Startup compensation combines base salary, variable pay, equity and benefits, and the right mix depends on a company’s funding stage, runway, and the role being hired. In 2026, Kruze Consulting’s payroll data shows the average venture-backed startup CEO earns $165,000 in cash salary, with Seed-stage CEOs averaging $153,000. For early employees, public startup salary data shows average expected salaries ranging from about $59,000 for customer service roles to about $166,000 for product managers, with software engineers averaging roughly $154,000.
This guide supports Kruze’s annual 2026 Startup CEO Salary Report and 2026 Startup C-Suite Salary Guide, which break down founder and executive pay by funding stage. Here we cover the rest of the hiring plan: what early engineers, salespeople, designers, marketers, and support staff typically earn, how much equity to offer, and what each hire really costs once taxes and benefits are included. As startup accountants who work with venture-backed companies every day, we wrote it to help founders hire competitively without burning through runway.
A note on the data: Kruze’s executive figures come from actual, anonymized client payroll records. The employee figures in this guide come from public startup salary data, which reflects the salaries candidates expect rather than verified payroll. We keep the two separate throughout so you can use each appropriately.
Key takeaways: startup compensation in 2026
- CEO pay: The average startup CEO salary is $165,000 (median $159,000). By stage, CEOs average $153,000 at Seed, $203,000 at Series A and $216,000 at Series B.
- CTO and COO pay: Both average $167,000. CTOs lead at Seed ($155,000); COOs lead at Series A ($227,000) and Series B ($246,000)
- Engineering: Software engineers average about $154,000, machine learning engineers about $165,000, and full-stack engineers about $127,000 (public startup data).
- Other roles: Average expected salaries run from about $59,000 for customer service to about $166,000 for product managers, and the spread within each role is wide.
- Total cost: Plan for total employer cost of about 25%-35% above base salary.
- Equity: The median first engineer at a tech startup receives 1.54% of the company, according to Carta.
What is included in startup compensation?
Startup compensation is the total value an employee receives for their work. For venture-backed companies, it usually has four parts:
- Base salary: Fixed cash pay for the role.
- Variable compensation: Commissions, performance bonuses or other incentive pay.
- Equity: Stock options or other equity awards, subject to the company’s plan and grant terms.
- Benefits: Health coverage, retirement contributions, paid leave and other employer-provided benefits
Employers also carry costs that never appear in an offer letter, including payroll taxes, insurance, payroll software, recruiting, and equipment. These costs affect cash burn even though they are not part of an employee’s quoted pay, so build them into the hiring budget (see “How much should startups budget beyond base salary?” below).
How much do startup founders pay themselves in 2026?
Founder pay depends on the founder’s role, the company’s funding stage, and its cash runway. Kruze’s 2026 payroll benchmarks show the following average annual cash salaries for US-based, venture-backed startups:
| Funding stage | CEO | CTO | COO |
|---|---|---|---|
| Seed | $153,000 | $155,000 | $144,000 |
| Series A | $203,000 | $196,000 | $227,000 |
| Series B | $216,000 | $238,000 | $246,000 |
| Overall average | $165,000 | $167,000 | $167,000 |
| Overall median | $159,000 | $166,000 | $150,000 |
Source: Kruze Consulting’s 2026 Startup CEO Salary Report and 2026 Startup C-Suite Salary Guide, based on anonymized client payroll data. Figures are cash salary and exclude equity. Overall figures reflect the mix of companies in the data and are not simple averages of the stage rows.
No single executive role is the highest paid at every stage. CTOs earn the most at Seed ($227,000) and Series B ($246,000). Many Seed-stage companies have no dedicated COO, so the role is folded into the CEO’s job or filled part-time; by Series A and B, boards pay a premium for an experienced operator to run day-to-day execution. A founder’s title alone is therefore not enough to set a salary.
