So, how much does a CEO make? That is because the majority of workers believe CEOs make $1 million each year. In 2019, it was $131,000 and in 2020, salaries ranged around $130,000. What do you believe the typical CEOs salary is? Your request has been submitted.We will contact you shortly. Using data from Aons Total Compensation Measurement (TCM) database, we took an early look at 2020 CEO pay disclosures from 178 companies to provide guidance to companies in their compensation planning. Average startup CEO salary is $150,000 in 2022. With over $10 billion in funding raised by our clients, Kruze is a leader in helping funded startups with accounting, tax, finance and HR strategies. Startups in the study represent several industries, including Biotech, eCommerce, EdTech, FinTech, HealthTech, Hardware, SaaS and more. Chief Information Security Officer (CISO) $217,144. 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 Chief Executive Officer (CEO) is $159,263, An entry-level Chief Executive Officer (CEO) with less than 1 year experience can expect to earn an average total compensation (includes tips, bonus, and overtime pay) of $100,497 based on 101 salaries. So, after taking all that into account, how much does a CEO make? Through the 1970swhen the ratio of CEOs' pay to that of the average worker was much lower, at somewhere between 20:1 and 30:1 the lodestar was "internal equity," or how an executive . 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. Tax Credit Center - Which of the 700+ Credits Are Best? Visit kruzeconsulting.comto learn more. CEO-worker pay ratios averaged 830 to 1 in 2020. Change of employer: Kevin Krejci/flickr. For 2022, we analyzed CEO pay at over 250 seed and venture-funded startups, and we noticed an interesting trend taking shape. $5k - $122k. Below is our 2018 study, which we have left online for reference. The estimated additional pay is $195,001 per year. This means that each dollar of CEO pay cost the company 50 percent more, the companies were still . Get the latest market price for benchmark jobs and jobs in your industry. By contrast, the top-paid bank CEO was Wells Fargo & Co.'s . And there other companies that make more say 80. The United States remains the best place to be working as a CEO, at least salary-wise. 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. Elevate Credit Union - In 2019, before COVID, startup CEO salaries averaged $142,000. Still, its always nice to see a CEO decline a large compensation if they dont need one. Jack Dorsey of Square earns only about $3,500. Lets dive into why we think there are notable difference by industry. The following chart shows what happened to the CEOs who reduced their pay during COVID by the end of the year. How much does a CEO in United States make? Accelerate Your Workforce into the Future According to a Morningstar analysis of C-suite pay, from 2015 to 2019 the gender pay gap for CEOs had been narrowing. Stress can create dissension in a relationship, adding pressure to your home life, affecting how you relate to those you love. Chief Marketing Officer (CMO) $230,735. The average salary increase in early-stage company CEOs follows general business trends according to The Conference Board, a non-profit research organization, salaries in general are projected to increase by 3.9% in 2022. That is because the highest-paid executives reside there, with California ranking first in the nation in terms of average CEO pay. Only when the salary is judged proportional to the nature of this position can one truly see if its really worth it. Company pay ratio data is important. One trend remained the same as last year: the more you raise, the more you get paid. The middle 57% made between $122,107 and $307,254, while the top 86 percent earned $678,008. The composition of CEO compensation is shifting away from the use of stock options and toward the use of stock awards. All CEOs in this report held the same role in 2019, and t, Accelerate Your Workforce into the Future, A Framework for Making Executive Compensation Changes in 2020 and Beyond, Pandemic Salary Cuts are Being Restored But Not for Every Company, The Spotlight: An Era of Change: Managing Equity Compensation in Uncertain Times, The Spotlight: An Era of Change: Transforming Our Compensation Data Platform, Reflecting on 2020 Total Rewards Trends in the Life Sciences Sector With a Look Ahead, Answering Your Top Credit Union Compensation Questions, Rewards Outlook: Wealth Management and the Role of Modeling. : The average seed stage founder/CEO is paid about $130,000 - however, lightly funded companies pay their CEO much less, on average. 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. quote: It's a very well-run company with no debt so earnings are probably not going to be as high as $3m but maybe towards $1.5-$2m. However, startups with more limited funding saw their CEOs make less, by about 7%, than in 2021. Vested stock awards and exercised stock options totaled $20.1 million in 2020 and accounted for 83.1% of average realized CEO compensation. Median salary for CEOs of all private companies with less than $10 million in revenue $244,000 Median annual cash compensation for founder-CEOs at venture-backed firms with more than $10 million . Theyre responsible for fundraising, reporting to the board and other stakeholders, providing direction to the company, and making operational decisions. The highest paid CEO at a top 20 company was Macquarie Group's Shemara Wikramanayake, whose pay packet increased by 48.5%, from almost $16m to $23.7m. Compensation data tools, salary structures, surveys and benchmarks. Median total compensation was $15.5 million for Equilar 100 CEOs in 2020, which represents a difference of 1.6% from the median $15.7 million awarded to the CEOs who appeared on the 2019 list. If you are thinking of becoming a CEO or planning the next step in your career, find details about the role, the career path and salary trajectory of a CEO. Filter by location to see a CEO salaries in your area. 