What is the salary range for a searcher operating a company as CEO?

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January 27, 2020

by a searcher in Florida, USA

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Reply by a searcher
from Harvard University in Charlottesville, VA, USA
I believe the Stanford 2018 search fund study has data specifically on this on page 15: https://www.gsb.stanford.edu/gsb-cmis/gsb-cmis-download-auth/469696

Essentially, the mean and median comp was ~$214k and $200k resepctively with bonus ~$60k. I would be careful since the range is pretty broad, is self-reported data, includes traditional searchers, and companies that have been operating for many years. If you are self-funded and/or buying a sub- $3M business, these values would be relatively high. I would say $150k - $250k total comp based on size of company, experience/risk level, and agreement with investors. This should be balanced with the carry you'd receive and cash flow management.

Good luck.
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Reply by a searcher
from Columbia University in Mexico City, CDMX, Mexico
I would say keep it below 10% of EBITDA, but my overall advice is to take as little as possible since that money could be use to invest and grow the business, but at the same time you dont want to take too little that money starts to be an issue in your personal life.
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