Kruze’s CEO report puts typical 2026 CEO salary ranges at $130,000-$170,000 for Seed, $180,000-$230,000 for Series A, and $200,000-$260,000 for Series B. For historical trends, average-versus-median analysis, and board review templates, read the full CEO salary report and C-suite salary guide.
Founder Compensation Calculator
Use Kruze’s Founder Compensation Calculator to see what founders at comparable US venture-backed startups typically pay themselves. Enter your funding stage and industry for an estimate, then compare the result with the benchmarks above and test the effect on your hiring budget and runway.
A calculator estimate is a starting point for discussion with your board and advisers, not an approved compensation decision or a guarantee of market pay.
How much do startups pay early employees in 2026?
Early-employee pay varies with the role, the candidate’s experience, the startup’s funding, and whether the company adjusts pay by location. The tables below show average salaries for the roles startups hire most often, grouped by function. All figures are US-wide averages for startups, not figures for any single city or region.
How to read the tables: The overall average is the average expected salary for the role across US-based startups. The lower-tier and top-of-market averages are the averages of the lower and upper pay tiers Wellfound reports for the same role, which show how pay can differ between less experienced and more senior or specialized candidates. The full reported range runs from the lowest to the highest salary in the data. Wellfound does not tie these tiers to specific job levels, so treat them as pay bands rather than a seniority ladder.
What do startup engineers earn in 2026?
Engineering is usually the first and largest hiring area for a venture-backed startup. Software engineers at US startups average about $154,000, with reported salaries ranging from $67,000 to $239,000. Specialization moves the number: machine learning engineers average about $165,000, while full-stack engineers average about $127,000.
| Role | Lower-tier average | Overall average | Top-of-market average | Full reported range |
|---|---|---|---|---|
| Software engineer | $110,000 | $154,000 | $219,000 | $67,000 – $239,000 |
| Full-stack engineer | $75,000 | $127,000 | $191,000 | $62,000 – $210,000 |
| Machine learning engineer | $117,000 | $165,000 | $249,000 | $81,000 – $271,000 |
Average expected annual salary at US-based startups. Source: Wellfound startup hiring data, reviewed October 28, 2026 (see “Sources and methodology” below).
AI and machine learning talent is the most competitive segment. Carta reports that from January 2024 through February 2026 the median salary for AI/ML engineers at startups rose 9.1% and their median initial equity grant rose 31%, with the largest equity gains at the smallest startups. Entry-level, mid-level, senior, and staff engineers should not share one salary band, so match each offer to the job’s scope, any architecture or team-leadership responsibility, and the specific technical skills required.
What do startup sales hires earn in 2026?
Sales pay at startups combines base salary with commission. OTE, short for on-target earnings, is base salary plus the variable pay a salesperson earns by hitting target. For example, a $90,000 base with $90,000 in target commission equals $180,000 OTE; that is an illustration, not a market benchmark. In our experience, OTE for early sales hires often runs about double the base salary, but the split varies with the role, quota, and sales cycle.
| Role | Lower-tier average | Overall average | Top-of-market average | Full reported range |
|---|---|---|---|---|
| Sales (broad category) | $66,000 | $95,000 | $177,000 | $52,000 – $200,000 |
| Sales development representative (SDR) | $51,000 | $65,000 | $103,000 | $45,000 – $125,000 |
| Account executive | $88,000 | $123,000 | $232,000 | $75,000 – $300,000 |
Average expected annual salary at US-based startups. Source: Wellfound startup hiring data, reviewed October 28, 2026 (see “Sources and methodology” below).
Wellfound does not say whether its sales figures reflect base salary or total target cash, so confirm what a benchmark measures before using it to set a base. Match the role to its quota and sales cycle: an SDR who books meetings is a different hire from an account executive who closes deals. Many startups add sales talent after they reach early product-market fit.
What do startup product and design hires earn in 2026?
