Pay Yourself Based on Industry Standards

Advantages
  • It’s better for you financially. By receiving a full salary or one close to industry norms, you make less of a sacrifice now.
  • It prepares the company for the future, rather than protecting it. Your company could have less of an adjustment when it becomes more profitable and would be expected to pay a higher salary.
Disadvantages
  • It could be financially draining for the company. The first goal for your company is to survive. After the first year or two, you can focus on building and growing.
  • Unrealistic expectations. It could be unrealistic to expect a new startup company to pay ‘industry-norm’ salaries.

Deciding Factor

  • Is it important for you to send a signal to investors and/or colleagues or peers about your level of compensation?
 

Game Plan

  • Talk with industry peers, including any other CEOs of start-ups whom you know, to learn about standards and norms.
  • Find more about industry standards for salaries at www.salary.com. Read about the topic of CEO compensation of start-up companies. Good sources include www.entrepreneur.com.
  • Talk with your accountant as needed for financial and tax guidance.
 
Need Business Insurance?

Need Business Insurance?

For more than 200 years businesses have trusted The Hartford. We can help you get the right coverage with an online quote.
 
Iniciar cotización
Find Out More About Startup Benefits
The content displayed is for information only and does not constitute an endorsement by, or represent the view of, The Hartford.