#negotiation

Recruiters quote total comp as if year 1 looks like year 4. It doesn't. The 12-month equity cliff at the new job means a +35% offer becomes +12% in year 1 cash terms — and the 5-year EV depends on whether you survive the gap.

Two friends, same offer, $5K negotiation gap. Over 35 years and 3% annual raises that gap becomes $699K of paycheck difference. Add the invested surplus and it's $800K+. Here's all three compounding effects, with the assumptions made explicit.

A $5K raise is three things at once: a higher base for future raises, a bigger 401(k) match, and a permanent investable surplus. Each layer compounds independently, and they stack.

First salary becomes the base every percentage raise multiplies. We ran the same $5K negotiation at ages 25, 35, and 45 — the 25-year-old gets 8× the lifetime impact for the same conversation.