Product managers have the highest average salary of any employee role in this guide, at about $166,000. Designers are harder to benchmark because the title covers very different jobs: the broad “designer” category averages about $94,000, while product designers average about $154,000. Product and design hires typically join once the core engineering team is in place.
| Role | Lower-tier average | Overall average | Top-of-market average | Full reported range |
|---|---|---|---|---|
| Product manager | $130,000 | $166,000 | $237,000 | $77,000 – $255,000 |
| Designer (broad category) | $75,000 | $94,000 | $165,000 | $45,000 – $205,000 |
| Product designer | $117,000 | $154,000 | $225,000 | $90,000 – $238,000 |
Average expected annual salary at US-based startups. Source: Wellfound startup hiring data, reviewed October 28, 2026 (see “Sources and methodology” below).
Define the job before comparing salaries. A product manager is not a product designer, and a general designer average does not establish the market rate for a senior product designer. Product hires range from engineers-turned-product-leaders to junior hires learning the craft, which is why the reported range for product managers spans $77,000 to $255,000.
What do startup marketing, support and operations hires earn in 2026?
The timing of marketing and operations hires depends on the business model. Companies with operationally intensive models bring on customer support, customer success, or administrative help early, while marketing timing is more variable: Some founders prioritize it from the start, and others wait until funding or a specific need makes it unavoidable.
| Role | Lower-tier average | Overall average | Top-of-market average | Full reported range |
|---|---|---|---|---|
| Marketing manager | $91,000 | $127,000 | $202,000 | $60,000 – $220,000 |
| CMO (proxy for Head of Marketing) | $102,000 | $162,000 | $278,000 | $54,000 – $427,000 |
| Customer service | $42,000 | $59,000 | $118,000 | $35,000 – $145,000 |
| Customer success manager | $84,000 | $111,000 | $175,000 | $62,000 – $198,000 |
| Office manager (proxy for administrative support) | $59,000 | $79,000 | $144,000 | $40,000 – $180,000 |
Average expected annual salary at US-based startups. Source: Wellfound startup hiring data, reviewed October 28, 2026 (see “Sources and methodology” below). Public data has no separate “Head of Marketing” or “assistant” category, so the CMO and office manager rows are the closest available proxies.
Use the CMO row as an outer reference, not a target. Its reported range ($54,000 to $427,000) is the widest in this guide because the title covers everything from a first marketing leader at a very small startup to a seasoned executive. A marketing manager is not necessarily comparable to a Head of Marketing, and general customer service differs from technical support, account management and customer success, so define the role before you benchmark it.
Sources and methodology. Employee salary figures come from Wellfound’s public startup hiring data, which reports average expected salaries for US-based startups by role. Wellfound updates its data weekly, and we reviewed the role pages on October 28, 2026. Because these are self-reported expected salaries rather than verified payroll, they can differ from what companies actually pay and will change as Wellfound updates its data. Market context on equity grants, AI/ML pay and hiring trends comes from Carta’s State of Startup Compensation H2 2025 report. Executive salaries come from Kruze’s own payroll data in the CEO and C-suite reports linked above.
How much should startups budget beyond base salary?
Base salary is only part of the cash cost of a hire. As a rule of thumb, Kruze recommends budgeting total compensation costs about 25%-35% above base salary, though the right figure varies by state, city and benefits package.
| Cost category | Typical cost | What it covers |
|---|---|---|
| Required payroll costs | About 10% of base | Employer payroll taxes (Social Security and Medicare), state unemployment insurance, workers’ compensation, and state disability insurance or local payroll taxes where they apply |
| Optional benefits | About 15%–25% of base | Health, dental and vision insurance (usually the largest benefit cost), 401(k) plans and matching, and life and disability insurance |
| One-time setup costs | About 2,500–3,000 per employee for equipment | Laptops and monitors, plus software licenses, onboarding, training and any recruiting fees |
| Variable pay | Varies by role | Commissions, bonuses and sign-on payments. Budget these separately; sales commissions can push total cost above the 25%–35% allowance |
Source: Kruze Consulting’s experience with venture-backed startup payroll. Treat these as planning assumptions, not measured national averages.
