employment circumstances change unexpectedly.

Extending Your Equity Horizon: Stock Option Windows

One frequently overlooked yet incredibly impactful negotiation term is the length of your stock option exercise window. Standard 90-day windows can severely limit your financial flexibility if you depart from a role. Negotiating a longer window—such as 12 to 24 months—can significantly enhance the true value of your equity, providing you with time to assess the company’s trajectory and your personal financial situation post-departure.

Milestone-Based Compensation: Aligning Pay with Performance

When financial constraints limit immediate compensation, milestone-based compensation can offer a viable solution. This approach aligns your pay directly with achieving key company goals, such as specific revenue targets, new customer acquisitions, or profitability milestones. For instance, structuring salary increases or bonus payments around clear, agreed-upon objectives can ensure mutual benefits and motivation.

Milestone-based compensation packages demonstrate your commitment to company success and can foster stronger alignment and trust between you and your employer.

Evaluating Equity: Pressure-Testing the Promise

Equity remains a complex yet critical component of executive compensation. To thoroughly evaluate its potential value, ask detailed questions about total shares outstanding, the current 409A valuation, preferred stock implications, and the company’s projected exit strategies. A clear understanding of these details will significantly enhance your ability to gauge the real-world value of your equity.

Additionally, assessing your personal financial goals and risk tolerance is crucial when determining the weight equity should carry in your overall compensation package. Striking the right balance between cash and equity based on your unique situation can profoundly impact your financial outcomes and career satisfaction.

Leverage Pavilion’s Resources to Negotiate Smarter

Pavilion offers resources to support informed compensation negotiations, including:

• 2025 GTM Compensation Report: Benchmark your salary, OTE, equity, and offer terms against your peers. This resource is available to everyone, regardless of membership status.

  • Compare your compensation against peers in similar roles and regions
  • Identify salary trends across different company sizes
  • Access detailed breakdowns of base, variable, and equity compensation
  • Generate custom reports for specific GTM functions


   

• On The Bench Program: A private and confidential group dedicated to providing Pavilion members a full suite of resources to assist with their career search, as well as dedicated and curated support from the Career Enablement team.

• #topic_executive_comp and #topic_compensation_planning: Pavilion members use these private Slack channels to get advice on negotiation their compensation and building plans for their team.

Not yet a Pavilion member? Learn more about membership here.