Thelander PC Digest: June 2022

CEO Compensation at Private Companies: What the Data Shows

Welcome to the first Thelander Digest, our monthly newsletter where we explore helpful compensation insights for private companies. Each month we’ll bring you an exclusive look at different areas within the compensation landscape. First up, CEO Compensation. At J. Thelander Consulting, we’ve been collecting CEO compensation data directly from private companies for nearly 30 years. Here’s what the data shows.

CEO Compensation at Private Companies: Experience Matters

• First time CEOs are being replaced with 2nd and 3rd time CEOs as companies mature.
• Experience makes a difference in building companies and raising money, since the majority of late-stage companies are led by multiple-time CEOs.

In summary:

• 2nd and 3rd time CEOs make more than 1st time CEOs across all levels of financing.
• Median total cash by CEO experience:
  • 1st-time CEO: $270,000
  • 2nd-time CEO: $314,000
  • 3rd-time CEO: $322,500

That’s a 16–19% premium for a CEO who has done it before. Experience brings pattern recognition boards are willing to pay for — how to structure a fundraise, when to scale, how to manage through a down round.

Why Financing Stage Also Matters

Funding stage is the other key variable. Pay scales significantly with capital raised — a seed-stage CEO and a Series D CEO are operating in different compensation environments. This is why broad market salary surveys often mislead. Thelander data segments by financing stage so you’re comparing apples to apples.

Want to see how your CEO compensation stacks up? Participate in the Thelander Private Company Compensation Survey today to access real-time comp data for your entire organization.