CEO Salary Survey: Consumer Products Industry
Raw Selection recently held a Salary Survey, focusing on CEOs who are based in the US in the consumer products industry. We have split the results up into three categories, depending on the company’s revenue size.
Below 50M | 50M to 150M | 150M Plus
Below $50M
We found the lowest salary in this category to be $60,000. The highest salary from a CEO in a company with less than $50M in revenue is $450,000. Of the participants in this category, the median salary is $300,000.
In terms of bonus percentage, we found that a large number of participants in this category, 57%, received more than 50% in bonus. The highest bonus received was 2x their salary base rate.
43% of participants received less than 50%. The lowest bonus for participants was 0%.
We found that 14% of participants received their bonus on the basis of EBITDA performance.
Of the participants working in firms with below $50M in revenue, 69% had equity, with the remaining 31% receiving none.
$50M to $150M
We found the lowest salary in this category to be $235,000. The highest salary for a CEO in a company with between $50M and $150M in revenue is $500,000. Of the participants in this category, the median salary is $300,000.
In terms of bonus percentage, we found that a small majority of participants in this category, 37%, received a 50% bonus or more.
61% of participants received below 50%. The lowest amount of bonus for participants was 0%.
We found that 5% of participants received a performance-based bonus.
Of the participants of the salary survey working in firms with between $50 and $150 revenue, 61% did not receive equity.
$150M+
We found the lowest salary in this category to be $110,000. The highest salary from a CEO in a company with over $150M in revenue is $550,000. Of the participants in this category, the median salary is $300,000.
In terms of bonus percentage, we found that 74% of participants received 50% or less in bonus – With the lowest being 0%.
The remaining 26% of participants received over 50% in bonus – The highest being 100%.
Of the participants of the salary survey working in firms with $150+ in revenue, only 42% received equity.
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FAQs
You can locate information about executive pay in: (1) the company's annual proxy statement; (2) the company's annual report on Form 10-K; and (3) registration statements filed by the company to register securities for sale to the public.
What is a good ratio for CEO salary? ›
Where the estimated pay ratio across all respondents was reported to be 10-to1, the same group of people reported an ideal pay ratio of 4.6-to-1. And there you have it. The ideal CEO-to-employee pay ratio is not even 5-to-1. That is nearly 50 times lower than the actual practiced pay ratio of 202-to-1.
What does the average CEO of a startup make? ›
How much does a Startup Ceo make? As of Jun 9, 2024, the average annual pay for a Startup Ceo in the United States is $82,146 a year. Just in case you need a simple salary calculator, that works out to be approximately $39.49 an hour. This is the equivalent of $1,579/week or $6,845/month.
What is true of CEOs compensation? ›
CEOs often receive base salaries well over $1 million. In other words, the CEO is rewarded substantially when the company does well. However, the CEO is also rewarded when the company performs poorly. On their own, large base salaries offer little incentive for executives to work harder and make smart decisions.
How much does a CEO of a $500 million company make? ›
CEO compensation: United States
By company size, base, bonus, and total cash compensation all rise as revenue does, with total average cash compensation coming in at $1,427,000 at companies with revenue above $500 million.
What is the formula for CEO salary? ›
The CEO pay ratio is computed by dividing the CEO's remuneration by the median employee's remuneration. The CEO pay ratio allows boards to analyze how their company's pay ratio compares to similar companies and whether there have been any significant changes from past years.
What is the average salary of a CEO of a Fortune 500 company? ›
In the past 10 years, CEO pay at S&P 500 companies increased by more than $5 million to an average of $16.7 million in 2022. Meanwhile, the average U.S. worker saw a wage increase of $15,460 over the past decade, earning on average just $61,900 in 2022. Blackstone Inc.
What is excessive CEO pay ratio? ›
According to the Economic Policy Institute, from 1978 to 2022, CEO compensation grew by 1,047 percent. Meanwhile, after adjusting for inflation, the average worker makes nearly $50 a week less than he or she did over 50 years ago. The ratio of CEO-to-worker compensation was 344 to 1 in 2022, up from 21 to 1 in 1965.
How much should I pay myself as CEO? ›
If your business is established and profitable, pay yourself a regular salary equal to a percentage of your average monthly profit. Don't set your monthly salary to an amount that may stress your company's finances at any point.
How much should a CEO of a small company make? ›
While ZipRecruiter is seeing annual salaries as high as $188,500 and as low as $48,500, the majority of Small Business Ceo salaries currently range between $81,000 (25th percentile) to $121,000 (75th percentile) with top earners (90th percentile) making $156,000 annually across the United States.
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 suggests that 5 to 10 percent is a fair equity stake for CEOs who join the company later.
How much has the average CEO salary increase? ›
In 2023, the median CEO base salary rose 4.1 percent, tracking ahead of the latest 3.2 percent inflation figure released in November. While that's a reasonable bump, it's lower than the median increase of 4.9 percent paid out in 2022—and next year, CEO's base salary increase may fall even further.
How to determine a CEOs salary? ›
To find CEO compensation, review the following documents:
- Public filings with the SEC.
- The company's annual proxy statement.
- Form 10-K, specifically the company's annual report.
- Registration statements.
There is no definitive answer to this question as the salary of a CEO can vary greatly depending on the size and type of company they are running. However, a CEO of a 40 million dollar company would likely make an annual salary in the range of 300,000 to 500,000 dollars.
How much money does a CEO make on average? ›
What Is the Average Ceo Salary by State
| State | Annual Salary | Monthly Pay |
|---|
| California | $147,753 | $12,312 |
| Maine | $143,698 | $11,974 |
| Massachusetts | $142,095 | $11,841 |
| Idaho | $141,790 | $11,815 |
46 more rowsA typical executive compensation package has financial and non-financial components. They are salary, benefits, bonuses and equity. Commonly, an executive would get more amount of equity than a normal worker and a normal worker quite often wouldn't get any equity in a private company.
Which CEO makes $1 a year? ›
Meet the $1 CEO Club. It might sound uncanny, but it is true: CEOs and former CEOs from major tech companies have or had salaries of just $1. Yes, Elon Musk (Tesla), Jeremy Stoppelman (Yelp), Larry Ellison (Oracle), Meg Whitman (HP), and Steve Jobs (Apple) earn or earned paychecks of just one dollar a month.
