untitled

cost of the option at the time of purchase, this

amounts to cash. But most stock options vest

over periods of time ranging from months to

years. If the stock value falls below the option

price, or if the company fails, the options are

valueless. If the employee leaves the compa-

ny, she loses the unvested options. The value

of stock options for companies that are pri-

vately held (i.e., not traded in stock

exchanges) is particularly hard to measure.

Consider Stability and Terms

Most academic job offers require that some

part of the applicant’s salary be paid by exter-

nal grants. This portion can range from 100% at

“soft money” institutions to 25% or less at uni-

versities that expect the applicant to cover only

“summer salary,” to 0% at the NIH. At many

institutions, this fraction may be reduced in the

first years to help a new P.I. get started.

An offer of $60k as a nine-month base

salary represents a larger commitment on the

part of the institution than an offer of $90k

that is entirely soft money. To weigh the rela-

tive merits of these offers, the applicant must

consider the likelihood of attracting sufficient

grant money to cover the higher salary, espe-

cially in a grant climate where roughly 25% of

new NIH grants are funded. Since most NIH

grants are now modular, any grant money

that is earmarked for the P.I.’s salary will

decrease the amount of grant money avail-

able for graduate and postdoctoral stipends,

supplies, and equipment.

Similarly, in industry long-term stability

must be weighed against short-term gain.

Small start-up biotechnology companies may

offer attractive salary and stock options, but if

the company fails, stock options become val-

ueless. Pharmaceutical companies will typical-

ly offer lower salaries and fewer stock options,

but are less likely to lay off scientists or fail.

Be Informed

Publicly available data can provide useful

benchmarks for negotiation. All public

universities and many private universities

publish average faculty salaries. Search the

Internet or campus newspapers. The univer-

sity’s human resources department can help

direct the applicant to this information.

Nationwide salary surveys are available.

Consult them.^1

Know the Rules

The well-prepared applicant has a good sense

of what she wants and what she is likely to

get. Actual salary negotiation depends on the

policies and limitations of the specific

employer. The best source of information is a

186 CAREER ADVICE FOR LIFE SCIENTISTS II

An offer of $60K as a nine-

month base salary represents a

larger commitment on the part

of the institution than an offer of

$90K that is entirely soft money.

Any grant money that is

earmarked for the P.I.’s salary

will decrease the amount of grant

money available for graduate and

postdoctoral stipends, supplies

and equipment.

Publicly available data can

provide useful benchmarks

for negotiation.