Honest question, did that affect your working relationship with your manager / their manager, or did it work out well long term for everyone?
It worked out well for all parties, depending on how you look at it.
Management was a little out of touch with market rate salaries, since they weren't tech guys (once the CEO referred to engineering as "black magic" since he didn't understand it). So while they were shocked at an offer I was able to get in a few days, they understood that engineers are in an enviable position in the job market.
This was 2013 and I was making $110k in Los Angeles, and they were offering $117k. The counteroffer was for $130k plus perks valued at about $10k (401k plus match, extra week of vacation, etc). So they matched at $140k.
I stayed there and after a year I got a promotion to director of engineering and a raise to $155k + up to $25k bonus. A few months later I renegotiated to have the bonus removed and the base salary increased to $175k.
During the time after I pulled my stunt I expanded on a pet project using sentiment analysis and that became the core of a new product that is now 40% of their revenue.
In December 2015 I left to work as a remote freelancer, which would have happened eventually regardless.
Thank you for including real numbers. Helps understand what's possible or realistic.
"During the time after I pulled my stunt I expanded on a pet project using sentiment analysis and that became the core of a new product that is now 40% of their revenue."
This is the most important number you give! Very important to understand the need to point to concrete revenue generated (or costs cut) when negotiating a raise. Otherwise, management will probably just call your bluff.
You don't need some enormous revenue or productivity win on the board to ask for a raise (although it helps). It just needs to be less hassle for them to pay you a raise than to replace you. In most cases it's really that simple.
> A few months later I renegotiated to have the bonus removed and the base salary increased to $175k.
What was your negotiating strategy here? Did you just say "I'm going to make the bonus anyway, please let's just write it in now", or was it more "I might leave if we can't work this out"?
It worked out well for all parties, depending on how you look at it.
Management was a little out of touch with market rate salaries, since they weren't tech guys (once the CEO referred to engineering as "black magic" since he didn't understand it). So while they were shocked at an offer I was able to get in a few days, they understood that engineers are in an enviable position in the job market.
This was 2013 and I was making $110k in Los Angeles, and they were offering $117k. The counteroffer was for $130k plus perks valued at about $10k (401k plus match, extra week of vacation, etc). So they matched at $140k.
I stayed there and after a year I got a promotion to director of engineering and a raise to $155k + up to $25k bonus. A few months later I renegotiated to have the bonus removed and the base salary increased to $175k.
During the time after I pulled my stunt I expanded on a pet project using sentiment analysis and that became the core of a new product that is now 40% of their revenue.
In December 2015 I left to work as a remote freelancer, which would have happened eventually regardless.