Newsletter – IF Edition

This month’s Thelander Digest dives into severance and change in control – which affects private company executives and key employees. It’s important to have a plan in place even if there’s no merger or acquisition on the horizon. And, to create that plan, you need access to relevant, real-time data specific to the global private capital market.  Below you’ll find an exclusive preview of data from the Thelander M&A with Change of Control & Severance Survey, which closes August 8th. Participate today to secure your complimentary overview report.  The Importance of Severance Plans Two AI startups, along with tech giant Google, made headlines

The federal government and big tech companies like Google, Amazon and Apple have issued return-to-office mandates for many employees, either on a full-time or hybrid (two or three days in the office) basis. Surprisingly, many privately held companies across life sciences and tech remain remote or hybrid, according to our data at J.Thelander Consulting. This is an important issue to explore; many top employees prefer to work remotely or have flexibility with their schedules. For the past three years, Thelander has surveyed private companies on their remote work policies. So, what are the key takeaways for 2025?  One-in-5 Companies Lack

You might think the more a private company continues to raise capital, the more they pay their team. After all, more money could mean bigger paychecks, right?  That’s not always the case for every position. Based on data and insights captured from our newest compensation planning tool – we analyze how total cash and equity compensation changes for two key roles – VP of Operations and Director Marketing –  as companies raise more capital. Let’s dig in.  VP of Operations: Cash Holds Steady ased on the chart above, Thelander data shows that: Companies that have raised $50 to $69.9 million pay nearly $30,000 less in

Recent pharmaceutical advances have placed a significant spotlight on biotech and a race to attract top talent in the field. But you might be surprised to learn that, in the past four years, medtech executive salaries and equity have surpassed those in biotech – at least for companies that have raised less than $30 million in financing. The demand for leaders in medtech, as well as the broad market applications and profitability of medical devices, powers the growth of medtech companies at all stages. Meanwhile, an aging population plus technological advances, including AI, drive expansion and growth in both sectors.

This month, we’re excited to release our updated analysis of technical staff-level pay premiums. In the current tech landscape, certain positions command a premium due to high demand for specialized skills, especially amidst the AI boom. Understanding these elevated compensation rates is crucial to stay competitive. Utilize the Thelander platform to benchmark these sought-after positions and explore our Engineering pay plans to navigate these trends effectively. Now let’s dive into the data. Chart 1 & 2 look at what technical jobs you pay a premium for. We see the following: Engineer – Lead/Principal Software Engineers receive the highest pay premium. Other in-demand roles that follow

Ensuring the right equity distribution in privately held companies is key. Access to real-time, quality market data helps accurately benchmark and determine competitive equity allocations for your team in relation to cash compensation. Equity, typically vested over four years with a one year cliff, is THE long-term incentive exclusive to private companies. It not only drives potential wealth creation but also aligns the team with investor interests, crucial for sustained success. As your company evolves, particularly with ongoing capital raises, the balance between cash and equity compensation will change. Understanding these dynamics is essential. Jenn Fang, Partner at Wilson Sonsini, elaborates

This month, we delve into the fundamentals of establishing a compensation philosophy and the intricacies of working effectively with your compensation committee. Creating or refining a compensation philosophy is crucial for the sustained success of any private company. This philosophy forms the foundation of your pay practices, providing a clear ‘why’ that guides your executives and HR team in making informed compensation decisions. A compensation committee is established once the board of directors or independent advisors is in place. This committee, comprising investors or independent members, plays a crucial role in shaping the compensation philosophy and structure for the company.

As 2024 comes to a close, what better topic to dive into than salary increases and bonuses? Drawing on the findings from the recently published Thelander Private Company Year-End Merit Increase, Option Pool & Bonus Report (available on the Thelander Platform) we’ll explore who received a salary increase for 2025 at private companies, what the percentage was, and the driving factors behind them. Our analysis spans various industries and levels of company financing to discern which factors significantly influence these increases. Let’s start with staff-level employees.  The likelihood of a staff-level employee receiving a salary increase went up as the total

