Latest / Executive Careers with Fexingo: VP, C-Suite, and Senior Leadership Career Strategy / How Executives Handle a Counteroffer From Their Current Employer
Transcript
- Lucas: You've just told your CEO you're leaving. You've given notice, the conversation is done, you're already thinking about the new role. And then, three days later, they come back with something you didn't expect. A bigger title. A thirty percent raise. A seat on the board. Luna: The counteroffer. It's the moment every senior leader thinks they'll handle gracefully, and almost none of us do. Lucas: Right. And today I want to look at why the counteroffer is rarely about money, and why the research says most executives who accept one end up leaving within the year anyway. Luna: Before we go deeper, this is exactly the kind of episode that makes me glad we do this show ad-free. And if you've ever found yourself in a career conversation you wished you'd been better prepared for, that's a big part of why we keep making it. If we've helped you think through a move or a decision, and you want to keep it that way, you can support us at buy me a coffee dot com slash fexingo. No pressure, just knowing it's useful is enough. Lucas: Appreciate that, Luna. And that's actually a perfect segue, because preparation is exactly what today's episode is about. So let's set the scene with a real case. Lucas: There's a chief marketing officer at a consumer goods company. She's been there for six years, she's built the brand team, she's delivered three consecutive years of growth. But she's also hit a ceiling. The chief revenue officer job opens up, and they give it to someone from outside with less experience. So she updates her network, interviews, and lands a C-suite role at a competitor with a twenty percent bump and a mandate to build her own team. Luna: That's the dream scenario, right? You've got the offer, you're ready to go. Lucas: Exactly. So she resigns. And within forty-eight hours, her CEO is in her office with a counteroffer. They match the new salary, they throw in a thirty percent bonus, they even hint at a board seat in two years. And they ask her to 'reconsider for the sake of the brand.' Luna: And that's the moment where most people start to waver. Because it's flattering, it's a lot of money, and it's the thing you wanted all along. Lucas: But here's the thing. The counteroffer is a signal, not a solution. It tells you that the company values you, sure, but it also tells you they knew they were underpaying you, and they chose not to fix it until you had one foot out the door. Luna: Yeah, and it also tells you something about the culture. The CEO isn't offering you a path forward, they're offering you a retention package. Those are two very different things. Lucas: Completely. And the data backs that up. There's a well-known statistic that a large percentage of executives who accept a counteroffer end up leaving within the first year anyway. The numbers range anywhere from sixty to eighty percent, depending on the study. And the reasons are almost never about pay. Luna: So what are the reasons? Because I think we both know it's not greed. Lucas: It's trust. You've announced you're leaving, which means the board now knows you're a flight risk. They may say they're happy you're staying, but they're also quietly lining up your successor. And you feel that. You're suddenly on the outside of the inner circle, even if nothing has changed formally. Luna: There's also the resentment factor. The people who didn't get promoted, the peers who now know you threatened to leave, the CEO who knows you were ready to walk. That changes the dynamic. Lucas: Exactly. And that's what the research shows. The counteroffer might buy you eighteen months of calm, but the underlying issues that made you look in the first place don't disappear. The ceiling is still there. The sponsor you didn't have is still missing. The strategic direction hasn't changed. Luna: So what should you do in that moment? You're sitting in the office, the CEO has just made an offer, and you need to respond. Lucas: First, don't say yes on the spot. Buy yourself time. Say something like, 'I appreciate this, and I want to think about it. Can we talk tomorrow?' That gives you a chance to decompress and think clearly, rather than making a decision on adrenaline and flattery. Luna: The second thing, I think, is to ask yourself the hard question. If the counteroffer had come six months ago, would you have stayed? If the answer is yes, then maybe there's something worth exploring. If the answer is no, then the money is just noise. Lucas: That's a really good test. And it's the one the CMO in our story actually used. She went home, she wrote down her reasons for leaving: no path to the C-suite, a CEO who didn't sponsor her, a strategy that was too conservative. Then she looked at the counteroffer and asked, 'Does this change any of that?' Luna: And it didn't. The title was still the old one, the board seat was a maybe, and the money was just money. Lucas: Right. So she went back to the CEO and she declined, respectfully. She said, 'I appreciate the offer, but I've made a commitment, and I'm excited about the new role.' And she left on good terms. That's actually a critical skill in itself — how you decline the counteroffer. Luna: Because burning the bridge is the last thing you want. You're an executive, you'll cross paths with these people again. Lucas: Exactly. And there's a strategic way to do it. You can even say, 'I'm flattered, and I'd like to keep the door open for future opportunities, but I've made my decision.' That keeps the relationship intact without leaving any ambiguity. Luna: So when is it actually worth accepting? Because I don't want to make it sound like the counteroffer is always a trap. Lucas: It's not always a trap. There are two scenarios where accepting might make sense. The first is if you're leaving for purely financial reasons, and the counteroffer genuinely addresses that gap, and you're otherwise happy in the role. The second is if there's a specific change in scope or title that was the real sticking point, and the company is willing to give it to you in writing. Luna: In writing — that's key. Anything verbal is worth nothing in six months. Lucas: And even then, you have to be honest with yourself about why the company is only offering this now. If you've been asking for a bigger mandate for two years and suddenly it's on the table, that's not a coincidence. That's a reaction to your departure, not a change in their values. Luna: So what's the one question you should ask yourself before you say yes to any counteroffer? Lucas: I'd ask this: 'What will be different in twelve months if I stay?' And if you can't point to something concrete — a new title, a new project, a new sponsor, a change in the strategy — then you're just getting a pay raise to stay in the same situation. Luna: And that's the trap. The money feels great for the first month, but by month six, you're back to feeling stuck. Lucas: Exactly. And that's why the CMO in our story stuck with her decision. She's now two years into the competitor role, she's built a team of twenty, and she's on the track she wanted. The counteroffer would have just delayed the inevitable. Luna: So, bottom line for our listeners: your leverage is the strongest at the moment of resignation, not after you've accepted the counteroffer. Lucas: That's the real takeaway. The counteroffer is a rhetorical move. It's designed to make you doubt yourself. But the reasons you started looking are rarely about money. And until you solve those, no amount of bonus is going to make you happy. Luna: I think that's a great note to end on. Next week, we're going to look at how to negotiate your first hundred days in the new role. Lucas: Looking forward to it. Until then, keep thinking about what you really want, not just what you're being offered.