CTO Salary and Equity Trends 2009-2011

SoCal CTO

Todd Gitlin of Safire Partners - a go to resource here in LA for recruiting C-level positions at startups - was nice enough to compile some data again this year (see last year's Startup CTO Salary and Equity Data ). You can also enter salary and equity data to see where you stand.

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What Salary Means

This is going to be BIG.

When I was coming out of college, working in finance, I used to think a lot about my salary. I liked maxing out on raises and I liked the feeling I got getting to a six figure salary. It was, in my mind, what the salary meant. I missed the bigger picture of the other things that should go into career score keeping--autonomy, growth paths, equity/revenue sharing, the ability to gain public visibility, opportunities for learning, network building, etc.

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Startup CTO Salary and Equity Data

SoCal CTO

Todd Gitlin of Safire Partners was nice enough to compile some data on Start CTO Salary and Equity at Venture Backed Companies for the LA CTO Forum and present last year. It is interesting to see the salaries of CTOs of pre-Revenue even pre-Launch companies.

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When Is the Right Time to Pay Yourself a Salary?

Up and Running

You might have held off paying yourself while launching your startup, but is it time to give yourself a salary? Here are seven things to consider in order to determine if now is the right time to pay yourself a salary. The post When Is the Right Time to Pay Yourself a Salary?

Where Can I Find Information on Starting Salaries for a SaaS Startup?

Ask The VC

Q: Where can I get some good starting salary information for a SaaS startup? How much should the starting salaries vary for a startup with $5 million vs $10 million gross revenue? Many variables like the company’s age, current revenues, profitability, geography and others all come into play when structuring compensation packages. Compensation compensation saas salaryI need the information for CEO, CFO, CIO, CINO, Director of Sales.

Where Can I Find Information on Starting Salaries for a SaaS Startup?

Ask The VC

Q: Where can I get some good starting salary information for a SaaS startup? How much should the starting salaries vary for a startup with $5 million vs $10 million gross revenue? Many variables like the company’s age, current revenues, profitability, geography and others all come into play when structuring compensation packages. compensation saas salary I need the information for CEO, CFO, CIO, CINO, Director of Sales.

Personalization: How to Build a Revenue Boosting Program from Scratch

ConversionXL

It is about focusing your marketing efforts on a few select companies that could represent huge revenue streams. For some products, customers come in all shapes and sizes, from all countries, all backgrounds, all salaries, and all levels of computer skills.

This Startup Just Published All Employee Salaries (and a Lot More)

Inc Startups

Salaries and how salaries are determined. Revenues. But do you publicly share revenue figures? Do you publish your salary--and the salaries of everyone who works for you--for the world to see? The same goes for revenue figures, KPIs, etc.

Why Making Salaries Public Is Easier Said Than Done

Inc Startups

Yet most organizations are far from transparent when it comes to employee salaries. where the concept of open-book management was first promulgated back in the 1980s, there''s a ton of material on the merits of making all numbers (not just salaries) transparent.

SayAhh’s Revenue Projections

Feld Thoughts

While Jane was building SayAhh’s revenue projections , Dick focused his attention on building the expense side of the projections. It is simple in that it forecasts how much cash will be coming in the door (revenues + equity financing + debt financing) and then subtracts from that amount how much cash is expected to be going out the door. Since this was addressed on the revenue side, we won’t go into details on the expense side.

Even a Non-Profit Startup Needs a Revenue Model

Startup Professionals Musings

Technically speaking, in the United States, a non-profit corporation or association is one which has been exempted from Federal income taxes by meeting the criteria set out Section 501(c) of the Internal Revenue Code, most notably religious, educational, and charitable entities.

How We Got Funded: Visual Revenue

Inc Startups

When bootstrapping didn''t cut it, the founders of Visual Revenue went out and raised $2.2 They didn''t have that luxury for their latest venture, Visual Revenue, which makes predictive analytics software for media companies.

This Startup Says Open Salaries Are Good for Culture

Inc Startups

It sounds crazy, but some entrepreneurs are finding that salary transparency may do wonders for company culture. It''s only recently, however, that Gascoigne decided to experiment with open salaries. By publishing salaries, you limit your ability to compensate outliers.

Box: Strong on Revenues (Weak on Profits) Files IPO

Inc Startups

The cloud-storage company has strong revenue growth, but no profits. Levie draws a salary of $150,000 year and owns four percent of the company, according to the company''s public filing documents. Box''s revenue growth, however, has been strong.

The Inevitable Entrepreneurial Question: How Much You Should Pay Yourself?

Mike Michalowicz

Once you do that, you will be ready to determine a salary that your business will, most likely, be able to sustain. Believe it or not, choosing what salary to pay yourself is actually must easier than you may think! What you are going to do is take a percentage of the top line revenue.

How Does Your Company Stack Up?

Altgate

These data are then anonymized and presented in an interactive web tool (ahem… designed by my firm, ExtensionEngine ) which allows you to look at six different compensation elements: Base Salary. Revenue.

The Pros and Cons of Hourly vs. Salary Pay for the Gym and Fitness Industry by Shannon Simmons

Mike Michalowicz

The consideration of hourly versus salary is one of the most daunting challenges gyms and fitness centers face. Here are some pros and cons of paying hourly instead of salary and of course there’s always the straight commission method as well.

?Show Me the Money?: Is This the Right Business Opportunity?

Taffy Williams

I have actually spoken to a number of out of work professionals that believed the quickest way to a salary after being let go by the previous employer was to start a company. · Equity or future revenue streams could be traded for services.

