The CAIO is becoming more of a strategically important role for most if not all organizations as they look to capitalize on the promise of AI technologies across the enterprise. Before you sign on the dotted line, however, here are five tips for the negotiating process that’ll help to further prepare you for the long haul.
There’s clearly a lot to consider in a new role, such as company stability and financial health, culture and values, career growth opportunities, job role and responsibilities, work environment and flexibility, and compensation and benefits. But here, we’re focusing on just a few specifics in the written job offer, assuming the rest is a great fit for you so far.
Confirming the C-Suite position
Since CXO roles outside of the usual five or six tend to be quite transient, the first thing when exploring the position is to find out why the organization is filling the role, with whom they expect you to collaborate, and their long-term vision and commitment to the role.
Some organizations may be pivoting to make AI a core part of their business model, products, and services, while others may be looking to simply catch up with the rest of the pack. It’s important to understand if the organization is looking to lead with AI, and has the capability to do so, or simply be a player and make it window-dressing. Are they being reluctantly pushed by the board, investors, and market trends, or is this something the whole company is behind and in it for the long-haul? And is the whole C-suite on board with the new CAIO role or are there some detractors who may work against you in the future? Why are they hiring externally versus sourcing in-house? If the former, how does the C-suite and other LOB leaders feel about it, and are they supportive of the new role?
Once you’ve investigated the motivation behind the new position and the organizational politics, be sure the C-suite position and what this entails is written in your job offer. Too often the chief title is used, but without an actual position or influence on the executive leadership team.
Delineating compensation
As you discuss base, bonus, and equity, be specific and find out exactly what their pay range actually is for this emerging role and how that compares with market rates for your location. For example, some recruiters may give you a higher number early on in discussions, and then once you’re well bought-in to the company after several interviews, the final offer may throttle things back.
A common approach might be for them to share an amount early on as base, but then later say that was base plus bonus. Be sure to clarify early on exactly what base and bonus are specifically. Another similar tactic is to share an amount early on and then use the excuse that there’d be a mutiny among the C-suite later on to get you to come down. Set clear expectations early, and be prepared to withdraw your candidacy if any downward-revised amount later on is too far below your household needs.
On the bonus side, find out how often bonuses are fully paid out and recent history since some companies tend to pay out at 100% every time while others can range from 0 to 100%, and yearly payouts of 50% may not cut it for you. Likewise it’s important to understand the equity side and whether this is automatically granted, and the vesting schedule, or something you need to purchase yourself to buy in.
Performance metrics for the near and long term
When it comes to the role and responsibility, it’s important to fully understand the performance metrics by which you’ll be measured. Since CAIO roles are a bit like those of the chief innovation officer, much of the work is, and should be, an investment in the future of the company as much as it is about near-term deliverables in the year ahead.
As a CAIO, you don’t want to be measured the same as the lines of business, or penalized if they fall short of quarterly or yearly sales targets. Ensure your performance metrics are appropriate for the role and the balance you’ll need to strike between near-term and longer-term objectives. For certain, AI should enable near-term productivity improvements and cost savings, but it should also enable longer-term revenue growth via new products and services, or enhancements to existing offerings. With this in mind, it may make sense to ensure your performance targets are equally distributed across near-term and longer-term deliverables and outcomes.
You can test this a little with the organization during the interview to understand how they view the role and how they view innovation in general. If they see it as corporate overhead, that can be a potential warning sign. Remember that innovation is often the first to get cut in hard times.
Location, location, location
Location is another often highly sensitive area for organizations. While they may say the position is remote, find out exactly how much travel is involved to client sites, for example, and how often you’re expected to be in the office. Be sure you’re comfortable with what’s written in your offer letter since that’ll give the best indication of the organization’s intent.
It’s good to also consider the mix of staff at the organization and how many are based in the office versus remote. If the CAIO role and the rest of the technical team is remote, but the LOB team is fully office-based, this can also create tension, which can lead to a difficult work environment.
Tech companies typically have an easier time with this, but if your new role is in an industry that’s historically been office-based, you may see a lot of resistance to remote work even though it’s been around and well accepted for over 20 years in the tech arena. The goal is to ensure you’re not penalized for being remote if the work can be done that way, and you’ll need full support and protection around this.
Intellectual property and severance
If you’re interviewing for a CAIO role, it’s likely you may have some pre-existing IP that belongs to you. Be sure to review the IP agreement that comes along with your offer and make sure you’re allowed to own all pre-existing IP.
Companies sometimes place a clause in their legal agreement that states they own all pre-existing IP. Get that clause removed and itemize your pre-existing IP if needed to ensure it stays under your ownership. Companies have a right to own any IP that’s created during the course of your employment, but you want to be sure they don’t overreach to include anything that’s pre-existing.
And as a senior executive, you’ll also want to look into the severance pay you may receive. Instead of the typical one week per year worked, try to negotiate something that reflects your seniority and the amount of time it may take to find another position.
You may not be able to negotiate all of these items to your favor when reviewing your written job offer, but by discussing them early on throughout the process — at the appropriate times and with the appropriate people of course — you’ll be able to protect yourself as much as possible in an at-will employment relationship.
