The Components of Executive Compensation
Executive compensation at the VP and C-suite level is a package, not a number. Candidates evaluate the totality of base salary, equity, variable compensation, and the financial risk/reward balance of joining at a given stage. Getting any one of these wrong — especially when the equity narrative is unclear — can lose a well-engaged candidate at the offer stage.
Typical VP Compensation Structure (Series A-B, 2026)
How to Structure the Package
Research the market rate, not the aspirational rate
Use multiple sources: Levels.fyi for engineering roles, OpenComp or Radford surveys for all functions, and direct conversations with the search firm about recent placements in your geography and sector. Market rates shift quickly. Data from 2023 may not reflect 2026 realities in AI-adjacent roles especially.
Calibrate equity to stage and dilution reality
A 0.5% equity grant at a $10M valuation is worth $50K. At a $100M valuation it's worth $500K. The same grant percentage means very different things depending on stage. Be transparent about your current cap table, recent round valuation, and the dilution trajectory. Candidates who understand the math will make better decisions — and better decisions stick.
Set variable comp with clear criteria
VP Sales bonus plans should be tied to quota attainment with clear ramp periods. Other VP bonus plans should be tied to specific, measurable outcomes — not vague "company performance." Ambiguous bonus criteria create disappointment and reduce the effectiveness of variable comp as a retention tool.
Account for what they're leaving
A candidate with 18 months of unvested equity at their current company is making a financial sacrifice by joining you. This is negotiable territory — signing bonuses, accelerated vesting, or enhanced equity grants can bridge the gap. The question to ask is: what does a fair deal look like given what they're walking away from?
See: Executive Compensation Report 2026 | Equity Narrative | Counter-Offer Management
"41 days. A $275K search. Two firms failed in 60+ days. That's not luck -- that's a different system."
-- Majhi Group placement record. Read the full process anatomy