Higher Base Pay in Listed Companies

Our analysis shows a distinct shift in how executive cash compensation is structured between listed and private firms.

Public companies place greater weight on fixed salary and annual bonus plans, making cash a more significant component of total pay. This reflects the performance pressure that comes with public markets. Stability in base salary, paired with defined short-term incentives, often supports consistency in executive compensation design.

Equity Carries More Weight in Private Firms

Private companies take a different approach. While base salaries are typically lower, equity accounts for a larger share of total compensation.

Grants are often structured as larger, less frequent awards rather than recurring allocations. The emphasis shifts toward long-term value creation. For executives in growth-stage companies, ownership participation can represent the most meaningful component of total reward.

What This Means for Compensation Strategy

The difference is not about which model is superior. It shows how being public or private leads to different approaches to executive pay.

For boards and compensation committees, the key question is alignment. Does the balance between cash and equity reflect the company’s stage, capital structure, and long-term objectives?

As we continue our Tech Sector Compensation Survey, we are expanding the analysis across roles, pay levels, and market trends. If these questions are already on your agenda, you can read more about the survey and book a session to see how it may apply to your organization.