As we near the end of the year and your company plans for 2025, we’re addressing questions about salary increases and compensation trends to help you level up your compensation game. Salary increases can serve multiple functions: Ultimately, these measures aim to minimize turnover, retain key employees, and ensure competitiveness in the market. Determining the size of a salary increase largely depends on the starting point for each position— specifically, how competitive the current salary is, the value of the role to your organization, and the individual’s level of experience and contribution. If the total base pay aligns with the 75th percentile or

Welcome to this special edition of the Private Company Digest. This month, we’re joined by Scalar, a leader in business valuations, renowned for their extensive experience across over 25,000 valuations for diverse purposes including 409A, executive compensation, and more. Scalar’s insights will guide us through the intricacies of 409A valuations, a critical element for private companies managing equity distributions and compensation structures. What is a 409A valuation?A 409A valuation determines the fair market value of a private company’s stock. It’s essential for setting the strike price of employee stock options. The name “409A” comes from the section of the U.S. tax

While public company CEO compensation is widely reported, identifying what types of private companies are paying top dollar for their CEOs is not as clear-cut. In this edition, we explore several factors that influence CEO pay in the private sector. So, which private companies are paying the most for their CEOs? Let’s dive into our data. Chart 1 shows the highest paid CEOs by industry. We see the following: Overall, biotech CEOs command the highest salaries. The top elite 1% earners are equally split between biotech and tech sectors. Chart 2 shows the highest paid CEOs by total financing. We see the following:

We’re excited to continue our “Comp Talks for Private Companies” virtual series with Cooley. With two sessions behind us, we’ve delved into equity awards and compensation strategies amid market fluctuations, including refresh grants and option repricing. Our upcoming session on September 18th will explore how to level up your compensation strategies. Sign up for it here so you don’t miss out. August’s Digest gives you an exclusive preview of the findings from our Private Company M&A and Change of Control & Severance Survey. Let’s dive into the data: Chart 1 shows which industries have been involved in buying or selling a company in an

Welcome back to the Thelander Digest for July. Last year, we explored global compensation data for private companies, and this year, we’ve significantly deepened our scope. In collaboration with the BioIndustry Association (BIA) in London, we have launched the Private Company UK Compensation Initiative, enhancing our offerings with real-time compensation data specifically tailored for the UK market. So, what does compensation look like for life science executives in the UK vs the US at private companies? The movement of talent is notable, with many UK-based private companies employing US-based CEOs, CFOs, and other executives. Additionally, life science companies in hubs like Boston

Welcome back to the Thelander Private Company Digest for June. Last month, we released a new filter on our platform allowing users to customize their search by most recent series raised. In honor the new feature, we decided to analyze how customizing compensation by series versus total amount of financing impacts compensation for the most senior leaders, specifically CEOs and CFOs. Let’s dig in.  We have previously shown in the Thelander Digest that the best way to customize compensation data tables is by the total amount of financing raised to date. As PitchBook said, “The origins of the traditional C labels – seed,

It’s commencement season, which means many college graduates will soon be on the hunt for their first career jobs – with many looking to the private capital markets to jumpstart their careers. This could prove challenging in this economy, where landing a well-paid job is extremely competitive, coupled with fewer entry-level job openings. However, for companies competing for talent, it’s important to know how much money you can potentially pay for a particular role and what levers you have to negotiate in extending an offer. For most startups, this includes equity, which is a percentage of a company’s shares, not a

One of the most frequently asked questions we get from our survey participants and clients is about how to compensate non-investor/independent board members. Non-investor board members contribute to private company boards because they typically have industry knowledge and valuable contacts that can help the company succeed. By appointing an independent member, the board can also expand past founders and investors, and have a neutral party to help make decisions on behalf of the company.  So, how do non-investor board members get compensated?  The four potential levers are: The majority of private companies compensate their non-investor board members with one-time equity

Welcome back to the Thelander Digest. Since March is Women’s History Month, we dug into our private company dataset to look at how the representation of female C-Suite executives at private companies has changed YoY and what progress has been made in closing the gender pay gap between men and women at the highest levels. Here’s what we found: At the median, female CEOs, CFOs, CTOs and Chief Scientific Officers, earn the same total cash or more as their male counterparts, representing significant jumps from 2020.  When looking at founder and non-founder CEOs of companies with less than $15 Million in total financing, female CEOs