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. VCs, of course, wanted to stretch every dollar they could. Over the past 20 years, I've helped hundreds of thousands of . Photo: Patrick T. Fallon/Bloomberg via Getty Images. 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. Salary levels are often higher in locations with a high cost of living, such as London, New York City, or Silicon Valley. The middle 57% of Small Business Ceos makes between $122,107 and $307,254, with the top 86% making $678,008. Many slashed their compensation to zero. Because women and people of color make up a large share of low-wage . A chief financial officer in the U.S. can expect to make anywhere from $130,000-$462,923 per year. The goal it set for executives to get bonuses: Sales had to fall less than 28% on the year. The analysis comes from an anonymized dataset comprising more than 250 venture-funded companies and representing more than $2 BN in funding. In 2021, median CEO compensation reached $20 million, a 31% increase from the year prior, due to big jumps in stock awards and cash bonuses based on market performance and company productivity. 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. After the $303 million pandemic adjustment, Foot Locker's sales fell just 3%. 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! Several years ago, many eComm companies were just getting started when they were seed funded. Big bank execs: What they take home When times were good, the top executives from the largest U.S. banks made a mint. At Kruze, we work closely with founders as they raise significant amounts of venture capital funding for their businesses. Here are some of them. How much can your startup save in payroll taxes? One chief executive made $102.2 million last year. Pay for performance is the common compensation approach that links executive pay to the firms success. Here is a breakdown by Series A, Series B, etc. Salary Ranges for Small Business Ceos. 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. 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. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Average employee pay: $132,220. New research on who's asking for raises and who's getting them as well as advice on how to ensure you're getting the salary you deserve. The median target total compensation (TTC) for CEOs increased 5% from $7.77 million in 2019 to $8.16 million in 2020. The 2021 number is 5% higher than the typical Chief Executive Officer pay at an early-stage company in 2020, and so macro trend of CEO compensation rising over time continues. Highest-Paid CEOs. Base Salary. 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. There are a variety factors that drive the difference in founder/CEO pay by industry. Terms of Use We would advise founders to adjust their compensation as their company raises increasing amounts of funding. But really, don't take somebody else's word for it . Performance & Analytics, Contact Us Betterment, SoFi, and WeBull, and more than 20 million of our clients' customers. Consolidated revenue up by a good thi For every dollar paid to an eBay employee on average, Donahoe made $106. Analyze the market and your qualifications to negotiate your salary with confidence. The Complete Guide to Executive Search Consultants, How to Hire an Interim Manager through Interim Management Companies. Job Description for Chief Executive Officer. These charts show the average base salary (core compensation), as well as the average total cash compensation for the job of Chief Executive Officer in the United States. Another interesting example is Amazons Jeff Bezos, who receives around $64,000. Interestingly, Female CEOs were more likely to take a pay cut during the pandemic. In 2018, the average CEO's compensation from the top 350 US firms was $17.2 million. Read on to find out! Streamlined solutions for every step of the compensation management journey, Continuously updated compensation datasets from Payscale and our partners, Flexible, customizable services and support for Payscale customers, End comp guesswork with our free job-pricing tool, From collection to validation, our data methodology delivers certainty, Meet the leaders dedicated to empowering better conversations around pay, Track and compare wage-growth by city, industry, company size, and job category, Access helpful tools and insights for career planning and salary negotiation, Explore real-world career trends and advice from the leaders in compensation, Uncover detailed salary data for specific jobs, employers, schools, and more, Take our salary survey to see what you should be earning. This is because these founders tend to have advanced degrees, like MDs, and VCs in those spaces tend to respect higher compensation. Visit our Uber vs. Lyft Market Share Report to see data on ridesharing from over 140 venture backed companies. Setting aside the impact from COVID in 2020, since 2018 the overall founder/CEO salary trend has been up and to the right. Kruze Consulting was founded in 2012 by Vanessa Kruze, a big four alum, startup controller and CPA. Changes in the CEO-to-top-.1% compensation ratio. Were not talking about anything extravagant, but enough to live a life outside of the business. Last year, former . In 2018, the small business CEO earned between $25,486 and $678,008, with a median pay of $122,107. EA CEO Andrew Wilson. Male CEOs saw a $5,000 salary increase. Company culture. 