When you reach the executive level, salary becomes more than just a number — it’s part of a larger, more complex compensation structure. From bonuses to equity to long-term incentives, understanding what goes into an executive salary is key to knowing your market value and negotiating effectively.

Here’s what executives typically earn, what’s included in their compensation, and how to negotiate your executive pay package with confidence.

What Is an Executive Salary?

An executive salary refers to the total income earned by individuals in senior leadership roles — typically VP-level and above. It includes:

  • Base salary (guaranteed annual income)
  • Bonuses (performance-based cash)
  • Equity (stock options, RSUs, etc.)
  • Long-term incentives (multi-year payouts)
  • Benefits and perks (retirement, health, travel, etc.)

While salary is important, many executives make most of their money through bonuses and equity.

Average Executive Salaries by Role

Here’s a rough breakdown of average U.S. executive base salaries in 2025, excluding bonuses and stock:

Role

Average Base Salary
CEO $350,000–$1M+
CFO $275,000–$600,000
COO $250,000–$500,000
CTO / CIO $220,000–$400,000
CMO / CRO $200,000–$450,000
VP-Level Roles $180,000–$300,000
Director-Level $140,000–$220,000

Note: Total compensation can be 2–5x higher when equity and bonuses are included, especially in public or venture-backed companies.

What Else Is Included in Executive Pay?

1. Performance Bonuses

Tied to individual, team, or company goals. These often range from 20% to 100%+ of your base salary and may include:

  • Revenue targets
  • EBITDA or profit margins
  • Strategic milestones
  • Department KPIs

2. Equity Compensation

This is where many executives build wealth. Common forms include:

  • Stock options (buy shares at a set price later)
  • Restricted Stock Units (RSUs) (vest over time)
  • Performance shares (tied to results like stock price or revenue growth)

The value can be significant — especially in startups or IPO-ready companies.

3. Long-Term Incentive Plans (LTIPs)

These are multi-year bonuses designed to reward sustained leadership:

  • Paid in cash or stock
  • Vest over 3–5 years
  • Often tied to major goals like market expansion or M&A

4. Executive Benefits and Perks

These often go beyond standard employee packages:

  • Enhanced retirement plans
  • Deferred compensation options
  • Health and wellness stipends
  • Executive coaching or leadership training
  • Company car, housing allowance, or travel upgrades

Factors That Impact Executive Salary

Several variables influence how much an executive earns:

  • Company size & stage: Public companies and late-stage startups pay more. Early-stage startups may offer lower salaries but more equity.
  • Industry: Finance, tech, and biotech pay higher than nonprofits or government.
  • Role scope: Leading a global team or overseeing multiple departments raises pay.
  • Location: New York, San Francisco, and global HQs typically pay more.
  • Experience & track record: Proven success in scaling, turnarounds, or exits can boost offers.

How to Research Executive Salary Data

Before negotiating, understand the market using tools like:

  • Salary.com Executive Pay Reports
  • Levels.fyi (great for tech roles)
  • Glassdoor / Comparably (for peer-reported data)
  • SEC Filings (EDGAR) — for public company executive pay disclosures
  • Compensation benchmarking firms (e.g., Radford, Equilar)

You can also ask executive recruiters or consultants who know your industry.

How to Negotiate an Executive Salary

1. Know Your Total Market Value

Look at base + bonus + equity + perks, not just the salary number. A lower base with high equity could outperform a high base long-term.

2. Anchor to Business Value

Frame your ask around impact:

“In my previous role, I increased revenue by $30M. I’m looking for a package that reflects my ability to drive that kind of growth again.”

3. Be Ready to Talk Equity

If equity is part of the package:

  • Ask for vesting schedules
  • Understand your strike price and tax implications
  • Ask for a scenario table showing future value

4. Don’t Forget Severance and Exit Terms

A smart negotiation includes:

  • 6–18 months of severance
  • Equity acceleration on termination
  • Health benefits continuation
  • Non-compete and non-solicit review

5. Stay Collaborative

Executive negotiations aren’t adversarial — they’re strategic. Express excitement, flexibility, and focus on long-term fit.

Executive Salary Trends in 2025

Some notable shifts this year:

  • More equity-heavy packages in startups to conserve cash
  • Hybrid/remote leaders earning competitive salaries across regions
  • Expanded wellness benefits and mental health perks
  • Increased transparency in public company pay (due to regulation and social pressure)
  • Retention bonuses for key executives amid talent shortages

Final Thoughts

Your executive salary reflects more than your title — it reflects your ability to drive business value. Understanding what’s included, how it’s structured, and how to negotiate can dramatically improve your career satisfaction and financial outcome.

Whether you’re reviewing an offer or planning your next move, knowing your worth is key to earning what you’re truly worth.