In 2022, there has been an increment of start-up CEO salaries by 2.7 per cent. Therefore, globally, the average salary of start-up CEOs has reached $150,000 per year.
As per a report by Kruze Consulting, which is a startup accounting company, the compensation for CEOs is the maximum in biotech and pharmaceutical companies, with CEOs of seed-funded firms earning as much as $161,000 per annum.
The median salary went up to $140,000.
The study examined the data from more than 250 startups backed by seed funding and venture capitalists.
When it comes to very young companies that have managed to raise funds to the tune of $10 million or more, the CEOs were paid $199,000.
As per the report, the salaries of start-up CEOs vary according to the amount of seed funding that the companies manage to raise.
Companies that managed to raise more than $5 million had their CEOs’ earning go up by up to 7.3 per cent while the startups that managed to raise over $10 million in funding had CEOs earning increase by about 13 per cent.
Founder CEOs of startups that raised less than $2 million earned $106,000 on average. The CEOs of startups with limited access to funding earned less, by about 7 per cent in comparison to 2021.
Clearly, startups that bag more funds are in a better position to pay their CEOs. Also, CEOs with increased salaries are the ones who are better at raising funds.