Startup CEOs in Mexico earn more than their counterparts in the United States, according to the 2023 Salary Study carried out by 500 Global, a venture capital fund for early-stage startups.
The study detailed that in Mexico a CEO receives an average of 4 thousand dollars per month, while in the United States (EU) the figure is 3,500 dollars, since he has greater equity (shareholding) which impacts the salary.
The above, after compiling information from 715 companies in sectors such as Saas, Fintech, EdTech and HealthTech, which shows that for almost all C-Level roles (highest level management positions), salaries in Mexico exceed those in the United States. United States, and other Latin American countries such as: Chile, Colombia, Peru and Argentina.
However, the Chief Revenue Officer (CRO) is an exception, since in the US the average is 5 thousand dollars, while in Mexico it is a little more than 4 thousand 500 dollars.
“Many startup founders and C-Levels find it difficult to assign themselves a salary, as they often wonder if their compensation is aligned with the market.
Countries where C-Levels receive the highest compensations also stand out, such as Brazil, Panama and Chile, in contrast to economies where salaries are lower, such as Argentina, Peru and Colombia,” explains Cecilia Ezquerro, Portfolio Director of 500. Global.
The different C-Levels and Founders roles are key to salary dynamics, the statement exemplifies that Chief Operation Officers (COO) in Mexico earn an average of $2,711, while in the US the amount is slightly lower.
Company stage defines salary
The study highlights the raising of capital and the sectors that have raised the most capital in Mexico, such as: Direct to consumer (42.75 percent), insurtech (14.96 percent) and travel tech (12.82 percent).
The average capital raised in these and other sectors is 1 million dollars, which allows founders to have a compensation margin.
“It is crucial that founders and managers understand what stage their company is in before making decisions about their compensation. If you are in an early phase, with limited capital or still looking for investment, you will probably have to be more conservative with the salary you assign yourself, since it is a priority to allocate resources for the growth of the company,” concluded Ezquerra.
