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How much should you pay an executive in a startup company?

May 1, 2009

CompStudy publishes an annual report of equity and cash compensation that provides compensation data on top management positions and Boards of Directors at private companies in technology and life sciences.  CompStudy covers more than 25,000 executives at 5,000 companies and is the largest study of its kind.

Data is analyzed by: founder/non-founder status, company revenue and headcount, geography, business segment, and number of financing rounds raised. Additional detail is provided on compensation for the Board of Directors, general organizational changes over time and other compensation trends.

The survey consists of a Web-based questionnaire, which can be filled out by a single member of a company’s executive team and takes approximately 45-60 minutes to complete.

CEOs or CFOs of startups in the US, China, India, Israel, or the UK in the technology or life science industry should consider taking the survey.   Participants who complete the survey will receive the full results at no cost. 

The 2008 results are available on Altgate and are also embedded below.

For example, below are the 2008 results for average equity granted at time of hire in IT companies:

  • CEO 5.40%
  • President/COO 2.58%
  • CFO 1.01%
  • Head of Technology/CTO 1.19%
  • Head of Engineering 1.32%
  • Head of Sales 1.20%
  • Head of Marketing 0.91%
  • Head of Business Development 1.23%
  • Head of Human Resources 0.24%
  • Head of Professional Services 0.60%

2008 CompStudy Report in Technology

Publish at Scribd or explore others: Law & Government Business & Law startup equity

2008 CompStudy Report in Life Sciences

Publish at Scribd or explore others: Law & Government Business & Law startup equity

Written by Yokum · Filed Under Stock options 

Comments

  • Runet_startup_founder
    Yokum, what have you seen as an appropriate range for advisors to a pre-Series A startup? I would like the advisor in question, who has considerable interactive marketing expertise, to commit 1 hour a week for 1 year (so 52 hours total) to provide strategic marketing advice, make introductions to key people, etc. and suggested an equity grant (subject to vesting over that year) of 0.25%, which the advisor thought was too low. Thanks in advance for your thoughts.
  • @Runet - 0.10% to 1.00% seems like a fair range. 52 hours/year seems like a lot of time. I think 0.25% seems like it is on the low end for that much of a time commitment.
  • SHELL123
    What should a startup company offer me in stock if salary is 1/3 of my market value,10% commission per deal ..They are offering 1% stock vesting in 4 years in 48 installments..I have to head and execute all sales research job in an asian country market.Please suggest.
  • @Shell 123 - I'm a lawyer not a comp consultant. It's hard to tell what is appropriate without more facts, such as stage of company, your title, background, etc.
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