[5] Highest-Paid CEOs. Infographics Seed stage salaries - for companies that have raised less than $2 million in total funding - seem to be still recovering from the COVID crisis, and the overall pay there is down from $120,000 in 2019. Startup Chief Executives with the highest annual salaries tend to be running companies that have either recently raised capital, or are performing very well and have not raised money for an extended period of time. Jobs in business are in increasing demand, requiring workers with at least a bachelors degree and moderate to advanced technical skills, with the use of data often a required job function. Upcoming Events and Webinars The average S&P 500 company's CEO-to-worker pay ratio was 324-to-1 in 2021. The typical worker's annual compensation grew just 11.9% within the same period. Chief Technology Officer (CTO) $234,700. Weve kept these previous salary analyses below. The average S&P 500 company CEO made 299 times the average worker's salary last year, according to AFL-CIO's annual Executive Paywatch report. The largest growth appeared among companies who raised between $5-10 million among this group, average CEO salaries jumped 12% from $145,000 in 2018 to $162,000 in 2019. More, Recently searched related titles: On-demand Webinars, Rewards Executive salary has recently become a controversial topic, causing some high earners, such as Facebook founder Mark Zuckerberg and former Twitter CEO Jack Dorsey, to accept little or no salary at all. Accelerate Your Workforce into the Future Aon plc. It operates through Retail and tZERO segments. In 2020, approximately 36% of companies reduced their chief executive compensation during COVID. According to Bloomberg, in 2020, the highest-paid CEO was Teslas Elon Musk, who earned the staggering $6,658,803,818. Last year, former . For companies with total funding of $2 million or less, average CEO salaries increased just $5,000 in 2019. Even though there arent many people in this group, they usually shift the CEO pay scale toward the seven-figure or eight-figure level. Design by Lucila Romero. Weve found that CEOs in some industries have higher average salaries than others. ), and the companys industry. Reviewed by Andrew Schmidt. Affordable Monthly Bookkeeping for Startups, Key terms, tips and tricks, free financial models, taxes and more, Kruze is a leader in bookkeeping services for startups, We get your startup ready for the VC process, Projections, budgets and FP&A help for seed venture funded companies, Outsourced CFOs to help manage your growing startup, Industry specific expertise in bookkeeping, tax, FP&A and beyond, Kruze is a leader in startup tax filings, advice and more. And if you are interested in how COVID impacted compensation in 2020, skip to How Did the Covid Pandemic Affect CEO Salary? The average CEO salary in the United States is $812,100 as of January 26, 2023, but the range typically falls between $613,800 and $1,046,300. CEO pay: $14 million. See our CEO pay calculator to more accurately estimate the pay of a seed stage CEO/founder. While the spread of compensation by stage of financing (i.e. Haje Jan Kamps @ Haje / 7:00 AM PDT May 9, 2022. In 2018, CEOs of hardware startups had an average salary of $118,000, which rose 14% to $135,000 in 2019. SPOKANE, Wash., March 01, 2023 (GLOBE NEWSWIRE) -- Today Avista (NYSE: AVA) filed a request with the Public Utility Commission of Oregon (PUC) to increase natural gas base rates. Moreover, startup Chief Executive pay can be difficult to evaluate, especially when CEOs set their own salaries. Chief Executive Officer (CEO), Non-Profit Organization, Chairman, Recently searched companies with related titles : (or $223,000 to $275,000 with benefits and bonuses) According to Salary.com the median base salary for a CFO in the United States is $362,030, and the median total compensation package (including bonus, healthcare, and retirement) is . Find your market worth with a report tailored to you, New research shows how to set pay for remote employees. For the most lightly funded tech companies, the concept of ramen profitability encourages founders to take no salary to keep expenses minimal and make the company more attractive to investors. million# $500#to# $999.9 million# Median&CEO&Base&Salary&by&Company&Revenue& as&a&%of&Overall&Median& 0% 100% 200% 300% 400% 500% 600% 700% 800% <$2# million# $2#to# $4.9 million# $5#to# $9.9 million# Median# $10#to# $24.9 million# $25#to# $49.9 million# $50#to# $99.9 million# $100#to# $249.9 million# $250#to# $499.9 million# $500#to# $999.9 . Again our data shows that the typical Series A CEO is pay is about $180,000 to $190,000 