> Pay market, or above, as soon as you can. It’s a sign of respect.
This is the best advice I can give any software engineering firm. I've left companies large and small chiefly because they waited until I gave notice to bring my salary in line with my performance. If you have a top engineer and haven't given them a raise in 9 months, they are seriously considering their options.
A lot of people act like compensation shouldn't matter. All the senior people in your company care VERY MUCH about their compensation. If you become good friends with them you will see this very clearly.
Assuming you've done well for your company you might say
"That's very disappointing to hear that we're struggling so much as a company. I was (hoping|expecting) for X.
<pause>
Is there any advice or direction you could provide to me where I might help ensure we do better as a company going forward? I'd like to set up a plan of what I can to help and revisit compensation in the next 1-3 months."
And at the same time, start polishing your resume and interview skills.
I would think of this approach as a probation period for any company that I work for. If an employee isn't doing well, they're put on probation. Why not do the same for any company that is vying for our technical abilities?
You politely thank them for their time and immediately start looking for a new job. You have no reason to put up with that sort of a response in this job market.
If you think they have a future, ask for stock – they're asking you to accept low pay to help their business, so it's only reasonable to expect part of that return in exchange. The usual cautions about option games apply but again, if you're expecting to get screwed cut to:
If they're doomed and / or you don't trust them (i.e. does it seem like the managers also subject to low pay?), start looking.
You evaluate whether they're telling the truth. Some companies genuinely cannot afford to pay you market rate. That's why OP said "as soon as you can." In those cases, you say, "I understand. Please consider it again when the timing is better. Thanks."
But if you feel like the company can afford it and they're just shutting you down, the proper response is, "Seeya."
This is the best advice I can give any software engineering firm. I've left companies large and small chiefly because they waited until I gave notice to bring my salary in line with my performance. If you have a top engineer and haven't given them a raise in 9 months, they are seriously considering their options.
A lot of people act like compensation shouldn't matter. All the senior people in your company care VERY MUCH about their compensation. If you become good friends with them you will see this very clearly.
You deserve it just as much.