​Private Equity and Venture Capital Firms Battle for Top CEOs

CEO Compensation to Rise Over 20% in 2020; PE Firms Land the Best CEOs, almost 3 to 1

According to a joint study by the search firm Jeff Christian Partners and PE firm Talent Equity Capital, CEO compensation of private equity and venture capital firms will rise over 20% in 2020 over 2019. This is according to a study that included over 100 interviews with PE/VC partners, CEOs and CEO candidates on compensation, conducted over the first 11 months of 2019. 

“We are seeing fierce competition for the very best CEO talent between venture capital and private equity firms that continue to realize whoever has the best talent wins,” states Jeff Christian, CEO of Jeff Christian Partners. 

“With venture capital beginning the year with $400 billion in dry powder to invest (NVCA) and private equity with over $2 trillion (Bain & Company), private equity firms will generally win out over VC firms for the very best CEO talent,” Christian continues. 

However, the study also recognizes that the trend in the number of super-sized VC rounds of $1 billion or more (25 in 2018, McKinsey) will likely continue in 2020 and contribute to the projected +20% increase in VC- and PE-backed CEO compensation. 

Of the more than 50 top CEOs and CEO candidates interviewed during the study, 72% were interested in joining PE-backed companies versus 28% attracted to VC-backed firms. 

Those more interested in PE-backed companies saw much greater opportunities to monetize their equity in a shorter period of time. 

According to Jeff Christian Partners, the hottest PE-backed consolidation plays attract the greatest number of extraordinary CEOs because they can monetize within three to seven years. 

Jeff Christian Partners is the world leader in talent equity search, combining extraordinary leadership, market intel and capital in the building of great companies. 

Jeff Christian is the author of "The Headhunters Edge" and founder of Christian and Timbers and has been named for four years on the Forbes Midas List. A frequent guest on CNBC, Christian is the recognized leader in search, having completed the first CEO search for HP and Steve Jobs' last two board searches and finding CEOs for F5 Networks and Upwork.

Media Contact:
Jeff Christian
216-583-4603
Jeff@jeffchristian.co

Source: Jeff Christian Partners