Sometimes the unexpected can tip the scales in a negotiation—if you’re open minded and create the opportunity at the right moment.
Today, I share a client story about thinking outside the box when it comes to closing deals at the highest levels.
The $350,000 G-Wagon: A Lesson in Creative Negotiation
A client of mine, let’s say their name was Stacy, was caught between two nearly identical CEO offers.
Both offers exceeded $2.5 million in annual compensation.
A great problem to have.
The difference between the two offers was negligible.
As we worked the negotiations, both companies reached their “limits” on traditional compensation elements – cash, signing bonuses, and equity were all maxed out.
Stacy was torn. She hoped that a clear winner would emerge and make her decision a no-brainer.
It didn’t.
Through our negotiation work together, we put Stacy in a rare position of impartiality, granting her tremendous leverage but also leaving her uncertain about how to make the final decision.
With the end of the quarter looming and both companies eager to secure their new CEO, we found ourselves in a stalemate.
That’s when a moment of levity led to an unexpected breakthrough.
In a lighthearted exchange, I asked Stacy, “Well, what kind of car do you like?”
The response? “I don’t know, I like Mercedes.”
Little did we know, this casual remark became the key to unlocking the entire negotiation.
When one of the companies pressed for a final answer, asking “what it would take?” Stacy decided to test the waters with an unconventional request.
“I’ve always been partial to Mercedes,” Stacy jokingly ventured.
Without hesitation, the company responded, “what model?”
The Takeaways: Lessons for Every Executive
1. Never Assume Limits: Don’t be afraid to ask for the unconventional. You might be surprised by what companies are willing to offer when traditional avenues are exhausted.
2. Understand Company Motivations: In this case, one factor could be that the company could write off the luxury vehicle as a 100% depreciation on their tax return. Perhaps a more compelling factor is that the deal wouldn’t be publicized to other executive team members as part of the compensation package. Always consider what might be easier for the other party to provide than cash or equity even if you’re skeptical it will work.
3. Leverage Timing: The urgency of filling the position before the quarter’s end gave Stacy additional negotiating power. Recognize when time pressures can work in your favor.
4. Think Creatively: Sometimes, the deciding factor isn’t about more money or equity. Personal preferences or lifestyle enhancements can be powerful motivators.
5. Maintain a Position of Choice: Being genuinely impartial between options gives you significant leverage. It allows you to push boundaries in negotiations without fear of losing the opportunity altogether.
The G-Wagon solution allowed the company to secure Stacy while offering something they could more readily provide. It also signaled to Stacy that they’d go outside the box to win her over.
That was the tipping point she needed.
The Bigger Picture
The G-Wagon anecdote serves as a powerful reminder that in negotiations, especially at the executive level, there’s always room for creativity.
While I wouldn’t boldly claim that every negotiation will end with a luxury vehicle, the principle remains: don’t limit yourself to traditional compensation elements.
Why are you so sure that’s all you can get? What makes you so confident?
As you navigate your own career negotiations, remember to:
- Explore all possible avenues for compensation and benefits.
- Understand the full scope of what companies can offer beyond the paycheck.
- Be open and vocalize your personal preferences and lifestyle goals.
- Maintain and deepen leverage by cultivating multiple options when possible.
Negotiation often comes down to understanding not just what you and the other party want, but also what each party can uniquely provide.
By thinking creatively and staying open to the unconventional, you might just drive away with more than you expected – perhaps even in a G-Wagon.
Stay fearless, friends.
See you next week.