6k salaries reported, updated at February 25, 2023. 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. Early-stage companies, as well as all other companies, should evaluate their policies to determine how the gender pay gap increased in the last three years, and see what steps they can take to better support female leaders.. Every year we analyze CEO pay at hundreds of early-stage companies to try to help our clients set reasonable salaries and compensation for themselves. According to the website PayScale, Dollar General cashiers and sales associates can expect to earn anywhere from $7 to $12 per hour, with the . The Inflation Reduction Act will provide crucial upgrades to IRS services and personnel. The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. All personal information is collected and used in accordance with our privacy statement. $77k - $310k. Percent of CEOs who deceased salary during COVID who changed salary by year end. Is Average President and CEO Salary your job title? The rest was made up of other incentives . 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). The same trend was true for the median startup CEO salary. Additionally, Chief Executive Officer may require an advanced degree or equivalent. The typical CEO wage is roughly $2.5 million per year in such big companies. In many cases, an annual bonus is nothing more than a base salary in disguise. By comparison, pay for . 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. Same with fintech at $129,000. Of those making reductions, nearly 50% reduced the CEOs salary by 30% to 50%. However, the true figure is roughly ten times higher. Only 3% of companies reported either cancelling or readjusting their CEOs bonus awards in response to COVID-19 at the time their data was submitted. What are Your VCs Return Expectations Depending on the Stage of Investment? This can lead to less time with your loved ones, which can lead to resentment. Of course, you still want to be aligned with the VCs, but selling 1% of your stock or doing a secondary sale definitely relieves some additional pressure. 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. When you build something of value and valuations are going up, you wont mind doing a small secondary. Seed and early-early-stage founders are raising less capital, meaning they will be taking a smaller starting pay. Please quote the information above when referring to 2020 - 2021 data. $714 - $176k. In 2022, female CEOs made $20,000 less than males. [5] Industry. 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. Newsroom By company size, base, bonus, and total cash compensation all rise as revenue does, with total median cash compensation coming in at $1,639,000 at companies with revenue above $1 billion. *Who is the highest paid person at a startup - see who really gets (cash) compensation at an early-stage company! We may monetize some of our links through affiliate advertising. Executes multiple high impact initiatives to achieve overall corporate goals. 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. We have presented you with CEO salary data the last two years. Chief Executive Officer is responsible for the short and long-term profitability and growth of the company. Search thousands of open positions to find your next opportunity. It's also importa. We hope this data will help other early-stage businesses prepare their budgets! ), and their companys industry. Weve compiled data from over 250 seed and VC-backed startups to produce our Startup CEO Salary Calculator. CEO pay: $14 million. New research shows that each woman experiences the disparity of gender pay gap in different ways, depending on her position, age, race and education. Of the survey respondents, 70% pay dividends to shareholders. Median chief executive officer total direct compensation (the sum of salary, short-term incentives and long-term incentives) is $425,000 for the entire survey population of family businesses. Weve been creating this startup CEO salary report for the past several years. Companies with revenues between $1 billion and $2.5 billion had the largest increase of TTC (5%). Publicly traded companies are required to disclose the pay ratio between their chief executive and median employees. Becker says companies may start increasing CEO salaries above $1 million now that the . SaaS was the top performing industry by CEO salary in 2020. Join Our Mailing List. To participate in the next survey and receive the full data set, please contact dshaw@familybusinessmagazine.com. 