The fastest way to solve an unreasonable comp negotiation? Make the person asking for the raise build the business case for it.
Last month, a founder I coach got hit up with a massive request from one of their department heads.
Base salary bump and revenue share for the product they oversee. Oh, and an equity increase too. They wanted a piece of everything.
And yet, that product doesn't turn a profit. It breaks even, but only if you ignore the exec's salary. Once you factor that in, the whole thing is underwater.
Most founders in this spot do one of two things. They cave because they're terrified of losing the employee. Or they stonewall and create resentment that festers for months until the person quits.
Try handing them the P&L instead.
"Hey, you're running this department. Including your own salary. Show me the version of this P&L that supports you getting a base bump AND profit sharing. Show me what that looks like. Show me how you're going to drive that. Execute fast enough and we'll talk more equity."
Then shut up.
Either the person comes back with a real plan — in which case you've just gotten a department head who's thinking like an owner — or they don't come back at all. They quietly drop it. Because the moment they sit down with the actual numbers, they realize their ask wasn't grounded in reality.
You don't have to be the jerk who says no. Let the math do it for you.
Your job is just to make sure they're looking at the math.
If someone is asking to be paid like an owner, ask them think like one first. The ones who can will earn every dollar. The ones who can't will go quiet and you don't have to think about it any more.