A few weeks ago, we read an a16z newsletter on the “7 hires a hardware startup needs to get right” that outlined the seven functions (besides engineering) that determines whether a “great product ever becomes a great business.” Which include: Manufacturing, Deployments, Supply Chain, Finance, Sales, Policy and Marketing. And while the piece described how to find the right person, and how to know when you’ve found the right person, they didn’t touch on what it takes to compensate those roles. That’s where we come in.
While we’re looking at data for all types of private companies – including hardware and tech – you can access real-time cash and equity data for your company by participating in the no-cost compensation survey today.
Here’s what compensation looks like for roles at various levels in the categories highlighted by a16z.
1. CFO — up to $884,000 total cash
Total cash: $215,000 (25th) – $884,000 (max)
Equity (non-founder): 1.0000% – 7.5000%
2. VP Sales — up to $653,000 total cash
Total cash: $207,000 – $653,000
Equity: 0.6600% – 1.5000%
3. Director Marketing — up to $300,000 total cash
Total cash: $159,000 – $300,000
Equity: 0.0758% – 3.0000%
4. Manufacturing Engineer — up to $195,000 total cash
Total cash: $90,000 (25th) – $195,000 (max)
Equity: 0.0215% – 0.35%
5. Supply Chain Manager — up to $185,000 total cash
Total cash: $91,625 (25th) – $185,000 (max)
Equity: 0.0182% – 0.2000%
The exact mix of cash and equity can depend on how much capital the company has raised, valuation and the type of company, especially for the executive positions. To see the full data tables, including each individual compensation lever and all the percentiles, complete the survey today.
What stands out in the article is where these people come from, and it holds true across a lot of roles, not just the ones we priced. For manufacturing, they make the point that the “domain expertise can be taught, but the process is hard to find.” The same goes for marketing, where they suggest that the best hires come from, “either outside the industry or outside of traditional marketing backgrounds” because “those hires will, by design, have to get creative.” This means that hiring a dynamic team involves looking for talent across a broad range of roles, expertise, and industries. Having the tools to make informed compensation decisions makes attracting and retaining the right talent for your company that much easier. Thelander covers all industries, from tech to life sciences and more than 300 roles from C-Suite to entry-level employees.
In the same way that critical hires build on one another, the same holds true for getting the compensation right. When you make mistakes on cash and/or equity, they compound.