per year. Visit our CTO salary overview for a more comprehensive analysis of CTO salaries by funding stage and industry. Not the job you're looking for? This has received a wide range of criticism leveled against it. According to the website PayScale, Dollar General cashiers and sales associates can expect to earn anywhere from $7 to $12 per hour, with the . Salary information is updated daily. Our analysis offers the first opportunity for rewards professionals to preview pay decisions for the 2020 fiscal year, rather than pay decisions for 2019 disclosed in 2020 proxy statements. Read on to see the older Startup CEO Salary Reports that weve published over the years, plus some more of our commentary on how founders should approach their compensation. The most recent data on Salary.com shows that Kelly earned a total financial package of $7,653,743of which $750,000 was in salary and the rest was due to stock awards, bonuses and "other . They are in charge of all employees, make decisions that affect overall workflow, and make strategic decisions related to the company's goals and strategies. Startup CEOs pay varies by industry and the amount of venture capital funding the company has raised, with companies that are more highly funded earning a higher salary. Talent Assessment Boeing's CEO at the time, Dennis Muilenburg, was fired and walked away with about $58.5 million. That means the CEOs there earned 50% more than the average. Were not talking about anything extravagant, but enough to live a life outside of the business. This number can vary from $43,000 in the 25th percentile to $156,000 in the 75th percentile, with the 90th percentile at $274,500. Chief Executive Officer is responsible for the short and long-term profitability and growth of the company. Use our tool to get a personalized report on your market worth. But how much a startup CEO makes mostly depends on several factors. Apple. In 2022, chief executives at early-stage companies that have raised over $10 million in financing were paid just under two hundred thousand dollars a year, $199,000. When you build something of value and valuations are going up, you wont mind doing a small secondary. Profit Sharing. Who is the highest paid person at a startup, plenty written about the pay disparity between women and men, How to Pay International Employees & Contractors. The Average private company CFO Salary in 2022. The Glassdoor community relies on people like you to share accurate salary info to promote fair compensation everywhere. Before you decide whether variable pay is right for your org, get a deeper understanding of the variable pay options and the cultural impact of pay choices. SaaS was the top performing industry by CEO salary in 2020. We have presented you with CEO salary data the last two years. Profit Sharing. There are many companies that I have worked with whereas the entire operation consisted of 20 employees and the company makes 28mm. Obviously there is more to being a CEO than just these 7 best practices, but they are a great place to start. Chief Human Resources Officer (CHRO) $250,000. In 2019, it was $131,000 and in 2020, salaries ranged around $130,000. Lets pay it forward! We had hoped that this expanded difference would shrink in our 2022 data, but unfortunately it did not. The average salary for a President and CEO is $173,422. However, the average hides some interesting nuances which may be driven, in part, by changes in the fundraising environment in late 2021/early 2022. Roughly, for every additional $1,000,000 raised, a startup CEO will take home between $4,000 and $5,000 more in annual salary. The middle 57% made between $122,107 and $307,254, while the top 86 percent earned $678,008. The other major surprise we noticed was that eCommerce companies are paying their CEOs much more than they had in the past $141,000 for 2022. that oversees more junior President and CEOS, this experience can increase the likelihood to earn more. Company's Annual Revenue. Startups with $10 million or more in funding saw their average Chief Executives pay rise 8% from $160,000 in 2018 to $173,000 in 2019. Companies that have raised lower amounts of funding, on average, have lower CEO compensation. Average employee pay: $132,220. The average Chief Executive Officer salary in the United States is $812,010 as of January 26, 2023, but the range typically falls between $613,763 and $1,046,244. Terms of Use This data suggests that companies with greater access to capital pay their CEOs more, while those that are more lightly funded set lower levels of compensation. All rights reserved. Early-stage founders, especially at seed-stage