Your offer letter is good if it states specific numbers for salary, bonus, and equity, spells out vesting in exact terms, keeps restrictive clauses narrow, clarifies severance, and leaves no ambiguity about your title or reporting line. Score each factor below and add up how many your letter actually meets.

Most people read an offer letter once, feel a general sense of "seems fine," and sign. That's not really a review, it's a vibe check. A proper review means going line by line against a fixed set of factors, the same way you'd check a lease or a loan document. Below is the framework we built into Offer XRay after reading through hundreds of real offer letters, condensed into five checklist items you can run against your own document right now.

Factor 1: Does It State Specific Numbers for Salary, Bonus, and Equity?

A good offer letter states an exact base salary, a defined bonus target as a percentage or dollar figure, and a specific equity grant size, not phrases like "competitive compensation" or "bonus eligible." If any of the three is vague, that's your first red flag, and it's worth asking for the number in writing before you accept.

Checklist item: pay specifics

Base salary is a fixed dollar figure, not a range with no committed number
Bonus target is stated as a percentage of salary or a dollar amount, with the criteria described
Equity grant lists a share count or dollar value, plus the vehicle (RSUs, options, etc.)
Sign-on bonus, if offered, states the amount and any clawback conditions

A recruiter saying "we're offering a competitive package" over the phone isn't compensation, it's a placeholder. If the letter doesn't repeat those numbers in writing, they're not enforceable, and you should ask for an amended letter before you sign anything.

Factor 2: Are Vesting Terms Spelled Out in Detail?

Vesting terms should specify the total vesting period, the length of the cliff, and the vesting cadence after that, typically a four-year schedule with a one-year cliff and monthly or quarterly vesting afterward. If the letter just says "subject to standard vesting" with no numbers attached, you don't actually know what you're getting.

Checklist item: vesting specifics

Total vesting period is stated (commonly four years)
Cliff length is stated (commonly one year, meaning nothing vests before that date)
Vesting cadence after the cliff is specified (monthly, quarterly, etc.)
Grant date is defined, since a delayed grant date can quietly push your entire schedule back

A one-year cliff is standard and not a problem by itself. The problem is when the letter references "the company's equity plan" without including the actual numbers, which means you're being asked to sign based on terms you can't verify. Our offer letter analyzer breaks the equity math down against your salary so you can see the real value, not just the headline share count.

Factor 3: Are Restrictive Clauses Narrow in Scope?

A restrictive clause, like a non-compete or non-solicitation agreement, is reasonable when it's limited to a specific geography, time period, and set of direct competitors, not an open-ended ban on working in your entire industry. Broad, vague restrictive language is the single biggest reason candidates should slow down before signing.

Checklist item: restrictive clauses

Non-compete, if present, names specific competitors or a narrow industry definition, not "any similar business"
Duration is 12 months or less, or matches what's typical for your state and role
Geographic scope is stated, not left open-ended or worldwide
Non-solicitation of clients or coworkers is limited to a defined time window
Arbitration clause, if present, is disclosed clearly, not buried in a referenced separate document

Some states, including California, restrict or void non-compete enforceability entirely, so the same clause can mean very different things depending on where you'd actually work. If a clause reads broad and vague, that's usually a sign it was copied from a template and never tailored to your role, which is worth raising directly with HR.

Factor 4: Are Severance and At-Will Terms Clear?

Severance terms should state whether severance exists at all, what triggers it, and roughly how it's calculated, rather than leaving it to "company discretion" with zero detail. At-will language is standard in most US offers, but a good letter still explains what it does and doesn't cover.

Checklist item: severance and at-will terms

Letter states whether severance is offered at all (many offers include none, which is worth knowing upfront)
If severance exists, the trigger conditions are described (layoff, termination without cause, etc.)
Notice period, if any, is specified
At-will status is stated plainly, without unusual carve-outs that limit your ability to leave

At-will employment being standard doesn't mean it's unimportant to understand. It means either party can end the relationship at any time, for almost any reason, which is exactly why the severance section matters more than people assume when reading it the first time.

Factor 5: Is the Role Itself Unambiguous?

Your job title, start date, and reporting structure should all be stated as fixed facts in the letter, not described in a way that leaves room for the role to shift after you accept. Ambiguity here is a quieter risk than a bad compensation number, but it causes just as much post-hire frustration.

Checklist item: role clarity

Job title matches what was discussed during interviews
Start date is a specific date, not "to be determined"
Manager or reporting line is named or clearly described
Work location and remote/hybrid policy are stated, not left to a separate handbook you haven't seen
Any promised title changes or promotion timelines are written into the letter, not just mentioned verbally

If a recruiter promised a title bump "after six months" but the letter doesn't mention it, treat that promise as informal until it's in writing. For the full line-by-line version of this review, our offer letter checklist walks through each clause in more depth.

How Do You Score Your Offer Letter?

Score your offer one point per factor above, for a possible total of five. A letter scoring four or five is genuinely strong, a three suggests a few points worth clarifying before you sign, and anything two or below means you should go back with specific questions.

4-5 out of 5: Sign with confidence

Your offer states real numbers, spells out vesting, keeps restrictions narrow, and leaves nothing ambiguous about the role. You can still negotiate on the merits, but you're not signing blind.

3 out of 5: Ask before you sign

A few gaps don't necessarily mean a bad offer, but they mean unanswered questions. Send a short, specific email asking for the missing detail in writing rather than assuming it'll work out in your favor later.

2 or below: Slow down

Multiple vague or missing terms is a pattern, not a coincidence. That doesn't automatically mean walk away, but it does mean you need real answers before you commit, especially on compensation numbers and restrictive clauses.

Running your letter through the full offer letter analyzer does this scoring automatically, flagging each factor and generating specific questions to send back, which saves the manual line-by-line pass if you'd rather not do it yourself.

Frequently Asked Questions

What's a passing score for an offer letter?

A score of four or five out of five, meaning most or all factors, specific pay numbers, clear vesting, narrow restrictive clauses, stated severance, and unambiguous role details, are present. A score of three or below is worth clarifying before you sign.

Can a low score mean I should reject the offer?

Not necessarily. A low score usually means information is missing, not that the offer itself is bad. Send a written follow-up asking for the specific missing details; a company willing to clarify in writing is a reasonable sign, while resistance to putting terms in writing is a bigger concern.

Does a narrow non-compete clause matter if my state doesn't enforce them?

It's still worth checking, since enforceability varies by state and can change with new employment. A narrow clause is lower risk regardless, and it's easier to negotiate down before signing than to challenge later. See our offer letter checklist for state-specific considerations.

How long should reviewing an offer letter take?

A careful manual review against this framework typically takes 15 to 20 minutes for a standard offer letter. Using an offer letter analyzer shortens that to a few minutes by automating the factor-by-factor check and flagging gaps directly.

Key Takeaways

Score your offer against five factors: specific pay numbers, detailed vesting terms, narrow restrictive clauses, clear severance and at-will language, and unambiguous role details.
A score of four or five out of five means the offer is strong enough to sign with confidence, negotiating on merit rather than missing information.
A score of three or below means real questions remain, ask for the missing details in writing before you sign anything.
Verbal promises about title bumps, bonuses, or timelines don't count unless they're written into the letter itself.

If you'd rather not do the line-by-line pass yourself, Offer XRay runs this exact scoring framework against your uploaded offer letter and generates the follow-up questions for you. Check pricing for current rates, or read the full offer letter analyzer breakdown to see how the tool works end to end.

Is My Offer Letter Good? A Scoring Framework You Can Apply Yourself