The average startup CEO salary increased 2.7% in 2022 to reach $ 150,000 per year globally from last year, while the median has increased to $ 140,000, according to a new report.
According to startup accounting firm Kruze Consulting, in 2022, CEOs of early stage companies who raised over $ 10 million in funding were paid just $ 199,000.
“Founding CEOs of companies that raised less than $ 2 million were paid an average of $ 106,000, a difference of more than $ 90,000,” the report said.
Startup CEO salaries vary based on the amount of venture / seed funding companies have raised.
The auditors looked at data from more than 250 seed and VC-backed startups.
It found that the average represents a 7.9% increase in pay over 2020, when CEO salaries fell due to the COVID-19 pandemic.
Companies that raised over $ 5 million and over $ 10 million in funding saw their CEO’s salary increase by 7.5% and 13%, respectively.
“However, startups with more limited funding have seen their CEOs earn less, by around 7%, compared to 2021,” the report said.
The report found three main factors for this behavior.
“First, and more obviously, companies with more funding are better able to pay their CEOs. Second, the increase in CEO salaries recognizes that these CEOs are more effective at raising funds, just as it increases. compensation for CEOs in mature companies that generate higher profits, “said Healy Jones, VP of Financial Planning & Analysis for Kruze.
“Ultimately, startup culture can generate pressure to not accept salaries,” Jones added.
Biotech and pharmaceutical companies tend to have the highest CEO compensation, with Seed-funded companies paying their CEOs nearly $ 161,000.
Healthcare companies had a lower salary per Founder / CEO.
“We realized this is due to the rise of D2C healthcare companies, which tend to look more like SaaS companies and less like a healthcare company with a CEO who has an advanced degree,” the report states.
During COVID, the startup CEO’s median salary dropped 2% to $ 139,000, but returned to $ 146,000 in early 2021.
(With IANS inputs)
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Published on: Tuesday 10 May 2022, 19:17 IST