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What are the different types of roles at a BioTech company?
Biotechnology is present in many fields, including agriculture, pharmaceuticals, chemistry, manufacturing sciences, and environmental protection. Because of its wide range of applications, a career in biotechnology allows you to work in various fields. These fields can range from Microbiologists to Crime Scene Technicians. This article will focus on three roles that are computation or software-based:
- Data Scientist: Big Data experts can help substantially improve medical innovation by using customized genomic sequencing to forecast illness development. A personalized health and wellness profile may be created based on genetic and lifestyle data.
- Software Engineer: Being a Software Engineer in a Biotech company is almost the same as being a software engineer anywhere else. Software engineers and designers develop, test, integrate, and support software applications, technical environments, operating systems, embedded software, data warehouses, and telecommunications software.
- Research Engineer: Research Engineers create, investigate, and test novel products and equipment in the biotech industry. They are active in a wide range of research and technology development operations. They are also in charge of enhancing existing technical procedures and developing new revolutionary technologies. In response to specific difficulties, research engineers seek improving solutions.
Albeit the negotiation process and tactics are transferrable across different departments within the Biotech and Big Pharma industry
BioTech vs. Big Tech Compensation
Even though most roles in the biotech industry require expertise and very strong technical knowledge - biotech and big pharma companies are known to pay less on average than most large-tech companies such as Amazon, Google, and Facebook.
Depending on size, some Biotech and Big Pharma companies can get quite competitive with their pay for Software Engineers, Data Scientists, and Research Engineers. Moderna, GSK, Genentech, NovaVax, and Vertex Pharmaceuticals are some of the highest-paying Biotech and Big Pharma companies. Moderna and Pfizer have solid reputations for quickly creating and distributing very effective mRNA vaccines to combat the spread of COVID-19.
While average compensation may be lower for Biotech and Big Pharma companies compared to big tech, the structure is very similar. Most Biotech and Big Pharma companies such as GSK, Gingko Bioworks, and Moderna have pay bands for each role and level. The expected base salary, bonus, and equity will align with a specific band per level (like most prominent tech companies like Google).
Compensation Structure at BioTech companies
Base Salary
Like most other roles, base salaries for Biotech and Big Pharma roles can vary depending on various factors, such as size, location, and industry. However, base salaries tend to be lower compared to big Tech Biotech and Big Pharma. Biotech salaries are generally lower than FAANG companies, depending on the level and role.
Annual bonuses are another component that can be coupled with the base salary. The annual bonus is usually non-negotiable and highly subjective to the company you are applying to. For example, GSK has a baseline 12% annual performance bonus, and Genentech has a 15% annual performance bonus.
Equity
Like other big-tech-cap, many (but not all) BioTech firms provide stock. Depending on the company’s size, equity can be given as either Restricted Stock Units (RSUs) or Stock Options:
Restricted Stock Units (RSUs)
Companies might also provide you with stock in the form of RSUs, or Restricted Stock Units. Unlike stock options, Restricted Stock Units are genuine shares of stock in the corporation that do not need to be exercised. Publicly traded firms or late-stage startups often provide RSUs. If the startup you're negotiating with isn't in its latter stages, RSUs are unlikely to be offered.
RSUs mean you don't have to wait until the firm goes public before buying back the options and selling them to earn the value; RSUs are yours and worth money. It's worth mentioning that RSUs aren't liquid (can't be sold rapidly) at private firms. Therefore RSUs from a significant company are more valuable in the near term than those from a smaller company.
Stock Options
Stock options are a significant component of how early-stage startups reward their employees and are often the major focus of the bargaining process. These firms want you to feel involved in their growth and development, and what better way to convey that than to give you a stake in the company in the form of equity? Please see our blog article for more information on negotiating your business stock.
Startups typically issue "stock options," which allow you the right to purchase a particular number of shares of the company's stock at a specified, discounted price - known as the "strike price," "grant price," or "exercise price."
Your offer will most likely lay out some terms for your equity offer, such as: “Upon joining, you will be granted the option to purchase 10,000 shares with a strike price of $0.35 per share and preferred share price of $1.”
