Should You Share Your Salary with a Headhunter?
Introduction
Executive salary discussions remain one of the most sensitive aspects of senior-level recruitment. With new global pay transparency laws and evolving market expectations, executives now face complex decisions about when, how, and whether to disclose compensation details. These decisions not only affect individual negotiations but also have broader implications for industry practices.
Navigating the Legal Landscape
The legal framework surrounding salary history inquiries varies considerably. In the United States, although there is no federal prohibition, 21 states have enacted bans, with Massachusetts leading the way in 2016. Across Europe, the picture is mixed: while the adoption of salary history measures has been uneven, the European Union’s forthcoming Pay Transparency Directive—set to take effect by mid‑2026—will ban these inquiries and require employers to disclose salary ranges. In the United Kingdom, similar measures are currently under pilot, but a full ban has yet to be enforced. Meanwhile, countries such as India, Singapore, and Japan continue to allow salary-history questions with few or no restrictions.
Impact on Pay Equity
The primary goal of these legal changes is to reduce gender and racial pay disparities by breaking the cycle of historical wage imbalances. Early evidence from regions with salary history bans in the United States is promising. Overall wages have increased by about 5%, with women enjoying 8% increases and Black workers seeing gains of 13%. Furthermore, many jurisdictions are now requiring employers to provide salary ranges in job postings, enhancing transparency and potentially leveling the playing field for all candidates.
However, challenges remain. Information asymmetry, implementation difficulties for smaller organizations, and potential geographical discrimination are persistent issues. A significant concern is the trend of voluntary disclosure. Despite the bans, many candidates continue to share their past compensation details. Notably, men are approximately 12% more likely than women to disclose such information, potentially undermining the intended impact of these measures. Research also shows that voluntary salary disclosures have increased by 6-8% over time, creating an “unraveling” effect where more candidates feel compelled to reveal their salary history as others do.
The Executive Compensation Puzzle
At the executive level, compensation packages extend well beyond a base salary. Performance bonuses, equity, benefits, and other perks complicate salary ranges. For example, a £1 million package might be composed in numerous ways—details that may not align with an executive's previous remuneration or expectations. Presenting a blunt salary range early in the recruitment process can lead to misunderstandings, especially when negotiations later hinge on nuanced elements like stock options or bonus agreements. This complexity requires careful consideration and clear communication from both the candidate and the recruiter.
The Role of Executive Search Professionals
Executive search professionals play a critical role in bridging the gap between senior candidates and organisations. These experts act as trusted advisors during the recruitment process, helping to streamline negotiations and align expectations.
Should You Share Your Salary with a Headhunter?
The decision to disclose your salary history to a headhunter depends largely on trust and context. Experienced executive-level headhunters understand the intricacies of compensation and can offer valuable advice. By sharing your salary details, you enable them to quickly assess whether your expectations align with the role’s budget—saving time for both parties. For instance, if your current remuneration exceeds £250,000, it makes little sense for a recruiter to approach you with a role offering only £180,000.
However, there are potential downsides. In some cases, revealing your salary might lead a headhunter to unconsciously question your suitability if your current package does not align with the role’s guidelines. In later stages of the recruitment process, a search partner can provide strategic advice, helping you navigate negotiations and offering insights into broader industry trends and specific organisational benchmarks. In retained search maximising the firm’s compensation often depends on securing the highest possible total package for you—a strong incentive to advocate for your best interests.
A Personal Perspective
Drawing on my experience as a former headhunter, I believe that sharing your salary history with a headhunter is akin to a doctor examining your vital signs—it’s a standard part of the process, one that professionals are well-equipped to interpret. However, whether to disclose your salary directly to a potential employer is a more complex decision. It hinges on factors such as whether you are already well-compensated and whether you view the disclosure through an ethical lens. If your current package can serve as a powerful negotiating chip, or if you have strong ethical reservations about transparency, the decision requires careful thought.
Conclusion
As the landscape of executive compensation and pay transparency continues to evolve, so too do the strategies for navigating salary discussions. Whether you’re an executive candidate or an industry professional, understanding the legal context, the impact on pay equity, and the nuanced dynamics of disclosure can empower you to make informed decisions that benefit both your career and the broader market.
