🎙️ Episode summary:

In this episode, Camiel Selker joins to discuss executive compensation strategies for scale-ups. Learn how to attract and retain top leaders while aligning compensation with company culture and budget. Gain actionable insights on structuring salary, bonuses, and equity packages to incentivize long-term growth and navigate investor expectations.

📖 In this episode:

00:00 Introduction to executive compensation

05:02 Investor perspectives on compensation

07:35 Designing effective compensation packages

11:57 Evolving compensation structures

15:20 Bonuses and performance incentives

19:07 The role of founders in compensation design

21:29 Benchmarking compensation effectively

23:43 Linking compensation to achievements

27:32 The cost of experience

30:05 Equity and internal equity

33:08 Stock options as a reward

36:00 The impact of short-term bonuses

38:09 Common mistakes in compensation design

41:15 Current trends in executive compensation

42:34 Golden rules for founders

💡 Key takeaways:

• Balance founder generosity with investor expectations when structuring early compensation packages.
• Differentiate compensation as the company matures, focusing on internal equity and the value of specific roles.
• Use short-term bonuses cautiously to avoid short-term focus and transactional behavior.
• Document all compensation agreements to avoid future disputes and misunderstandings.
• Design compensation plans with the future in mind, anticipating the need to attract experienced talent at higher salaries.

📌 Resources mentioned:

Index Ventures ESOP Guide

➡️ About us:

People masterminds is a team of former scale-up People & Culture leaders who love working with fast-growing companies. We design what scale (or rightsizing) demands. No slide decks. No theatre. Just sharp minds and deep experience. This podcast is our way of sharing knowledge and experience for free. Want to know more about our other services? Visit our ⁠⁠website⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠ or ⁠⁠contact us⁠⁠ at [email protected]