Organizational Debt is like Technical debt – but worse

Steve Blank

I had lunch last week with Tom, the CEO of a startup that was quickly becoming a large company – last year’s revenue was $40M, this year likely to be $80M maybe even $100 million in ad revenue. to drive traffic to their site, which they then turned into ad revenue.

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5 Elements Of Success Every Startup Should Celebrate

Startup Professionals Musings

Celebrate the ability to pay yourself a salary. Having enough revenue to finally give yourself a salary is an inspiring event, and one that you should savor.

Brittleness comes from “One Thing”

A Smart Bear: Startups and Marketing for Geeks

The company landed one big customer representing 80% of total revenue, but that customer canceled. A suitable replacement is too rare; it takes too long to find someone, convince them to join for almost no salary, and get them up-to-speed and productive.

The Pros and Cons of Hourly vs. Salary Pay for the Gym and Fitness Industry by Shannon Simmons

Mike Michalowicz

The consideration of hourly versus salary is one of the most daunting challenges gyms and fitness centers face. Here are some pros and cons of paying hourly instead of salary and of course there’s always the straight commission method as well.

How Much Should You Pay Yourself?

Up and Running

The question is, how do you decide what your own salary should be? We asked 12 founders from the Young Entrepreneur Council: How should startup founders calculate their own salaries versus those of staff members once the company starts to grow? What’s your slice of the pie?

6 Principles For Proper Use Of Funds From Investors

Startup Professionals Musings

Those who respond with one of the wrong answers, such as “I want to pay myself a salary,” usually go home empty-handed. Funding for founder salaries at this stage is a red flag. You may pay salaries to your team, but your salary should come from earnings, when they occur.

8 Secrets To Credible Startup Financial Projections

Startup Professionals Musings

I recently saw a startup projecting $50 million in revenue for the first year. I recommend five-year projections, to show the evolution of revenues and expenses and funding and profitability expectations over time. Revenue projections show penetration of target opportunity.

CASH IS KING. Or is it?

Scalable Startup

Where does revenue fall here? Revenue? When a startup has none, cash seems like liquid gold that can flow over the business and cure all – salaries, resources, exposure, growth, success, new offices, marketing. So what about REVENUE? Revenue is close to cash in it’s power within a startup. Revenue has to be managed properly and leveraged wherever possible, but those are good problems to have. Aurum Rex. Nummus Rex. Emptor Rex.

The Correct Answers to 'How Will You Use My Money?'

Startup Professionals Musings

Those who respond with one of the wrong answers, such as “I want to pay myself a salary,” usually go home empty-handed. Funding for founder salaries at this stage is a red flag. You may pay salaries to your team, but your salary should come from earnings, when they occur.

CTO Equity and Compensation at Venture Backed Companies

SoCal CTO

It is interesting to see the salaries of CTOs of pre-Revenue even pre-Launch companies. Total Funding Revenue CTO Compensation and Equity based on Location A few items jump out at me in terms of CTO Equity and Compensation relative to geography.

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Why these 9 companies choose transparency

The Next Web

Within the last couple of years, you are now starting to see actual companies sharing their revenue numbers and many other things (like employee’s salaries). As Neil Patel recently said, “transparency is the new marketing.”

8 Steps In Securing A Bank Loan To Fund Your Startup

Startup Professionals Musings

The failure rate is just too high, and startups typically don’t have the assets or revenue stream to back up the loan. Demonstrate an ability to repay from revenues, not collateral. Eliminate your salary from the use of funds.

The unprofitable SaaS business model trap

A Smart Bear: Startups and Marketing for Geeks

Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. of revenue, force-feeding sales pipelines with an unprofitable product. SaaS companies earn their revenue over time. of revenue, $0.30

5 Steps To Maximizing Your Startup Cash Flow Runway

Startup Professionals Musings

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Cash flow is a basic survival metric for every startup.

Should Startups Care About Profitability?

Both Sides of the Table

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. Revenue When I look at an income statement I start by focusing on the revenue line.

Investors Measure Entrepreneurs By Cashflow Mileage

Startup Professionals Musings

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Cashflow is a basic survival metric for every startup.

Get Investors Onboard With Your Startup

YoungUpstarts

Investors want to see in-depth financial reports that reinforce the startup has an organized business model with potential for revenue growth. Founders overlook how their salary looks to investors. >Investors

Why we have a core value of transparency at our startup, and why the reasons don't matter

joel.is

Annual Recurring Revenue (ARR) is currently $4.35m. That means Revenue Per Employee is around $181k. We share the salaries of the whole team in this spreadsheet. My salary is $175k. We have a formula which determines the salaries of everyone in the team.

Bootstrapping Organic Growth Makes Startup Sense

Gust

Most startup founders already do this, rather than take a salary, to improve their offering. In most cases there is a direct correlation between the quality of your decisions and the size of your revenue stream. Image via Flickr from Food For Thought album.

How to think about cash vs. equity compensation

A Smart Bear: Startups and Marketing for Geeks

The question is further complicated when the new hire is getting a salary. Typically the salary is less than market with the balance given in the form of equity, but again how do you compute that when the stock is, today, of no value?

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Equity for Early Employees in Early Stage Startups

SoCal CTO

Suppose further that he's going to cost $60k a year in salary and overhead, x 1.5 = $90k total. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups.

Sizing Option Pools In Connection With Financings

A VC : Venture Capital and Technology

Without revenue coming in, five employees will suck up half of that money over 12 to 18 months. Take the cumulative salaries of all the hires you need to make betwen the current financing and the next one. And it is conservative because I don't recommend giving options equal to the dollar value of the annual salary of your hires. It should be based on an option grant methodology that is driven off annual salary, and an option budget based on headcount and hiring plans.