How Does A CEO Determine Their Pay?
“So, what are you going to pay yourself?” One of our investors asked me after we closed our funding.
I told him the number.
“Sounds a little rich to me,” he replied. He would have said that to any number I said.
The reality was I had researched what other CEOs of similar companies at the same stage and funding were making. I chose a median point, and, yes, I stuck with the number.
In theory, your board of directors is supposed to determine your salary. However, I wouldn’t recommend asking them what you should be paid because you are likely to be disappointed.
Instead do the research. And do what’s right for yourself and the company.
You need your funding to last at least 18 months if not longer. So you need to make sure the salaries of you and your team, plus your other expenses don’t drain your funding too quickly.