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Dear SaaStr: We’re Thinking of Bringing in an Outside CEO to Help Us Scale. How Much Should We Pay Them?

  • Consider carefully before bringing in an outside CEO, as most successful SaaS companies that go public have founder-CEOs.
  • Prioritize considering hiring experienced VPs to help scale before opting for an outside CEO.
  • For an outside CEO, the typical base salary post-Series A or Series B funding rounds ranges from $250k-$400k, potentially going up to $500k at $15M-$20M in ARR.
  • Equity for an outside CEO is a crucial incentive, usually ranging from 6-8% equity in the company, possibly 4-5% for mid-stage companies, with a standard four-year vesting period and one-year cliff.

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