Salary at Venture-Backed Companies
perceptive.ly
Salary at Venture-Backed Companies
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Re: Salary at Venture-Backed Companies
#2Would love to hear the HN community's views on this taboo topic!
Re: Salary at Venture-Backed Companies
#3> If you offer too little compensation, you may not attract the talent that you need to be successful. But if you offer too much compensation, management and employees may begin to feel fat and happy and lose the motivation to maximize long-term value for shareholders.
> Salary is a measure of how much value one is adding to a company, and that information should not be a secret.
> If companies are consistently paying management teams 30% away from these averages in either direction, there is likely a problem at the company.
This runs the gamut from superstition (paying people more may make them less 'hungry') to untrue as a matter of fact (salary is an equilibrium of supply and demand, not a measure of value added), to playing to the middle ground fallacy (you should pay upper management within this range dictated by an average).
Re: Salary at Venture-Backed Companies
#4If we're going to have this discussion and focus on the management team, then I think we need to say how much money the company has raised. My thinking about salary for myself and co-founder is definitely funding specific.
Re: Salary at Venture-Backed Companies
#5That VP of Sales number looks low. The article does say "salary," so it may technically be correct, but I'm sure total cash comp (not including options) is higher.
Re: Salary at Venture-Backed Companies
#6If we're going to have this discussion and focus on the management team, then I think we need to say how much money the company has raised. My thinking about salary for myself and co-founder is definitely funding specific.
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Re: Salary at Venture-Backed Companies
#7He referenced "growth phase" which presumably means after having raised a venture round in the tens of millions or higher.
Certainly no one should be paying themselves this much after a $2MM series A.
Re: Salary at Venture-Backed Companies
#8I really wonder what 'average' means in this context since the average venture backed startup is a total failure.
I imagine there's also a huge disparity between the salaries of executives at companies across the seed->A round->B round->...->IPO spectrum as well.
Re: Salary at Venture-Backed Companies
#9Nick, since you're advocating transparency, I'd be curious to know the salaries paid by venture capital companies, such as North Atlantic Capital. For instance, what does an associate, managing director, or marketing director make?
Re: Salary at Venture-Backed Companies
#10I find it interesting that the lowest paid person is the CTO. (Director of Sales will make more because of bonuses).