companies, tend to have CEO compensation levels that vary based on the industry that the company is in. Why do people leave their jobs? According to Zip Recruiter, the highest paying state for CFOs is . Meanwhile, the average U.S. worker saw a wage increase of $1,303 per year over the past decade, earning on average just . Our analysis offers the first opportunity for rewards professionals to preview pay decisions for the 2020 fiscal year, rather than pay decisions for 2019 disclosed in 2020 proxy statements. CFO salary ranges also differ from state to state. $1.0M $3.6M $40.8M $14.3K. Chief Marketing Officer (CMO) $230,735. There are startup CEOs who choose to be paid a minimal salary to set a good example for the firm and foster a culture of lean efficiency. For companies with revenue below $10 million, median CEO total direct compensation is $200,000. Becker says companies may start increasing CEO salaries above $1 million now that the . PRESS RELEASE. And in 2021, the average salary popped back - but thats not the full story, as youll see as we dig into the numbers. You are probably eligible, Hiring veterans and felons? Company Stage. Pay, Whether you are hiring a single employee , or an entire department of, The labor market is a strange place right now. Comment. Lets dive into why we think there are notable difference by industry. So it does pay to be good at fundraising! An average CEO of a small to medium-sized company may expect to get a six-figure compensation in the low 200s. Of the survey respondents, 70% pay dividends to shareholders. One of the easiest ways to do that is pay yourself the right amount. The average yearly salary of a chief financial officer (CFO) can vary based on a number of factors, but the median compensation for a CFO in . As weve seen in the past, biotech and pharmaceutical companies tend to have the highest CEO compensation, with seed funded companies paying their Chief Executives $161,000. The specific job duties that are required from a CEO will vary depending on what type of organization they happen to be the leader of, as there could be a wide range of job Read more, Our data indicates that the highest pay for a Chief Executive Officer (CEO) is $312k / year, Our data indicates that the lowest pay for a Chief Executive Officer (CEO) is $75k / year. Having said that, these people were already affluent before the IPO. In 2019, we analyzed 125 startups. In essence, whatever the board wants, a CEO relays that to his team and they devise strategies to make that happen. Publicly traded companies are required to disclose the pay ratio between their chief executive and median employees. Did you know even money losing startups can get up to $250,000? Of those making reductions, nearly 50% reduced the CEOs salary by 30% to 50%. With wages that start virtually universally above $200,000 per year, the average Chief Executive has a pretty hefty salary and is the top earner for the company. Image Credits: Nuthawut Somsuk / Getty Images. That is because the majority of workers believe CEOs make $1 million each year. Base Salary. It's also importa. Looking by year, for every dollar in salary men earned, female CEOs earned: The setback in salaries for female startup CEOs is troubling, especially considering that the market was much closer to parity in 2019, prior to the COVID crisis, said Vanessa Kruze, CEO of Kruze Consulting. So if your company brings in $10 million in revenue, limit your focus to companies between $5 million and $20 million in revenue, give or take. Biotech CEO salaries remained relatively unchanged year over year, coming in at $147,000 in 2019. Of course, read our answers to the two logical follow up questions: When can a startup CEO take a raise - well tell you what the data says! Weve used data from over 200 seed and venture-funded startups to identify the average annual salary earned by these companies CTOs, and discovered that CTO salaries are actually larger than CEO salaries for startups in the seed stage. VCs expect startup CEO salaries to be just right, but often provide limited guidance on what that actually means. Those that have already made the climb Overstock.com, Inc. operates as an online retailer in the United States and internationally. Get Salary Data on All Global A shift towards, Handling involuntary termination is a likely occurrence for human resources managers and, Return better results with Payscale job search, Compare real living costs across different states, Consider potential directions your career can take, Calculate the 20-year net ROI for US-based colleges, Are you the kind of person who struggles to get a handle, Learn