Recruiting & comp glossary.

A

Active candidate

A job seeker who is currently and openly looking for a new role — applying, networking, and responding quickly. Contrast with a passive candidate, who is employed and not actively searching but open to the right approach.

Applicant Tracking System (ATS)

Software used to manage job applications and move candidates through the hiring pipeline. Common systems include Greenhouse, Lever, Ashby, and Workday; Crimson integrates with all of them.

At-will employment

A US employment arrangement in which either the employer or the employee can end the relationship at any time, for any lawful reason, without advance notice — subject to contractual and legal exceptions.

B

Base salary

The fixed, guaranteed cash an employee is paid before bonus, commission, or equity. It's the anchor of any offer and the figure most placement fees are calculated against.

Bonus

Variable cash paid on top of base salary, usually tied to individual, team, or company performance. A "target bonus" is expressed as a percentage of base (e.g., a 20% target on a $200k base).

Boolean search

A sourcing technique that combines keywords with operators like AND, OR, and NOT to precisely filter candidate databases, résumé banks, and LinkedIn — for example, ("VP Engineering" OR "Head of Engineering") AND SaaS NOT recruiter.

C

Cliff

A period at the start of a vesting schedule during which no equity vests. On a standard four-year grant with a one-year cliff, an employee who leaves before month twelve keeps nothing; at the one-year mark, the first 25% vests all at once.

Confidential search

A search conducted discreetly, without publicly naming the hiring company — used when replacing an incumbent who's still in seat, or when a company doesn't want competitors to know it's hiring. Candidate confidentiality is protected in parallel.

Contingent search

A recruiting engagement in which the firm is paid only if it makes the placement. Lower upfront risk for the employer, but typically used for less senior or less specialized roles than retained search.

Counter-offer

A raise, promotion, or expanded role a current employer offers to keep an employee who has accepted a job elsewhere. Our data shows most people who accept a counter-offer leave within twelve months.

Compensation

The full package an employee receives in exchange for their work — base salary, bonus, equity, and benefits. Crimson's Compensation Intelligence benchmarks each component from live placement data.

D

Direct hire

A permanent, full-time placement made directly onto the client's payroll — as opposed to a contract or temp-to-hire arrangement. The core of most executive and senior recruiting work.

Double-trigger acceleration

An equity provision in which unvested shares vest early only if two events occur — typically a company acquisition and the employee being terminated without cause afterward. Common in executive offers to protect against a change of control.

E

Equity refresh

An additional equity grant given to a current employee — often as their original grant nears full vesting — to keep total compensation competitive and retain them. See our guide to equity refreshes.

EEO (Equal Employment Opportunity)

The principle and body of US law prohibiting employment discrimination on the basis of protected categories such as race, sex, age, disability, religion, and national origin. Crimson is an equal opportunity employer.

Executive search

The specialized recruiting discipline focused on senior leadership — VP, C-suite, and board roles. Usually conducted as a retained engagement with deep market mapping, assessment, and confidentiality.

G

Garden leave

A period, common in executive contracts, during which a departing employee remains on payroll but is kept away from work and clients — protecting confidential information and client relationships before they join a competitor.

Golden handcuffs

Financial incentives — typically unvested equity or deferred bonuses — structured to make it costly for a valuable employee to leave. They "handcuff" talent to the company until the money vests.

Golden parachute

A generous severance package guaranteed to a senior executive if they're terminated following a change of control, such as an acquisition. Designed to align leadership with a sale that's good for shareholders.

H

Headhunter

Informal term for a recruiter who proactively approaches employed, in-demand professionals about a specific role, rather than waiting for applications. Most executive search is, in effect, headhunting.

Hiring manager

The person a new hire will report to and who owns the final hiring decision — distinct from a recruiter or HR. Aligning early with the hiring manager on the scorecard is the single biggest driver of a fast search.

I

ISO (Incentive Stock Option)

A type of employee stock option with potentially favorable US tax treatment if holding-period rules are met. Available only to employees and subject to annual limits — contrast with NSOs.

NSO (Non-Qualified Stock Option)

A stock option that doesn't qualify for ISO tax treatment. Can be granted to contractors, advisors, and board members as well as employees, and is taxed as ordinary income at exercise on the spread.

N

Non-compete

A contract clause restricting an employee from joining a competitor for a set period after leaving. Enforceability varies widely by state, and recent regulatory action has sharply limited their use — see our note on the FTC ruling.

O

Offer

The formal proposal of employment, specifying title, start date, base salary, bonus, equity, and benefits. A written offer letter usually follows a verbal offer and precedes a signed acceptance.

Onboarding

The structured process of integrating a new hire in their first weeks and months. Strong onboarding is a leading predictor of retention — especially for senior leaders in their first 90 days.

P

Passive candidate

A professional who is employed and not actively job-hunting but would consider the right opportunity. The majority of senior talent is passive, which is why proactive sourcing matters so much at the executive level.

Percentile

A statistical measure showing where a value falls in a distribution. In compensation, the 50th percentile (median) means half the market pays more and half pays less; the 90th percentile represents the top of the range.

Placement

A completed hire made through a recruiting engagement — the moment a candidate accepts and starts. Placement fees are the primary way contingent and retained search firms are paid.

R

Retained search

An executive search engagement in which the firm is paid a staged retainer regardless of outcome, in exchange for an exclusive, in-depth search. The standard model for C-suite and board roles.

RPO (Recruitment Process Outsourcing)

An arrangement in which a company hands part or all of its recruiting function to an external provider that operates as an embedded extension of the team. Learn more about our RPO service.

RSU (Restricted Stock Unit)

A grant of company shares that converts to actual stock as it vests, with no purchase required. The dominant form of equity at public companies and late-stage startups — taxed as income when it vests.

Requisition (req)

The formally approved authorization to fill a specific open role, including budget, level, and headcount. A search doesn't officially begin until the req is open.

S

Scorecard

A structured definition of what success in a role looks like — the outcomes, competencies, and must-haves — used to align the panel and assess candidates objectively instead of on gut feel.

Sourcing

The proactive research and outreach phase of recruiting — identifying, mapping, and contacting potential candidates before any of them has applied. The engine behind every executive search.

Sign-on bonus

A one-time cash payment offered to a new hire, often to offset unvested equity or a bonus they're forfeiting by leaving their current employer. Frequently subject to a clawback if they leave within a year.

T

Time-to-fill

The number of days from opening a requisition to a candidate accepting the offer. A core pipeline-health metric; Crimson's analytics forecast it live as market conditions shift.

Total compensation

The full annualized value of an offer — base salary plus expected bonus, the annualized value of equity, and sometimes benefits. The number to compare when weighing offers, since base alone can be misleading.

V

Vesting

The process by which an employee earns the right to equity over time. Unvested shares are forfeited if the person leaves; vested shares are theirs to keep. See how to negotiate vesting terms.

4-year / 1-year cliff vesting

The most common startup equity schedule: shares vest over four years, with a one-year cliff before any vests. After the cliff, 25% vests at once, then the remainder vests monthly over the next three years.