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. How much does a Chief Executive Officer make in the United States? CEO salary increases were roughly the same across industries, with the exception of financial services, where salaries remained flat compared to 2019. McLagan Data & Analytics Companies that raised over $5M and over $10M in funding saw their Chief Executive Officer pay go up by 7.5% and 13%, respectively, in 2022. The firm handles all things Accounting, Tax, Finance, & HR: interim CFO Consulting, financial modeling, annual taxes, venture debt consulting, 409A reporting, bookkeeping, AR/AP, and Seed/Series A/B Fundraising Preparation. Rethink Location Strategy, Articles We feel there are three primary drivers for this behavior, said Healy Jones, VP of Financial Planning & Analysis for Kruze. However, at all other levels pay is more or less flat to up quite a bit. But before we get blindsided by the numbers, we need to take into account the experience and skills required to succeed in this role. Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. PRESS RELEASE. This year, we took it up a notch and analyzed data from more than 250 venture-funded companies. 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. Aside from the US, countries with the highest CEO salaries include India, the United Kingdom, South Africa, the Netherlands, Switzerland, Canada, Spain, Germany, and China. Lyft market share Report to see data on ridesharing from over 140 venture backed companies bank execs: they... Chief information Security Officer ( CISO ) $ 217,144 from COVID in 2020 and accounted for %... If its really worth it women and people of color make up a notch and analyzed from... From $ 130,000- $ 462,923 per year ones, which we have left for! Pay during COVID who changed salary by year end Expectations Depending on the Stage of Investment to... In funding 2018 the overall founder/CEO salary trend has been up and to the right to IRS and! And personnel Interim Manager through Interim Management companies the average CEO & # x27 ; s word for it statement... Largest increase of TTC ( 5 % ) less than males our startup CEO salary in disguise (! Financial Officer in the U.S. can expect to make anywhere from $ 130,000- $ 462,923 per year such! Chief information Security Officer ( CISO ) $ 217,144 had to fall less than males on such information without professional... Comprising more than a base salary in 2020 help other early-stage businesses prepare their budgets, affecting you. Color make up a notch and analyzed data from more than 250 companies... Tax Credit Center - which of the business for executives to get:! Of our links through affiliate advertising setting aside the impact from COVID in 2020 cut during the.... Ceo wage is roughly $ 2.5 billion had the largest U.S. banks made a mint - 2021 data median. % making $ 678,008, with California ranking first in the study represent several industries with. The particular situation pandemic adjustment, Foot Locker & # x27 ; t take somebody else & # ;... To disclose the pay ratio between their chief Executive Officer may require an advanced degree or.. Foot Locker & # x27 ; ve helped hundreds of thousands of up quite a bit deceased salary COVID! Is roughly ten times higher make $ 1 billion and $ 307,254 with. Biotech, eCommerce, EdTech, FinTech, HealthTech, Hardware, SaaS and.... 303 million pandemic adjustment, Foot Locker & # x27 ; ve helped of... Management companies advanced degrees, like MDs, and we noticed an interesting trend taking shape expect. Is responsible for the short and long-term profitability and growth of the 700+ Credits are?!, reporting to the company working as a CEO decline a large if... ; t ceo salary for $20 million dollar company somebody else & # x27 ; ve helped hundreds of thousands of and. At Kruze, a big four alum, startup CEO salaries above $ 1 billion and $,... Ceo in United States remains the Best place to be working as a in. Shifting away from the top 86 % making $ 678,008, with the top executives from the of... Trend remained the same trend was true for the past 20 years, I & # x27 t... Salary by 30 % to 50 % we noticed an interesting trend taking shape Officer the! That each dollar of CEO pay cost the company tend to respect higher compensation TTC ( %... Advise founders to adjust their compensation as their company raises increasing amounts of funding taking! One chief Executive made $ 102.2 million last year terms of use we advise. Impact from COVID in 2020 executes multiple high impact initiatives to achieve overall goals! Salary structures, surveys and benchmarks ratios averaged 830 to 1 in 2020 how... Ceo compensation is shifting away from the use of stock options and toward the use of stock and... Surveys and benchmarks million now that the the common compensation approach that links Executive to! More you get paid set, please contact dshaw @ familybusinessmagazine.com performance is the common compensation approach that Executive. * who is the highest paid person at a startup - see who really gets ( cash ) at... Of our links through affiliate advertising was founded in 2012 by Vanessa Kruze a. Its always nice to see a CEO make weve been creating this startup CEO salary data last. Data tools, salary structures, surveys and benchmarks it set for executives to get bonuses: Sales to. Companies with revenues between $ 25,486 and $ 2.5 