For example, a $150,000 salary with a 30% load produces a $195,000 annual budget, or $16,250 per month, before one-time costs such as equipment and recruiting. If a salary already includes paid time off, avoid counting it twice, and model any coverage or backfill costs separately.
Model each hire’s start date and fully loaded monthly cost in your financial forecast, and check how it changes your runway. Kruze’s guides to payroll taxes for startups and startup payroll costs break these costs down in more detail, a startup budget template is a good place to start, and our financial modeling services team can build hiring into your forecast.
How much equity do startup employees get?
There is no single equity percentage that fits every early employee. Grants depend on role, seniority, hiring order, company stage, and how much of the offer is cash. Early hires take on more risk, so they typically receive larger grants than later hires. Carta’s cap table data gives useful reference points:
| Benchmark | Median grant | Context |
|---|---|---|
| First engineer at a tech startup | 1.54% | The middle half of grants runs from about 0.61% to roughly 4%. Based on grants over the prior two years (Carta, December 2025). |
| Next engineering hires | About 0.61% | Carta reports the median falls to about 0.61% after just two hires (Carta, December 2025). |
| Fifth hire, any role | About 0.3% | From Carta’s analysis of nearly 5,000 first-five hires made in 2023 (published March 2024). |
Percentages are of fully diluted shares and represent the full multi-year grant, not an annual amount. Sources: Carta’s first-engineer equity analysis and Carta’s first-five-hires analysis.
Carta also reports that roughly 70% of a tech startup’s first hires are engineers, and that median initial equity grants for individual contributors rose nearly 11% over the two years to early 2026.
The median seed-stage team now has just four employees. Use these figures as reference points, not rules: any individual hire may merit a much larger or smaller grant based on experience and the cash in the offer.
Keep these principles in mind when you structure grants:
- Express each grant as a number of shares or options, and state the fully diluted share count behind any percentage.
- Explain vesting, the exercise price, and the deadline to exercise after leaving the company.
- Size the option pool to cover 18-24 months of planned hiring, since investors expect it in a fundraise. See Kruze’s guides to setting up an option plan and modeling your option pool.
- Model future dilution and the remaining pool before approving each additional grant.
- Balance cash and equity. More cash generally means less equity, and as you raise more capital you can shift packages toward cash. Highly experienced hires often need more cash and may not accept a lower salary in exchange for equity.
- Do not describe a grant’s headline value as guaranteed cash, and do not treat the preferred financing price as the value of employee common stock.
Evaluate equity separately from the salary tables above. A candidate may value potential ownership differently than the company does, and illiquid options do not replace the cash an employee needs to live on.
How does startup equity vesting work?
The most common employee option schedule is four-year vesting with a one-year cliff. Nothing vests during the first year; 25% of the grant vests at the first anniversary, and the rest vests monthly over the next three years. An employee who leaves before the cliff generally has no vested options, though actual rights depend on the grant documents.
For a 4,800-option grant, this schedule vests 1,200 options after one year and 100 options each month for the following 36 months. Vesting is not the same as exercising options or receiving sale proceeds. Some companies, most often for senior hires, add “double-trigger” acceleration: vesting speeds up only if the company is acquired and the employee is then terminated without cause within a set period. See Carta’s stock options guide for more background.
What is the role of a 409A valuation?
A 409A valuation sets the fair market value of a private company’s common stock, which determines the exercise price of employee options. Options intended to qualify for the stock-option exemption from Section 409A generally need an exercise price at least equal to fair market value on the grant date, and getting this wrong can create serious tax problems for employees. An independent 409A valuation is the common way startups support that value, though it is not the only recognized method.
You will need your first valuation before granting options, and you should refresh it at least every 12 months, after raising a new round and after any material event that could change the company’s value. Have the board approve option grants promptly after each hire so a new employee does not end up with a higher exercise price because the company raised money in the meantime. See 409A valuation costs to budget for it. This overview is general information, not legal or tax advice; coordinate valuation timing, board approvals, and grant documents with your legal and valuation advisers.
