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compensation-benchmarks skill

/hiring/skills/compensation-benchmarks

This skill provides salary and equity benchmarks for startups by stage, role, and location to help you craft competitive offers.

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SKILL.md
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---
name: Compensation Benchmarks
description: This skill should be used when the user asks about "salary ranges", "equity grants", "compensation benchmarks", "how much to pay", "competitive offer", "market rate", "startup compensation", "equity percentages", "option grants", or mentions specific compensation questions like "what should I pay a senior engineer" or "how much equity for a VP".
version: 0.1.0
---

# Startup Compensation Benchmarks

## Overview

This skill provides salary and equity benchmark data for startup hiring. Data is segmented by company stage, role level, and location tier to help CEOs make competitive offers.

## How to Use This Data

1. **Identify company stage** (Seed, Series A, B, C+)
2. **Determine role level** (IC, Senior, Staff, Manager, Director, VP, C-level)
3. **Apply location tier adjustment** (Tier 1, 2, or 3)
4. **Consider percentile target** (25th for budget-conscious, 50th for competitive, 75th for aggressive)

## Salary Benchmarks by Stage and Level

### Seed Stage Companies

| Level | 25th %ile | 50th %ile | 75th %ile |
|-------|-----------|-----------|-----------|
| Junior IC | $70K | $85K | $100K |
| Mid IC | $90K | $110K | $130K |
| Senior IC | $120K | $145K | $170K |
| Staff IC | $150K | $175K | $200K |
| Manager | $130K | $155K | $180K |
| Director | $160K | $190K | $220K |
| VP | $180K | $220K | $260K |

### Series A Companies

| Level | 25th %ile | 50th %ile | 75th %ile |
|-------|-----------|-----------|-----------|
| Junior IC | $80K | $95K | $115K |
| Mid IC | $100K | $125K | $150K |
| Senior IC | $140K | $165K | $190K |
| Staff IC | $170K | $200K | $230K |
| Manager | $150K | $175K | $200K |
| Director | $180K | $215K | $250K |
| VP | $220K | $270K | $320K |

### Series B Companies

| Level | 25th %ile | 50th %ile | 75th %ile |
|-------|-----------|-----------|-----------|
| Junior IC | $90K | $105K | $125K |
| Mid IC | $115K | $140K | $165K |
| Senior IC | $155K | $185K | $215K |
| Staff IC | $190K | $225K | $260K |
| Manager | $165K | $195K | $225K |
| Director | $200K | $240K | $280K |
| VP | $260K | $310K | $360K |

### Series C+ Companies

| Level | 25th %ile | 50th %ile | 75th %ile |
|-------|-----------|-----------|-----------|
| Junior IC | $100K | $120K | $140K |
| Mid IC | $130K | $155K | $180K |
| Senior IC | $170K | $200K | $235K |
| Staff IC | $210K | $250K | $290K |
| Manager | $180K | $215K | $250K |
| Director | $225K | $270K | $315K |
| VP | $300K | $360K | $420K |

## Location Tier Adjustments

| Tier | Description | Multiplier |
|------|-------------|------------|
| Tier 1 | SF, NYC, Seattle | 1.0x (baseline) |
| Tier 2 | LA, Boston, Austin, Denver, DC | 0.90x |
| Tier 3 | Remote / Other locations | 0.80-0.85x |

**Application:** Multiply base salary by location multiplier.

## Equity Benchmarks by Stage and Level

Equity shown as percentage of fully-diluted company ownership.

### Seed Stage

| Level | 25th %ile | 50th %ile | 75th %ile |
|-------|-----------|-----------|-----------|
| Junior IC | 0.02% | 0.05% | 0.10% |
| Mid IC | 0.05% | 0.10% | 0.20% |
| Senior IC | 0.10% | 0.25% | 0.50% |
| Staff IC | 0.25% | 0.50% | 0.75% |
| Manager | 0.15% | 0.30% | 0.50% |
| Director | 0.40% | 0.75% | 1.00% |
| VP | 0.75% | 1.25% | 2.00% |

### Series A

| Level | 25th %ile | 50th %ile | 75th %ile |
|-------|-----------|-----------|-----------|
| Junior IC | 0.01% | 0.025% | 0.05% |
| Mid IC | 0.025% | 0.05% | 0.10% |
| Senior IC | 0.05% | 0.15% | 0.30% |
| Staff IC | 0.15% | 0.30% | 0.50% |
| Manager | 0.10% | 0.20% | 0.35% |
| Director | 0.25% | 0.50% | 0.75% |
| VP | 0.50% | 1.00% | 1.50% |

