We are pleased to share the findings from our latest PE CEO Trends & Compensation Report. This year’s report includes comprehensive, anonymized data from contacts with over 1,200 CEOs leading private-equity-backed companies, with insights categorized by company size, revenue brackets, and other key factors. Below are some of the noteworthy trends:
CEO Profile and Recruitment: Industry-specific experience remains paramount, with 89% of CEOs recruited from within their sector. Surprisingly, only 43% have prior CEO experience, and just 20% have PE-backed CEO experience, underscoring a preference for specialized industry knowledge over prior PE leadership.
- Compensation Trends: CEO base salaries have remained relatively stable over the past three years, while bonuses are seeing significant movement, with the median CEO bonus now at 100% of base salary. CEOs who recently transitioned into their roles are receiving a 10% increase in cash compensation on average, which rises to 20% for CEOs in companies with over $250 million in revenue.
- Exit and Liquidity Trends: As expected, fewer liquidity events have extended hold times. The average remaining hold period has increased by five months since 2022, bringing the average remaining hold period to approximately 28 months. Additionally, 74% of CEOs believe their next acquirer will be another PE firm rather than a strategic buyer. CEO tenure has increased and exit planning may require a rethinking of CEO demographics and runway.
- Operating Partner Model: Adoption of the Operating Partner model has surged, with 65% of firms now employing these roles, up from 35% two years ago. CEOs within companies utilizing Operating Partners have higher expectations for their performance in 2025 than those that don’t.
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About Vardis: Vardis is a global executive and board search firm dedicated to serving private equity and growth equity firms and their portfolio companies. Our expertise spans executive and board-level placements, as well as pre-deal introductions of advisors and operating executives, providing valuable data to inform strategic hiring decisions.