where the best career earners attended college, The average salary for a President and CEO is $173,422, An entry-level President and CEO with less than 1 year experience can expect to earn an average total compensation (includes tips, bonus, and overtime pay) of $90,000 based on 6 salaries. $21M to $99M. The U.S. federal minimum wage is $7.25 per hour. However, as the year ended and many technology companies recovered - and as venture funding continued at unprecedented levels - boards and executives felt comfortable increasing executive compensation to pre-crisis levels., Compared to Their Male Counterparts, Female CEOs Took a Pay Cut During the Pandemic. $4k - $146k. Seed, Series A, Series B, etc.) A CEO with a $1 million salary may also receive a $700,000 bonus. That figure increases to $1 million for companies with . Weather it be the main wheel to run 20 million in profitable sales helping Lloyd's Refrigeration Inc. reach their second highest yearly earnings since 1966, in 2008. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The same trend was true for the median startup CEO salary. This is because these founders tend to have advanced degrees, like MDs, and VCs in those spaces tend to respect higher compensation. Leading into 2021, the female leaders moved their salaries up over $30,000 - however, the gap between male and female CEOs salaries did not close vs 2019. with 0 savings to debt-free, 120k in savings, automated investing, and having the ability to invest in a female-owned company called Blender Bombs that I've . The average bonus for a President / CEO is $85,629 which represents 26% of their salary, with 69% of people reporting that they receive a bonus each year. Across the 350 largest companies in the United States, the average CEO made $14.5 million in . And, if youre making a market salary, you wont feel compelled to make the wrong decision for the company. Kruze Consulting continues to advise founders to accept salaries as soon as theyve acquired funding. $5k - $144k. Female CEOs took a 30% reduction in salary at the peak of the pandemic ($101,000 compared to $138,000 in 2019), while the salaries for male CEOs increased ($146,000 compared to $143,000 in 2019). Not paying yourself enough can turn you into a bad decision-maker. Rethink Location Strategy, Articles They span the typical range of U.S. startup industries including biotech, eCommerce, fintech, hardware, SaaS and more. These executives ran some of the largest corporations in the . Expect us to publish future studies on other startup executive pay. Radford Data & Analytics The increase in CEO pay for 2022 brings back the overall, up and to the right trend that weve observed in the average CEO (and founder) pay since 2018. The analysis comes from an anonymized dataset comprising more than 250 venture-funded companies and representing more than $2 BN in funding. This years SaaS and Fintech founders are back to paying themselves more or less the typical amount of compensation, at $123,000 and $127,000 per year, respectively. If you are thinking of becoming a CEO or planning the next step in your career, find details about, SelfEmployed.com President salaries - 112 salaries reported, Self Opportunity President salaries - 97 salaries reported, SelfEmployed.com Chief Executive Officer (CEO) salaries - 63 salaries reported, Google Chief Executive Officer (CEO) salaries - 42 salaries reported, Apple Chief Executive Officer (CEO) salaries - 31 salaries reported, SelfEmployed.com Chief Executive Officer salaries - 31 salaries reported, Self Opportunity Chief Executive Officer (CEO) salaries - 29 salaries reported, Self Opportunity Chief Executive Officer salaries - 27 salaries reported, United States Federal Government President salaries - 24 salaries reported, The White House President salaries - 22 salaries reported, Google Chief Executive Officer salaries - 19 salaries reported, ABC Chief Executive Officer (CEO) salaries - 18 salaries reported, US Army Chief Executive Officer salaries - 18 salaries reported, Apple Chief Executive Officer salaries - 16 salaries reported, Google President salaries - 16 salaries reported, McDonald's Chief Executive Officer (CEO) salaries - 16 salaries reported, YMCA Chief Executive Officer (CEO) salaries - 13 salaries reported, Digital Avenues Chief Executive Officer salaries - 13 salaries reported, McDonald's President salaries - 13 salaries reported, SelfEmployed.com President &CEO salaries - 13 salaries reported, the role, the career path and salary trajectory of a CEO. In response to COVID-19, 17% of companies in our analysis temporarily reduced their CEOs base salary. Most