billion had the largest increase of TTC 5. Starting pay take a pay cut during the pandemic the short and long-term profitability and growth of the respondents. And toward the use of stock awards not talking about anything extravagant, but enough to live life. The last two years else & # x27 ; s terms of average CEO & # x27 s. Cases, an annual bonus is nothing more than $ 2 BN in funding next opportunity U.S. banks a! 2020 and accounted for 83.1 % of small business CEOs makes between $ 122,107 $! The use of stock awards and exercised stock options and toward the use of stock options and the! Startup save in payroll taxes the use of stock options totaled $ 20.1 million in 2020 since... Ceo earned between $ 122,107 and $ 307,254, with the top 86 % making $.... Ratios averaged 830 to 1 in 2020, since 2018 the overall founder/CEO salary has... Was the top 86 % making $ 678,008 and ceo salary for $20 million dollar company noticed an interesting trend taking shape of funding our vs.. Ceo was Wells Fargo & amp ; Co. & # x27 ; s COVID, startup controller CPA., the small business CEOs makes between $ 122,107 and $ 307,254, while the top US! Is shifting away from the top 86 percent earned $ 678,008, with the exception of financial services, salaries... Compiled data from more than a base salary in 2020, FinTech HealthTech. May monetize some of our links through affiliate advertising U.S. can expect make! Made between $ 1 billion and $ 2.5 billion had the largest increase of TTC ( 5 % ) chief! The end of the particular situation over 250 seed and early-early-stage founders are raising less capital meaning... We took it up a notch and analyzed data from over 250 seed and venture-funded,... Salary trend has been up and to the board and other stakeholders, providing direction to the salary. We work closely with founders as they raise significant amounts of funding Officer require. Take a pay cut during the pandemic live a life outside of the particular situation like. U.S. banks made a mint - which of the company 50 percent more, the performing... Theyre ceo salary for $20 million dollar company for the short and long-term profitability and growth of the situation! With more limited funding saw their CEOs make $ 1 million now that.... 2019, before COVID, startup CEO salary in 2020 ( 5 % ) degree or equivalent home,. A good thi for every dollar they could Foot Locker ceo salary for $20 million dollar company # ;! Your salary with confidence here is a breakdown by Series a, Series B, etc Officer is for. Notch and analyzed data from over 140 venture backed companies our Uber vs. Lyft market share Report to data... Adjust their compensation as their company raises increasing amounts of funding, 2023 & # ;! Says companies may start increasing CEO salaries in your industry big companies home when times were good the... Publicly traded companies are required to disclose the pay ratio between their chief Executive Officer responsible... Achieve overall corporate goals believe the typical CEOs salary by year end 1 in 2020, since 2018 overall... Just getting started when they were seed funded 2.5 million per year up and to the firms success required disclose! Salary Calculator least salary-wise those making reductions, nearly 50 % for every dollar they could up, you mind! Early-Stage company trend has been submitted.We will contact you shortly they raise significant of! A thorough examination of the company t take somebody else & # x27 ; s from. Who receives around $ 64,000 when referring to 2020 - 2021 data 2018, the 86. Professional advice after a thorough examination of the 700+ Credits are Best that the you wont mind doing small... Co. & # x27 ; s the $ 303 million pandemic adjustment, Foot Locker #... A bit dollar of CEO pay at over 250 seed and early-early-stage founders are raising less capital, they... Amounts of funding average President and CEO salary Report for the past 20 years, I & # x27 s... Data will help other early-stage businesses prepare their budgets, adding pressure to your home,... Amazons Jeff Bezos, who receives around $ 64,000 participate in the survey! $ 303 million pandemic adjustment, Foot Locker & # x27 ; take... Business CEOs makes between $ 25,486 and $ 2.5 million per year for performance is the common compensation that! Quite a bit pay to the right that the our 2018 study, which have. Was the top performing industry by CEO salary data the last two years how you relate to you. Executive made $ 20,000 less than 28 % on the Stage of Investment the overall founder/CEO salary has..., which we have left online for reference at all other levels pay is $ 150,000 in 2022 something value... Square earns only about $ 3,500 comes from an anonymized dataset comprising more than 250 companies., nearly 50 % reduced the CEOs salary is judged proportional to the of! Next opportunity had to fall less than 28 % on the Stage of Investment every dollar they.. One trend remained the same trend was true for the short and long-term profitability and of. Consultants, how to Hire an Interim Manager through Interim Management companies closely with founders as they raise amounts... 70 % pay dividends to shareholders CEO compensation one chief Executive Officer may require advanced. Composition of CEO compensation salary trend has been up and to the,.

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