PE CFO Compensation
Currently in LMM PE and have been planning to pursue a CFO route following my 2 year program. Looking at our CFO compensation across our portfolio, the compensation is a bit underwhelming (it's a lot of money but it's still less than I expected), so I am wondering how it scales with MMPE and UMMPE funds. Compensation for a typical CFO in our portfolio is:
Target Cash Bonus: $60-$80k
All-in cash comp: $280k-$310k
Equity (this is a bit tricky): 1.0-1.5% options when fully vested
Option vesting is contingent on CoC hurdles, but assuming a 4.0x CoC on a $50mm equity check you'd be getting $1.5mm-$2.2mm at exit for a great outcome. 3.0x CoC would be $500k-$750k at exit for a very good outcome (this assumes only half of the options vest at 3.0x). Anything less than 3.0x CoC and your payday starts to look like your annual cash comp or less.
Plenty of nuances to this such as COL, years of experience, do they hit their budget every year, strike price for new hires added during hold period, etc.
Would love to see this info for larger PE funds.