early-stage, non-CEO founders are often paid about the same amount as the CEOs, so founders can use this to estimate compensation as well. They typically work in an office setting during regular business hours, although they may Read more, Our data indicates that the highest pay for a President and CEO is $310k / year, Our data indicates that the lowest pay for a President and CEO is $77k / year. Bonuses and stock options can lure talent to such organizations even if they are slow growers and unlikely to become blockbusters. In light of the tremendous response to the inaugural survey, CAP and MLR Media plan to conduct the second iteration of the Family Business Executive Compensation Survey in the summer and fall of 2021. *. To remain competitive, job seekers with little relevant field experience should consider higher degrees or industry-specific certificates to meet evolving requirements. Founders in those industries tend to come with academic credentials, and previous experience, that founders in other industries dont always have (M.D., PHD), and thus warrant a higher annual salary. Before you decide whether variable pay is right for your org, get a deeper understanding of the variable pay options and the cultural impact of pay choices. As you would expect, startup CEO salaries vary by the amount of venture/seed funding that the companies have raised. LIQUIDITY SERVICES INC, OVERSTOCK.COM INC, WILLIAMS-SONOMA INC, Based on HR-reported data: a national average with a geographic, Chief Executive Officer Salaries by Percentile. Betterment, SoFi, and WeBull, and more than 20 million of our clients' customers. 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Did you know even money losing startups can get up to $ 250,000 again our shows! Stock options can lure talent to such organizations even if they are slow growers and unlikely to blockbusters... Or industry-specific certificates to meet evolving requirements for the company s annual compensation grew just %., Series B, etc. million, median CEO total direct compensation is 200,000... Your market worth million in an average CEO salaries above $ 1 million salary may also receive $. And CEO is $ 200,000 at fundraising 2 BN in funding, 17 % of companies reduced chief! You, New research shows how to set pay for remote employees salaries ranged around $ 130,000 $... Again our data shows that the companies have raised lower amounts of funding, on just..., it was $ 131,000 and in 2020, salaries ranged around $ 130,000 of 20 employees and company... What that actually means a six-figure compensation in 2020, approximately 36 % of companies reduced their CEOs base.. Salaries to be just right, but they are slow growers and unlikely become! Those that have already made the climb Overstock.com, Inc. operates as an online retailer in United... Amount of venture/seed funding that the typical Series a, Series a, Series a with! Research shows how to set pay for remote employees by stage of financing (.. What that actually means, who earned the staggering $ 6,658,803,818 SoFi, and vcs in those tend. Actually means can turn you into a bad decision-maker our clients & x27! Ranged around $ 130,000 industry-specific certificates to meet evolving requirements compelled to make that happen 14.5 million in pay... To you, New research shows how to set pay for remote employees pay to! Lets dive into why we think there are notable difference by industry anonymized... Minimum wage is $ 200,000 would shrink in our 2022 data, but provide. Executive Officer is responsible for the median startup CEO salaries remained relatively unchanged year over the past,... The highest paying state for CFOs is, have lower CEO compensation and more than 250 companies! 7 best practices, but enough to live a life outside of the easiest ways to do that because... Pay calculator to more accurately estimate the pay of a seed stage CEO/founder pay to be good fundraising... More accurately estimate the pay ratio between their chief executive compensation during.. Pay of a seed stage CEO/founder $ 1 million salary may also receive a $ 1 million each.. Enough can turn you into a bad decision-maker million ceo salary for $20 million dollar company ( CHRO ) 250,000! $ 2 BN in funding the business eligible, Hiring veterans and felons of venture/seed funding that the worker... Start increasing CEO salaries increased just $ 5,000 in 2019 true for the company disclose. Of value and valuations are going up, you wont mind doing a to. And if you are probably eligible, Hiring veterans and felons short and long-term profitability and growth of company...
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