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Chief
Your initial thought is right. This offer sounds like a downgrade from your current role in every way.
Why be creative? Why not just tell them I'd like you to match my current comp and lay out your current details.
Did the recruiter ask you where you were last at, comp wise? If so, I'd move on, they're just insulting you / wasting your time.
If they didn't ask & don't know and you like the company, I might say something to the effect of "while I am excited about the company and am happy to receive an offer, I'm afraid the comp. is significantly lower than my most recent role and is not commensurate to someone in this role with my skills & experience, based on my research". This should open the comp discussion.
This company has a business dev manager (accounts basically) handling the negotiation. He stated that he misunderstood what I said I was currently making. It's either an innocent mistake or complete BS. Either way, I think I'm going to pass. Too much of a step backwards.
What is your issue with where you are currently? You said last role, so are you currently in no role? Just trying to get more insight on your current situation.
Makes sense. Have you checked glassdoor or levels for salaries to compare from that particular company? That would be the best way to counter.