How much should a searcher take as salary during the search?

August 03, 2021

by a searcher from IE Business School in Cambridge, UK

I think this is a point that isn't discussed enough and more data/info here for prospective searchers would be helpful. Knowing what you're getting into financially is important.

Investors and searchers - how much do you think is an appropriate amount?

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Reply by an investor
from WU Vienna University of Economics and Business in Vienna, Austria

In Europe we are seeing €50-85k, depending on the country, previous job and personal circumstances. You have to strike a balance between covering your expenses (especially if you have to provide for a family) and showing that you are seriously committed to the search, so a significant pay cut is expected IMO. The upside is that in 1-2 years you get around 10% of a company worth X million at closing without contributing any of the equity, if your search is successful. In most cases this is a big multiple of the pay cut taken during the search, making it a win-win situation for both the investors and the searcher.

Reply by a searcher
from Harvard University in Piedmont, CA, USA

All recent PPMs I've reviewed have been around $125k. Seems like the big thing investors are looking for is that you're hungry and tight during the search phase. The salary should feel like a bit of a pinch and below what you're capable of earning in the W-2 world.

I'm doing this later in life (I'm 43) and asked for more than usual and it has been OK. However, I was sure to communicate that although the my salary was way above average for a post-MBA searcher, it was still really tight for me given my commitments (mortgage, kids, etc).

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