"What Are Your Salary Expectations?"
The salary question creates more anxiety than it should. A recruiter asks what you expect, and suddenly you are trying to protect your value without pricing yourself out of the process. Senior executives often know how to negotiate a complex commercial agreement, yet become surprisingly uncertain when the number relates to their own appointment.
The answer matters because an early figure can become an anchor for every conversation that follows. Go too low, and you may weaken your position before the employer has understood your value. Go too high without context, and you may be removed from consideration before you have understood the role.
The aim is not to avoid the question. It is to answer with enough confidence and flexibility to keep the discussion within the scope of the appointment.
Understand why they are asking
A recruiter may ask about salary for several reasons. They may need to confirm that your expectations sit within an approved range. They may be testing whether the role is at the right level for you. They may also be trying to prevent both sides from spending weeks on a process that could never be financially viable.
That is reasonable. What is not reasonable is expecting you to commit to a precise figure before the reporting line, remit, performance expectations, team, incentives and risk are clear.
The question is not a demand for your lowest acceptable number. It is the start of a commercial discussion.
Research the market before you enter the process
You should have a view of your market range before speaking with recruiters. That range should be based on roles with similar scope, not simply on the salary attached to your current title.
Consider:
The size and ownership of the organisation
Revenue, assets, funding and geographic scope
Team size and functional breadth
Board, investor and regulatory exposure
Transformation or turnaround requirements
Short-term and long-term incentives
Risk attached to the appointment
Location and required travel
A CFO role in a privately owned $80 million company is not directly comparable with a divisional CFO role inside a listed group. The titles may be similar while the accountabilities, complexity and reward structures are very different.
Speak with credible executive recruiters, review comparable advertisements where remuneration is disclosed and use current conversations to test your assumptions. The goal is a defensible range, not a number copied from a salary guide without context.
Do not confuse current salary with market value
Your current package is one data point. It does not automatically define what the next role should pay.
You may be underpaid because you have remained with one employer for several years. You may have accepted a lower base in exchange for flexibility, equity or a short commute. You may also be moving into a role with broader accountability that sits in a different market band.
If asked what you currently earn, you can answer without allowing that figure to control the new conversation:
“My current package reflects a different scope and structure. For this move, I am assessing the opportunity as a whole, including the mandate, fixed remuneration, incentives, and long-term value. Based on what I understand so far, I would expect the package to sit around $X to $Y.”
You are not being difficult. You are comparing the new role on its own terms.
Give a range with a clear basis
A strong answer names a considered range and explains what it covers.
For example:
“For a CFO role with this level of board exposure, transformation accountability and team leadership, I would expect a base in the range of $280,000 to $320,000 plus superannuation and an appropriate incentive. I would want to understand the complete package and mandate before settling on a final figure.”
The range should be narrow enough to sound informed. A spread of $100,000 can suggest that you do not understand your own level or that you are willing to accept almost anything.
It should also be genuine. If the bottom of your range would leave you resentful, it is not your range.
Be precise about base salary and total package
Senior remuneration can include several elements:
Base salary
Superannuation or KiwiSaver treatment
Short-term incentive
Long-term incentive or equity
Sign-on payment
Retention payment
Vehicle or allowance
Additional leave
Flexible work arrangements
Notice and termination provisions
When someone says a role pays $300,000, clarify whether that refers to base salary, total fixed remuneration, or total target earnings.
The difference can be substantial. A $300,000 package, inclusive of superannuation, is not the same as a $300,000 base salary plus superannuation and a 30% incentive.
Use the same basis throughout the conversation. If the recruiter is discussing total fixed remuneration, do not answer with a base figure without saying so.
What to say when the question comes too early
You can delay a precise answer without becoming evasive:
“I have a range in mind, but I would like to understand the scope and expectations before fixing a number. Can you share the approved range for the role?”
If they will not disclose it:
“Based on comparable appointments, I would expect the base to be around $X to $Y, depending on the full remit and incentive structure. Is that broadly within the range available?”
This gives the recruiter useful information while leaving room for the facts of the role.
Do not spend ten minutes explaining why you cannot answer. A short, calm response sounds more commercial than a defensive one.
What to enter on an application form
Online applications often require a number before any conversation has taken place.
If the field accepts text, use wording such as “Negotiable based on scope and total package” or enter a considered range.
If the system accepts only one number, use a realistic figure near the middle of your researched range. Do not enter zero, $1 or an obviously false number. Those answers can create problems when the application is reviewed or transferred into another system.
Keep a record of what you submitted so that your later conversations remain consistent.
Do not lower your answer because you are redundant
Redundancy can create pressure to accept less, particularly when a search has taken longer than expected. That pressure is real, but it should remain separate from the role's market value.
An employer is buying the capability required for the appointment. Your current employment status does not reduce the scope of the remit or the expected value of the results.
You may decide that speed, stability or a change of direction matters more than maximising remuneration. That is a valid personal decision. Make it consciously rather than allowing someone else to use your availability as a discount.
Do not inflate your current package
Some candidates increase their current salary because they expect the employer to add a percentage. This creates unnecessary risk.
Senior appointments involve reference checks, remuneration approvals and, in some cases, evidence of incentive arrangements. A discrepancy can damage trust at the point when the organisation is assessing integrity.
There are better ways to protect your position. State the range the role warrants. Explain the difference in scope. Discuss the complete package. You do not need to create a false starting point.
Know when a lower figure means the role is wrong
If the approved range sits well below your reasonable expectation, do not assume negotiation will close the gap.
Ask whether the range is firm and whether the employer has graded the role correctly. Sometimes the position description carries CFO-level accountability while the budget reflects a Financial Controller appointment. That mismatch may continue after you join through authority, resources and expectations.
A lower salary is not always a reason to withdraw. The role may offer equity, portfolio value, flexibility, a sector move or experience that matters to your longer-term direction. The decision should still be based on the whole opportunity, not wishful thinking that the employer will correct the package later.
If your current employer responds with a counteroffer, compare both opportunities on scope, trust, and long-term fit, as well as money. A late salary increase does not automatically resolve the reason you started looking.
The strongest negotiation happens after mutual interest is established
Your position improves when the employer decides you are the preferred candidate. By then, both sides understand the value you bring and the cost of restarting the search.
That does not mean hiding an obvious mismatch until the end. Confirm broad alignment early, then reserve the detailed executive pay negotiation for the offer stage.
When the offer arrives, assess the complete terms. Base salary matters, but so do incentive measures, payment timing, equity conditions, probation, notice, restraints, flexibility and the resources attached to the mandate.
If you are working with executive recruiters, be consistent. Recruiters remember the figure you gave at the start and will expect a clear reason if it changes.
A simple answer is usually the best answer
The most effective response is informed, calm and conditional on scope:
“Based on the level of the role and what I understand so far, I would expect a base of $X to $Y plus superannuation and an appropriate incentive. I am open to discussing the complete package once we have confirmed the mandate and mutual fit.”
That answer gives the recruiter what they need without surrendering your position.
Salary expectations are not a test of how little you will accept. They are part of assessing whether the role, accountability and reward belong together.
If salary comes up in your next interview, you can see how I approach executive interview preparation.
If you are considering a senior move and are unsure how to position your value or discuss remuneration, book a complimentary Clarity Session, and we will work through the role, the range and the points that need to remain negotiable.
