Competing For & Compensating Talent There is a wide variance in the level of average founder compensation at every funding round There is a wide variance in the level of average founder compensation at every funding round stage between stage between Europe and the US, both in terms of base salary and incentive pay. Europe and the US, both in terms of base salary and incentive pay 400,000 Founder base salary and incentives by Funding Round stage in 50th percentile by region 300,000 LEGEND Base Salary D S 200,000 Incentive Pay U Note: Incentive pay is cash bonus or incentive, which is not related to equity or equity value. 100,000 0 Europe US Europe US Europe US Europe US Seed Series A Series B Series C Source: While there are differences in average pay between European and US founders, the average While there are differences in average pay between European and US founders, the average level of founder equity level of founder equity by funding round stage is closely aligned from Series A onwards. by funding round stage is closely aligned from Series A onwards Founder equity by funding round stage in 50th percentile by region 34% 30 29% LEGEND Europe y t i US qu e r e 20 19% 19% d n u o f f o 13% % 12% 13% 10% 10 0 Seed Funding Only Post Series A Post Series B Post Series C Note: Advanced-HR’s compensation report details founder’s cash and equity pay as reported by participating private, venture- Source: backed companies. Equity data is displayed as a percentage of European tech companies have historically either chosen not to use or have not been fully diluted shares. Equity not related to salary nor incentives. able to use stock options as an incentive tool for employees in the same way as has been standard in the US Advanced-HR’s latest data suggests that there is positive change afoot in Europe. Based on their latest employee ownership report, the average level of employee The average level of employee ownership by funding round ownership by funding round stage in Europe is broadly in line with levels in the US. stage is broadly similar in Europe compared to the US Employee ownership by funding round stage 20.0 in 50th percentile by region LEGEND 15.0 Executives p i h s Staff + Other r e wn10.0 Unissued o f o % Note: This details equity held by executive-level employees, staff- level employees and remaining unissued options. It excludes 5.0 Founder’s Shares and equity allocations displayed as a percentage of fully diluted shares. Equity not related to salary nor incentives 0.0 Europe US Europe US Europe US Europe US Seed Series A Series B Series C Source: & 55 In Partnership with www.thestateofeuropeantech.com