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Not sure it's useful to reason about CEO pay independently of company performance. Google's revenue and profit per-employee are quite high. If your startup is j
by dannypgh 8y ago
Not sure it's useful to reason about CEO pay independently of company performance. Google's revenue and profit per-employee are quite high. If your startup is just bleeding money on hopes and promises, it's probably harder to justify a salary that high. The cut below 6 figures happened in the context of layoffs...
CEOs of very early companies that don't have an established business model and are dependent on investors to stay afloat should expect most of their compensation in equity, not salary.
- geggam 8y agoStartups by definition bleed money. They measure it with this fancy term called burn rate
- gwbas1c 8y agoEquity doesn't pay the rent. $122k in Silicon Valley doesn't go far.
- geggam 8y agoSingle guy would still be ok with that.
- gwbas1c 8y agoExactly, a young CEO without a lot of savings probably meets that criteria. A founding CEO with a family might have other sources of income to rely on, and be able to get away with less.
- dannypgh 8y agoAnyone can declare themselves to be a one-person company that they're the CEO of. Does that mean they're automatically entitled to make rent?
- gwbas1c 8y agoWe're discussing companies with investors.