Negotiating a Career in Industry
Although careers in industry once were the road less traveled for many physicians, they are increasingly being chosen as alternative careers, said Gregory Dennis, MD, head of immunology, US Medical Affairs at UCB, Inc., in Smyrna, Ga.
Physicians who choose to go into industry can pursue different career paths that offer specific positions and compensation packages. A general research track includes positions in laboratory investigation (i.e., drug discovery, preclinical trials), a clinical research track includes positions necessary to conduct clinical trials (i.e., medical directors, monitors, safety assessment), and a medical affairs track includes positions necessary to pursue U.S. Food and Drug Administration review and large-scale manufacturing (i.e., late-phase research that is field based, medical information, outcomes research, and pharmacovigilance).
Dr. Dennis focused his talk on negotiating the compensation package once an offer is made. After ensuring that the offer is in writing, he emphasized the need to carefully review the package offered to identify any areas for improvement. Among the negotiable items, he said, are base salary, sign-on bonus, initial stock option or restricted stock award, start date, transition period, car rental, and moving expenses. He emphasized that the most important piece of the offer to make a well-informed decision is an understanding of the salary particulars. He highlighted key components of salaries that can be negotiated including the type of salary (i.e., stated annually, monthly, or both), frequency of receiving a paycheck, the timing of the salary review, and different types of bonuses, including a signing bonus and performance bonus. He recommended at least asking for a sign-on bonus and said that this could be quite substantial, depending on how much the company wants a particular person.
When negotiating these items, he suggested first investigating the compensation elements for persons in similar positions and emphasized the need to refrain from making strong demands. “A little bit of diplomacy goes a long way,” he said.
Items in the contract that are less negotiable or not open to negotiation include the annual bonus target, annual stock option/restricted stock award, annual long-term incentive cash award, and vacation period.
Although one may choose one track initially, Dr. Dennis emphasized that transitioning between career paths is possible. Overall, he emphasized that compensation in industry is commensurate with one’s skill set and is competitive with other endeavors requiring similar levels of expertise.
Mary Beth Nierengarten is a freelance medical journalist based in St. Paul, Minn.
