Startup CEO pay varies widely: salary-survey sites and studies of venture-backed companies put the average somewhere in the low-to-mid six figures, and the range is wide. Pay depends on company stage, funding, location, industry and culture, and CEOs who take more salary usually take less equity.
Early-stage startups often have a tight budget, especially before they’ve raised significant venture capital. Of course, your employees deserve a fair wage for their knowledge and hard work. However, you also don’t want to run out of money before you become a venture-backed company.
One figure, in particular, is crucial to know: the average startup CEO salary. Because CEOs are usually the highest-paid employee, drawing a salary that’s too large can drain your financial resources. On the other hand, startup founders and CEOs deserve adequate compensation, like any other member of the business.
Knowing the average startup CEO salary is crucial to determine proper compensation for your employees. Below, we’ll investigate some of the factors that go into the average annual salary of a startup CEO.
How much does a CEO of a startup make?
Startup executive compensation can be difficult to assess fairly, especially when CEOs are in charge of setting their own salary. You need to strike the right balance during life as a startup founder—not living in the lap of luxury, but also not eating ramen every night.
Some in the startup community believe that CEOs should draw a modest salary, at least for companies in the earlier stages. Entrepreneur and venture capitalist Peter Thiel, for example, argued in a 2008 TechCrunch interview that the best predictor of startup success is a low CEO salary:
“The lower the CEO salary, the more likely [a startup] is to succeed. The CEO’s salary sets a cap for everyone else. If it is set at a high level, you end up burning a whole lot more money.”
Salary data from career websites shows how wide the range is. ZipRecruiter publishes a salary range for the position of “startup CEO,” with the top of the range several times higher than the bottom. The figures change over time, so check the current numbers.
Kruze Consulting’s 2026 payroll data puts the average venture-backed startup CEO salary at $165,000, with a median of $159,000. The average rises from $153,000 at seed to $203,000 at Series A. It’s important to note that the data covers only Kruze’s US-based, venture-backed clients, which tend to pay more than bootstrapped companies.
Below are some of the factors that may influence a startup CEO’s salary:
- Company stage: CEOs at an early-stage startup may have a lower salary than those at a late-stage company. This is especially likely if the early-stage startup is a part-time passion project.
- Funding and cash flow: How does funding impact the salary of startup CEOs? Companies that have raised more money, or that have already started to turn a profit, can afford to pay their CEO more.
- Location: As a general rule, salaries are higher in places with a high cost of living, such as Silicon Valley, New York City, or London. (These areas also tend to be where many tech companies are clustered.) However, remote work can alter this equation. Startup CEOs who telecommute from a cheaper location may be willing to draw a lower salary.
- Industry: Startup CEO salaries may also depend on the company’s industry, which influences how much funding you can raise. For example, tech founders in sectors that attract more funding may be paid more than founders in industries that raise less.
- Company culture: Some startup CEOs may draw a low salary to set an example for the company and establish a culture of lean efficiency. By paying less in salary and more in equity, CEOs can also incentivize themselves and their employees to ensure a successful exit.
What is typical CEO equity in a startup?
Of course, salary is just one part of a startup CEO’s total compensation package. Equity, too, is an important consideration for how much startup CEOs are paid. So how much startup equity do CEOs typically receive?
When determining CEO equity, one important factor is founding status. Is the CEO also a founding member of the startup, or has this person been hired after the company gets off the ground?
Startup financial advisor David Ehrenberg suggested in 2017 that 5 to 10 percent is a fair equity stake for CEOs who join the company later. SaaStr’s analysis points the same way: a founder/CEO typically holds a noticeably larger share at IPO than an outside CEO.
This discrepancy is because startup founders begin by holding most or all of the equity in their company. However, these initial holdings become diluted over time as more employees join the startup and as the company raises venture capital. Founders who serve as CEO thus hold more of a stake than CEOs who were not part of the founding team.
CEO equity and salary are typically inversely proportional to each other. Startup CEOs who draw a larger salary may choose a smaller equity stake to compensate, and vice versa. Additional equity stakes may also be part of the CEO’s compensation—for example, an extra 1 percent in equity for each year as CEO.
Still, there’s no “one size fits all” answer here, and most startups are open to negotiating both salary and equity. CEOs who are considering joining a startup should know how to evaluate a stock option grant and other parts of their compensation package.
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Frequently asked questions
How much equity does a startup CEO get?
Financial advisor David Ehrenberg suggested in 2017 that 5 to 10 percent is fair for a CEO who joins later. SaaStr’s analysis found that a founder/CEO typically holds a larger share at IPO than an outside CEO.
What is the range of startup CEO salaries?
Published figures vary widely, from well under six figures at the low end to several times that at the high end. Kruze Consulting’s 2026 payroll data for venture-backed clients puts the average CEO salary at $165,000 and the median at $159,000. Those companies tend to pay more than bootstrapped ones, and the numbers change over time, so check the current data.
Should a startup CEO take a low salary?
Peter Thiel argues that a lower CEO salary predicts success because it sets a cap for everyone else. Some CEOs also take less salary and more equity to set a lean culture and align incentives toward an exit.
What affects a startup CEO's salary?
Company stage, funding and cash flow, location, industry and company culture. Salaries are generally higher in high cost-of-living areas, though remote work can change that.