How do you build a startup compensation plan?
- Define each role’s responsibilities and level before choosing a title or salary band.
- Choose a consistent geographic pay policy for onsite, hybrid, and remote employees.
- Set separate salary, incentive, and equity budgets rather than comparing unlike measures of pay.
- Model each hire’s start date and fully loaded monthly cost in your financial forecast.
- Test the hiring plan against slower revenue growth or a delayed financing round.
- Put the infrastructure in place: use cap table software, keep your 409A valuation current, and work with qualified accountants and attorneys on payroll taxes and equity grants.
- Document approvals, including board approval of option grants, and review compensation as responsibilities, company performance, and market conditions change.
Build a compensation plan that protects your runway
A strong startup compensation plan pairs competitive offers with a realistic cash forecast. Use Kruze’s 2026 CEO salary report and C-suite salary guide for founder and executive pay, the employee benchmarks above for hiring context, and a fully loaded cost model to see how each hire affects your runway.
Ready to turn these benchmarks into a hiring plan?
Contact Kruze Consulting for a free consultation. Our startup accountants and finance team can help you build a financial model that shows how planned hires affect your burn and runway, get your 409A valuation in place before you grant options, and provide fractional CFO support as you grow.
FAQs - Startup Compensation
- What is the average startup CEO salary in 2026?
- How much do startup CTOs and COOs make in 2026?
- How much does a startup software engineer make?
- How much should a startup budget beyond base salary?
- How much equity should the first startup employee get?
- What does OTE mean in startup sales compensation?
- How often should a startup update its 409A valuation?
- Are startup salary benchmarks the same as total compensation?
What is the average startup CEO salary in 2026?
The average venture-backed startup CEO salary in 2026 is $165,000, and the median is $159,000, according to Kruze’s 2026 Startup CEO Salary Report. By stage, CEOs average $153,000 at Seed, $203,000 at Series A and $216,000 at Series B.
How much do startup CTOs and COOs make in 2026?
Both roles average $167,000 in Kruze’s 2026 payroll data. CTOs average $155,000 at Seed, $196,000 at Series A, and $238,000 at Series B, with a median of $166,000. COOs average $144,000, $227,000, and $246,000 at those stages, with a median of $150,000. See the 2026 Startup C-Suite Salary Guide for details.
How much does a startup software engineer make?
Public startup data shows an average expected salary of about $154,000 for software engineers at US-based startups, with a lower-tier average of $110,000, a top-of-market average of $219,000, and a full reported range of $67,000 to $239,000. Machine learning engineers average about $165,000 and full-stack engineers about $127,000.
How much should a startup budget beyond base salary?
Kruze recommends budgeting about 25%-35% above base salary for payroll taxes, insurance, and benefits, plus roughly $2,500-$3,000 per employee in one-time equipment costs. At a 30% load, a $150,000 salary costs about $195,000 a year.
How much equity should the first startup employee get?
Carta data shows the median first engineer at a tech startup receives 1.54% of the company, with the middle half of grants ranging from about 0.61% to roughly 4%. Median grants fall quickly for later hires, and the right amount for any one hire depends on role, experience, and the cash in the offer.
What does OTE mean in startup sales compensation?
OTE stands for on-target earnings. It is base salary plus the variable pay, usually commission, that a salesperson earns by hitting target. Always confirm whether a salary benchmark measures base pay or OTE before using it.
How often should a startup update its 409A valuation?
At least every 12 months, after a new financing, and after any material event that could change the company’s value. Option grants should be priced from a current valuation.
Are startup salary benchmarks the same as total compensation?
No. Salary, commissions, bonuses, benefits and equity are separate components. Confirm what a source includes before comparing it with a candidate’s offer. The employee tables in this guide report expected salary, not a calculated total compensation package.
