How much do startup CEOS pay themselves?
Table of Contents
How much do startup CEOS pay themselves?
Last year, we analyzed data from 125 startups to find that the average 2018 salary for a startup CEO was $130,000. This year, we expanded the data to over 200 of our seed and venture-backed clients and found that in 2019, CEO salaries rose to an average of $142,000 annually, nearly a 10\% increase.
How much equity does a startup CEO get?
Previously Brad Feld has argued that a founder CEO will be in the 5-20\% range, a founder CTO in the 2-10\% range, other co-founders between 3-7\% and non-founder early employees between 0.5-5\%. Market value for equity is dynamic though and the necessary points to attract an individual employee can vary.
How much do founders pay themselves after funding?
Cutting the data specifically for companies that are seed funded, our data shows that CEO founders of startups that have raised seed financing pay themselves, on average, $119,000.
How much should a founder pay themselves?
Career research company 80,000 Hours estimates that founders going through the Y Combinator accelerator program pay themselves about $50,000. If they go on to raise more money, that salary can double. If the startup flops, $50,000 could be the highest salary a founder makes.
What is the average salary of a startup CEO?
A startup CEO salary ranges. A lot. We’ve seen a wide range of CEO salaries at venture-backed companies, from as low as $35k annually to as much as $325k (plus bonus). Raise capital faster with Crunchbase Pro – try it free.
Why do companies pay their CEOs so much?
That’s because dividends are double taxed, whereas salaries are taxed only once. So, a company that is making $10M pure profit that is not in expansion mode might pay $1 million or more to its CEO.
What is the average CEO salary at venture-backed companies?
We’ve seen a wide range of CEO salaries at venture-backed companies, from as low as $35k annually to as much as $325k (plus bonus).
How does a CEO salary proposal get past the board?
Any CEO salary has to get past the Board of Directors, typically disinterested members of the Board. Of course the CEO makes the proposal, and cajoles the Board, but one of their duties is to serve as a check and supervise the CEO.