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The Hidden Cost of Underpaying Your CEO: What Capital-Efficient Series B Companies Get Wrong About Executive Compensation
Kraig Ward Kraig Ward

The Hidden Cost of Underpaying Your CEO: What Capital-Efficient Series B Companies Get Wrong About Executive Compensation

Series B CEO compensation is not broken. It is misaligned. After benchmarking CEO pay across Series B companies and pressure-testing it against real board dynamics and operator behavior, a clear pattern emerges. Many companies are anchoring CEO compensation to earlier-stage norms while expecting enterprise-grade execution. Capital efficiency has become a rationale for restraint, when in reality it should create leverage. By Series B, the CEO role shifts from survival to orchestration: building a senior team, managing complexity, and translating strategy into repeatable execution. Underpricing that role quietly filters out the leaders most capable of taking a company to $100M-plus. The signal is subtle but decisive. Top-tier operators disengage early. Executive hiring slows. Decision cycles stretch. Not because the business is weak, but because leadership leverage is capped. CEO compensation is not a cost decision. It is a positioning decision. When aligned correctly, everything downstream moves faster. When it is not, execution friction compounds at the exact moment speed matters most.

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