CEO COMPENSATION IN PE-BACKED AEROSPACE & DEFENSE FIRMS

We analysed compensation data from 149 CEOs operating within Private Equity-backed Aerospace & Defense businesses across North America.
The data is segmented by revenue size to demonstrate how CEO compensation, incentive structures, and equity participation evolve as platforms scale in regulatory complexity, contract depth, and operational footprint.

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RESPONDENT BREAKDOWN

• 45% from firms with under $50M revenue

• 35% from firms with $50M–$150M revenue

• 20% from firms with over $150M revenue

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BASE SALARY

Firms < $50M Revenue

• Lowest: $175,000

• Median: $275,000

• Highest: $425,000

Firms $50M–$150M Revenue

• Lowest: $250,000

• Median: $350,000

• Highest: $550,000

Firms > $150M Revenue

• Lowest: $350,000

• Median: $475,000

• Highest: $750,000+

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BONUS STRUCTURE

• 45% of CEOs at firms < $50M receive a bonus of 50% or less

• 35% of CEOs at firms $50M–$150M receive a bonus of 50% or less

• 25% of CEOs at firms > $150M receive a bonus of 50% or less

Key insight: Unlike other industrial verticals, Aerospace & Defense CEOs are more likely to have bonus targets exceeding 50%, particularly as revenue and contract complexity increase.

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EQUITY & PROFIT PARTICIPATION

• 75% of CEOs at firms < $50M receive carry or profit/partner share

• 80% of CEOs at firms $50M–$150M receive carry or profit/partner share

• 90% of CEOs at firms > $150M receive carry or profit/partner share

Equity participation is widespread across all tiers, reflecting the importance of long-term contract execution, margin expansion, and strategic positioning ahead of exit.

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KEY TAKEAWAYS

• Base salary scales meaningfully with revenue, with median compensation rising from $275K in sub-$50M firms to $475K in businesses exceeding $150M.

• