2023 Private Equity–Backed Chief Executive Officer Compensation Survey
Welcome to our 2023 Private Equity–Backed Chief Executive Officer Compensation Survey, which gathered data on these leaders’ compensation in countries around the world. Together with our surveys of private equity investment and operating professionals and PE-backed chief financial officers, these reports help to create a comprehensive picture of the compensation that key executives are currently receiving in PE firms and portfolio companies.
For this report, Heidrick & Struggles compiled compensation data from 650 CEOs around the world in a survey fielded in April and May 2023.
We hope you enjoy reading the report and we welcome suggestions, so please feel free to contact us with questions and comments.
CEO compensation: United States
The average base compensation among US CEOs surveyed for this report was $510,000 in 2023, and the average cash bonus received in 2022 was $390,000, for a total average cash compensation of $908,000. By company size, base, bonus, and total cash compensation all rise as revenue does, with total average cash compensation coming in at $1,427,000 at companies with revenue above $500 million. By industry, CEOs in the consumer industry are paid the most, at $1,050,000 in average total cash compensation. By region, respondents in the Northeast reported the highest average total cash compensation: $1,068,000.
Thirty-nine percent of US CEOs indicated that they received no equity in 2023. Among those who did, the average value was 1.5 points. Respondents at technology and services companies reported the highest average long-term equity compensation, at $12,433,000.
Median compensation dipped slightly—from $799,000 in 2021 to $752,000 in 2023. By industry, only respondents at business services and consumer firms saw an increase in median compensation, along with those at firms with revenue of more than $1 billion.
CEO compensation: Europe
The average base compensation among European CEOs surveyed for this report was $447,000 in 2023, and the average cash bonus received in 2022 was $285,000, for a total average cash compensation of $740,000. (Twelve percent of CEOs indicated they received no cash bonus in 2021.) Unlike in the United States, base, bonus, and total cash compensation do not necessarily rise along with company revenue, with respondents at firms with $50 million or less earning more than those at midsize companies.
As in the United States, respondents with smaller teams reported higher compensation. By industry, European respondents in healthcare and life sciences companies saw the highest average total compensation, as well as the highest average long-term equity compensation.
Forty-six percent of European CEOs indicated that they received no equity in 2023. Among those who did, the average value was 0.7 points—lower than the United States’ average of 1.5.
For more, download the full 2023 Private Equity–Backed CEO Compensation Survey report.
About the authors
Jeffrey Sanders (jsanders@heidrick.com) is a vice chairman in the Stamford, New York, and San Francisco offices and co-managing partner of the CEO & Board of Directors Practice.
Stephen Schwanhausser (sschwanhausser@heidrick.com) is the global managing partner of the Consumer Markets and Private Equity practices; he is based in the Stamford office.