paying role. If you submitted your board application and had it approved before starting a new job, you’ll likely be fine. But what if you accept a job offer before submitting your application? Or after submitting but before the interview? In either case, it’s crucial to inform the board of your new employment plans.When assembling the board package, it is essential to include a signed version of your offer letter. This document usually belongs in the ‘Employer Verification Letter’ section of the package.
The offer letter must clearly detail your base salary, any bonuses and/or overtime pay (if relevant), and other forms of compensation, such as sign-on bonuses, equity awards, and more. Often, an offer letter can be somewhat perplexing for someone unfamiliar with the terminology, especially if it includes equity awards that vest over a period.
Therefore, we suggest creating an additional letter that clarifies your new compensation structure in straightforward terms. Additionally, developing a table that outlines your new compensation while comparing it to your existing compensation can be particularly beneficial in this process. If you’re also getting a signing bonus or other kinds of compensation, it’s helpful to understand how this boosts your yearly income.
Here’s a sample of extra wording you might consider adding to your employment change letter:
“My new employer has increased my guaranteed base salary and bonus. They also agreed to give me an immediate $25,000 sign-on bonus and $100,000 in guaranteed equity awards vesting over four years. This boosts my annual compensation by $31,250 over the next 4 years, bringing my total yearly income to $260,250 (including base salary and bonus). Overall, this represents a 47% increase in my annual compensation compared to what I’m currently earning from my employer.”
In addition to your offer letter and the letter explaining additional compensation, please remember to include a verification letter from your current employer.
How to handle the co-op board interview
If you’re moving on to a new employer, it’s quite common for this topic to come up during your board interview.
Co-op boards mostly focus on ensuring applicants can afford the monthly maintenance fees, so a job change might raise a few questions. However, it’s good to remember that you’re likely changing jobs for a better opportunity. If the topic of your new job comes up during the interview, this is a great chance to share how your new position offers increased compensation.