### Series B

| Level | 25th %ile | 50th %ile | 75th %ile |
|-------|-----------|-----------|-----------|
| Junior IC | 0.005% | 0.015% | 0.03% |
| Mid IC | 0.015% | 0.03% | 0.06% |
| Senior IC | 0.03% | 0.08% | 0.15% |
| Staff IC | 0.08% | 0.15% | 0.25% |
| Manager | 0.05% | 0.10% | 0.20% |
| Director | 0.15% | 0.30% | 0.50% |
| VP | 0.30% | 0.60% | 1.00% |

### Series C+

| Level | 25th %ile | 50th %ile | 75th %ile |
|-------|-----------|-----------|-----------|
| Junior IC | 0.002% | 0.005% | 0.01% |
| Mid IC | 0.005% | 0.015% | 0.03% |
| Senior IC | 0.015% | 0.04% | 0.08% |
| Staff IC | 0.04% | 0.08% | 0.15% |
| Manager | 0.025% | 0.05% | 0.10% |
| Director | 0.08% | 0.15% | 0.30% |
| VP | 0.15% | 0.35% | 0.60% |

## Role-Specific Adjustments

### Engineering
- Machine Learning / AI: +10-20% salary premium
- Security / Infrastructure: +5-15% salary premium
- Frontend typically at baseline

### Sales
- Base + OTE structure (typically 50/50 or 60/40 split)
- AE OTE typically 2x base
- Sales leadership may have accelerators

### Executive Hires
- C-level equity: 1-5% depending on stage and role
- CEO typically retains largest stake
- CTO/CFO often second-tier equity

## Refresh Grants

Annual equity refreshes to retain talent:

| Stage | Typical Annual Refresh |
|-------|----------------------|
| Seed | 25-50% of original grant |
| Series A | 20-40% of original grant |
| Series B | 15-30% of original grant |
| Series C+ | 10-25% of original grant |

## Total Compensation Philosophy

**Cash vs. Equity Tradeoffs:**
- Earlier stage = more equity, less cash
- Candidate with family/mortgage may prefer cash
- Experienced candidates often value equity more
- Consider candidate's risk tolerance

**Competitive Positioning:**
- 25th percentile: Budget-conscious, offset with equity or mission
- 50th percentile: Market-competitive baseline
- 75th percentile: Aggressive hiring, competing for top talent

## Additional Resources

For detailed role-specific guidance, see:
- **`references/engineering-compensation.md`** - Engineering role breakdowns
- **`references/sales-compensation.md`** - Sales comp structures
- **`references/executive-compensation.md`** - C-level and VP packages

Overview

This skill provides salary and equity benchmark guidance for startup hiring across stages, role levels, and location tiers. It helps founders and talent leaders craft competitive offers by combining percentile targets with location adjustments and role-specific premiums. The output is practical and actionable for salary ranges, equity grants, and total-compensation tradeoffs.

How this skill works

Identify the company stage (Seed, Series A, Series B, Series C+), pick the role level (IC, Senior, Staff, Manager, Director, VP, C-level), and choose a percentile target (25th, 50th, 75th) to set a base salary or equity percentage. Apply a location multiplier (Tier 1 baseline, Tier 2 ~0.9x, Tier 3 ~0.8–0.85x) and add role-specific premiums (e.g., ML/AI +10–20%). Use refresh percentages and cash-vs-equity guidance to finalize offer structure.

When to use it

  • Setting salary ranges for a new hire at Seed to Series C+ startups
  • Estimating equity grants for ICs, managers, directors, VPs, and executives
  • Comparing market-competitive (50th) vs aggressive (75th) vs budget-conscious (25th) offers
  • Adjusting compensation for location cost-of-living differences
  • Designing refresh grants and long-term retention packages

Best practices

  • Start by deciding your percentile target based on budget and hiring urgency
  • Multiply base salary by the location tier multiplier to localize offers
  • Add discipline-specific premiums (e.g., ML, security) where appropriate
  • Balance cash and equity according to candidate risk tolerance and life stage
  • Document refresh grant expectations and frequency in offers

Example use cases

  • Offer a competitive Senior IC package at Series A: pick 50th salary and 50th equity, apply location multiplier
  • Determine VP equity at Seed by selecting a target percentile (e.g., 1.25% at 50th) and adjust salary for Tier 2 city
  • Create a sales comp plan with base + OTE split (common 50/50 or 60/40) and AE OTE ~2x base
  • Estimate annual refresh grants (e.g., 20–40% of original grant at Series A) when planning total comp budget

FAQ

How do I choose between 25th, 50th, and 75th percentiles?

Use 25th if budget-constrained and willing to trade cash vs equity; 50th for market-competitive hiring; 75th to aggressively recruit top talent or counter competing offers.

How are location adjustments applied?

Multiply the base (Tier 1) salary by the location multiplier: Tier 2 ≈0.90x, Tier 3 ≈0.80–0.85x to reflect local market pay differences.