On one side are those needing to make dramatic cuts in spending to extend their business longevity. The shift in salary trends suggests a growing divide in the startup world, with companies falling into one of two categories. Investors have been advising founders to extend runways as much as possible, resulting in declining salaries,” said Healy Jones, Vice President at Kruze Consulting. “Startup CEO salaries are declining as a result of constrained availability of capital to startups. However, it’s not all about budget cutbacks, as the median CEO salary is actually on the rise, defying historical trends. This frugality is being enforced by investors keen to extend the lifelines of the businesses they have put their money behind. In a sign of tightening budget constraints, startups are demonstrating increased caution in their financial outlays, particularly when it comes to executive compensation. This dip in salary, down to an average of $142,000 in 2023 from $150,000 in 2022 and $146,000 in 2021, is largely attributed to the increasingly stringent capital markets and the resulting need to extend cash runways. As per the latest data from Kruze Consulting, a leading financial advisory firm for venture capital-backed startups, the average salary of startup CEOs has returned to its 2019 levels.
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