Today we look at Chief Commercial Officer / EVP Sales & Marketing Executive Compensation Highlights in PE-backed middle-market software & services.
As executive recruiters, we are often asked about executive compensation.
When we complete an assignment, we aggregate the compensation data we have collected across the search, and share it with the executive talent community from which it came. In this case, in Q2, 2017 we finished a Chief Commercial Officer search for a growth equity software & services client located in South Central US.
Our search strategy focused on the target talent pool comprising those who either currently or in recent past roles held titles of CCO, VP Sales & Marketing, Chief Revenue Officer, or similar. The goal was to identify an executive who had extensive experience and a successful track record with investor backed companies, growing top line revenue globally in a B2B sale, pushing the company through the $100M revenue mark in the next 24 months. Further focus would be on global sales expansion, channel sales enablement, channel sales distribution, new product launch, and gross margin preservation. Below is the summary compensation data.
Graphing each compensation component of base salary, bonus, and OTE (on target earnings) this is what takes shape when you break it out into quartiles--
In looking at bonuses, it was interesting to ascertain bonus as a multiple of base salary. Below is what we found, again broken out into quartiles—
This data is relevant for private equity-backed/growth equity-backed SaaS software and services businesses that are profitable, with 15-100% annual top line growth rates, and revenues between $50M and $500M. This particular BSG client was a B2B software ISV.
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