In this week’s PC data drop, we’re using data from the Thelander Platform looking at how median total cash, founder and non-founder equity compensation for CEOs of private tech companies shifts based on revenue. Generally speaking, the more revenue a company generates, the higher the CEOs median total cash compensation. As far as total founder equity goes, the typical dilution still occurs.
Total Cash Rises With Revenue
- Private tech companies with no revenue pay their CEOs a median of $297,400 in total cash.
- That figure climbs to $430,000 once companies reach $50 million or more in revenue—though the path isn’t perfectly linear, with the earliest revenue band dipping before the upward climb resumes.
Founder Equity Dilutes as Companies Scale
The equity story runs in the opposite direction.
- Total founder equity declines steadily as revenue grows—from 27.50% at companies with no revenue down to 10.50% at those generating $50 million or more.
- This is the typical dilution founders experience as they raise capital and build out their teams over time.
Non-Founder Equity Holds Steady
- Non-founder equity, by contrast, stays relatively flat—hovering around 5.00% across most revenue bands before peaking at 6.61% for companies at $50 million or more in revenue.
- Even as founders give up equity, the equity allocated to non-founders remains consistent as a company scales.
What This Means for Compensation Planning
Revenue is a meaningful benchmark for CEO compensation, but it’s only one variable. Cash rises, founder equity dilutes, and non-founder equity holds, each on its own trajectory. Understanding where your company falls against real market data is the first step to building a competitive, defensible compensation structure.
Find out how your company’s current compensation stacks up to market by participating in the no-cost Thelander Private Company Compensation Survey today. You’ll receive free access to real-time compensation data for every job title you input. The more you give, the more you get.
Interested to see how CEO compensation by revenue compares to total financing? Stay tuned for what’s coming next.