The concept is that when the market value of the shares rises over time, you'll be able to purchase the stock at a significant discount, and your pre-tax profit will be the market price minus the preferred share price. So, in the above example, you could buy your shares for $0.35 per share, but the "market" value would be $1 when you join and theoretically much more in the future - so you would make at least $0.65 in profit (pre-tax) every share of equity you purchased.
A few important notes:
- Biotech startup equity tends to have a “cliff” - meaning you don’t receive any of your equity until you’ve been at the company for at least a year - and typically vests over four years.
- At a Biotech startup, having your equity vest (and purchasing your options) doesn’t mean you will automatically be able to sell it like you would at a public company. You’ll need to wait for some liquidity event (IPO or acquisition) before you would have a chance to sell any of your shares, so your profit is more theoretical than realized.
Note: Don’t be alarmed if you see Biotech and Big Pharma companies not offer any equity; this statement holds truer for the lower levels at these firms. For example, at Merck and Johnson & Johnson, you need to be at the Principal Scientist level (specifically on the pharma R&D side) to have RSUs as a part of the standard compensation package.
The table below shows a quick comparison between RSUs and stock options.
If you’d like to learn more about the different types of equity and gather startup-specific equity negotiation tips, check out our blog post here.
Signing bonus
Biotech and Big Pharma companies don’t necessarily add sign-on bonuses from the get-go; instead, they use them to make the offers more competitive and raise the overall compensation to avoid larger payouts over your tenure at the company. Sharing your leverage is critical for getting a possible sign-on bonus added to your total compensation. Leverage can be in the form of bonuses/equity you’re leaving at your current workplace, a promotion you are up for where your compensation will see an increase, competing offers, etc. A signing bonus is one of the simplest parts of an offer to add or enhance because it is paid out just once (or twice if it is a two-year incentive). You should never be afraid to request a signing bonus; the worst they can say is no!
Typically your offer letter may include a "clawback" clause, which means that if you leave the firm within a specified period, you may be compelled to pay back the signing bonus in whole or in part.
Top BioTech and Big Pharma Firms
Some factors to consider when evaluating potential employers include the company's mission and values, the support and resources available to employees, and the company's culture/work environment. Companies at the cusp of technological innovation and working on cutting-edge projects will have some of the best resources and opportunities.
Here are a few examples of companies that are often considered some of the most exciting Biotech and Big Pharma companies:
BioTech Negotiation Process
Before preparing for a negotiation, make sure you have a good understanding of both your financial and career goals. This will help you decide what you should be asking for and make you better prepared to negotiate effectively.
If you haven’t yet received an offer, here are a few things to consider during the interview process:
- Do not share your current compensation. In many states (e.g., California), it is illegal for companies to ask for this. If a recruiter asks you, you are certainly within your rights to say, "I don’t feel comfortable sharing that information."
- We do not recommend sharing your compensation expectations before receiving an offer. Most companies will pay very competitively and will be willing to negotiate after giving an initial offer. If you choose to throw out a high number when asked, that will increase the chance you are required to provide proof of a competing offer. Instead, if you’re asked for your pay expectations, we recommend you reply with, "I'm focused on the interview process and still researching market data. I am confident we will reach a number that works for both of us."
Negotiating a salary, equity, and signing bonus for a Machine Learning Engineer offer can be daunting. Still, with the proper knowledge and preparation, you can increase your chances of securing a fair and competitive offer. We recommend you:
BioTech and Big Pharma Negotiation Tactics
Recruiters commonly use a handful of sneaky tactics to help pull the negotiation in their favor — and it’s essential to be aware of them to avoid being taken advantage of. The most common tactics include putting time pressure on you with an exploding deadline, mentioning that the initial offer is non-negotiable (even though it is!), selling you on company growth and saying that your equity value will increase substantially, and promising to revisit pay shortly.
Some of the most common negotiation strategies that we use in rebuttal are:
- Putting pressure on the employer – Employers are often pressured to fill a position quickly. You can use this to your advantage by pressing them to offer you a higher salary by saying, “I know you’re trying to wrap up the negotiation - here’s what I’d need to sign.”
- Standing in a stronger position – If you have a competing job offer (or are currently employed), you are in a stronger negotiating position. You can use this to your advantage by asking what you want regarding salary, benefits, and equity.
- Sharing outside information – You can also use outside information to strengthen your position. For example, you could talk with a competitor about the compensation they might be offering. Recruiters can be great resources for this information, too!
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