Christian and Timbers, the first technology-focused executive search firm, today released its report titled Analysis of C-Suite Compensation Trends at Private-Equity Backed Tech Companies, part of its Executive Pay in Focus series. This analysis is based on proprietary compensation data from Q3 2024, encompassing over 100 PE-backed companies and more than 400 executives. The data includes information on base salaries, bonuses, and exit-based payouts.
Key Findings Include:
- 2.1% Increase in Compensation: Overall compensation for executive leaders in PE-backed companies has risen by 2.1%.
- Higher Equity Stakes: Companies nearing an exit show a trend towards offering higher equity stakes, particularly among tech firms in the mid- and upper-middle market.
- Shift Toward Internal Recruiting: The study highlights a significant shift toward minimizing external recruiting costs, with many companies opting to enhance their internal recruiting capabilities.
- Gender Representation: Women occupy significantly fewer leadership roles, making up only 21.6% of C-suite positions, including 4.2% in CEO roles. The highest representation is among women CMOs at 32% and women Chief People Officers at 76%.
For PE firms and boards of PE-backed tech companies, this report serves as a valuable benchmark for developing competitive compensation offers and plans aimed at attracting and retaining executive talent. Download the full report at Christian & Timbers.
Jeff Christian, CEO of Christian & Timbers, commented, “This year’s findings highlight how C-suite compensation is adapting amid economic fluctuations. We’ve observed increases in both cash and equity compensation, with cash increases slightly lagging behind equity gains, indicative of a market that values long-term investment in leadership.”
Insights into CEO and CFO Compensation: CEO compensation varies significantly by company size. In the lower-middle market, CEOs typically receive base salaries ranging from $275,000 to $400,000, with potential equity-based exit payouts between $2M and $5M. In upper-middle market companies, CEOs command base salaries from $540,000 to $1,000,000, along with bonuses ranging from 50-120%, reflecting their pivotal role in driving growth and achieving strategic objectives.
CFOs in smaller lower-middle market firms often see base salaries from $185,000 to $350,000, with equity stakes leading to potential payouts of up to $2.2M. In larger middle-upper market companies, CFOs manage complex financial strategies, with salaries reaching up to $660,000 and bonuses between 35-70%, underscoring their critical role in growth and operational demands.
This detailed report is available at Christian & Timbers.
About Christian & Timbers: Founded over four decades ago, Christian and Timbers is the first technology-focused executive search firm. The firm has significantly shaped the leadership dynamics within the tech industry, completing over 1,000 CEO assignments.
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