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Founder Compensation

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Earlier this week, the Wall Street Journal’s Accelerator’s column focused on the topic of executive compensation.  This is a hot topic in the startup world, especially when investors are involved. Christina Bechhold, co-founder of Empire Angels, has some great advice — talk about it.  Those founders who are transparent about compensation and how it is calculated, help alleviate any tension the topic creates.

The internet has brought more transparency in the compensation process. The benchmarking tool, Startup Compass, posts founder pay data in the aggregate across all positions, levels and regions. Also Payscale lets individuals benchmark specific positions and locations.

In a recent Entrepreneur column, venture capitalist Sharon Wienbar makes sense out of compensation at venture-backed companies.  She shares that equity is a large part of a founder’s compensation.  She also shares the chart below, showing median compensation data for U.S. technology startups.

exec compensation_1Both transparency and benchmarking are worthwhile to reduce friction compensation causes within a startup.

 

Startup Compass posts some data for founders’ pay, but that data aggregates founders across all positions, levels and regions. Also Payscale lets individuals benchmark specific positions and locations. – See more at: http://www.scalevp.com/blog?pid=192#sthash.CdATgqsP.dpuf

 

Startup Compass posts some data for founders’ pay, but that data aggregates founders across all positions, levels and regions. Also Payscale lets individuals benchmark specific positions and locations. – See more at: http://www.scalevp.com/blog?pid=192#sthash.CdATgqsP.dpuf
Startup Compass posts some data for founders’ pay, but that data aggregates founders across all positions, levels and regions. Also Payscale lets individuals benchmark specific positions and locations. – See more at: http://www.scalevp.com/blog?pid=192#sthash.CdATgqsP.dpuf