Eating noodles as a founder isn’t a badge of honour.
 I sacrificed compensation for too long.

For many founders and CEOs, the assumption is that equity alone is enough.  After two decades building, investing in, and advising high-growth businesses, I’ve seen the same issue time and again: misaligned CEO compensation that fuels burnout, not business outcomes.

Your Board doesn’t want your pay to become a boat anchor, but they’ll almost always support packages tied to performance. The key is to design a structure to balance short-term resilience with long-term value creation.

This is a smarter way to compensate a CEO, without touching equity, and one that drives growth, retention and founder sustainability.

Why Not Just Equity?

If you’re a founder/CEO, chances are you already have a decent equity stake. That’s your long-term upside.

But startups don’t fail because they lack long-term incentives. They fail because the short-term becomes unsustainable.

This approach isn’t a replacement for equity. It’s a bridge between now and the exit – protecting your health, cash flow and performance along the way.

Done right, this model will:

  • Boost personal cash flow
  • Improve energy and output
  • Increase the odds of actually realising that equity one day

Want to renegotiate your equity?

Do it during your next funding round. Different conversation, different timing.

A 4-Part CEO Pay Framework

Here’s how to structure a CEO compensation package that aligns the interests of the business and its leadership, with minimal friction and maximum performance.

1. Base Salary (Aligned to Stage)

Your base salary should track your company’s maturity. That keeps things lean early and rewards progress as you scale.

Indicative Ranges:

  • < £1M revenue: £80K
  • £1M–£5M: £100K
  • £5M–£10M: £120K
  • £10M–£50M: £140K
  • £50M–£100M: £160K+

(Adjust slightly by region or sector as needed.)

The goal here is simple: Conserve cash early – scale salary as you grow.

2. Variable Compensation (Up to 100% of Base)

This part is all about outcomes, not effort.

You should be able to double your base pay by hitting core company goals.

Structure:

  • Define no more than 3 key goals
  • Align with company-wide metrics
  • Get Board buy-in in advance

Payout model:

  • <70% target achieved → £0 bonus
  • 70%–100% → pro-rated bonus
  • 100% → uncapped upside

This reinforces focus on real, measurable progress, not vanity metrics.

3. Stretch Goals (25–50% of Base)

These are game-changer targets, the sort of strategic initiatives only a CEO can deliver.

They sit above standard KPIs and are typically aligned with forward-looking Board priorities.

Examples:

  • Raise a new funding round at a higher valuation
  • Personally close a key customer or partnership
  • Open a new market or launch a major strategic initiative

Limit it to 3 goals. These should feel like “make-or-break” moves, not business as usual.

4. Self-Care Package (Yes, Really)

This is the one most founders skip, and most boards forget.

But if you’re serious about performance, invest in the leader, not just the company.

Professional athletes have strength coaches, diet plans and recovery routines. So why wouldn’t the CEO?

The best leadership decision you can make might be investing in your energy.

Ask your board to support:

– A nutritionist

– A personal trainer

– Monthly wellness stipend

£800–£4,000 per month is a sensible range, depending on business size and performance.

Has your Board ever considered this before? Educate them. It’s a performance play, not a perk.

Putting It All Together

When bundled properly, this framework creates a CEO comp plan that’s motivating, measurable, and aligned.

  • Base: Stable, scaled with revenue
  • Variable: Results-driven upside
  • Stretch: Strategic growth levers
  • Self-Care: Investment in leadership durability

Example Breakdown:

– Base: £60K

– Variable: £60K             

– Stretch: £30K

– Self-Care: £10K

→ Total: £160K (on performance)

If a board pushes back on this? Consider it a sign they may not be thinking about performance in a modern, founder-aligned way.

Final Word

This model isn’t about overpaying. It’s about paying smartly to drive growth, resilience, and retention.

When you align incentives across performance, strategic goals, and personal sustainability, you build a CEO role that lasts – and delivers.

So if you’re a founder still clinging to “noodle salaries” as a badge of honour… maybe it’s time to retire the badge.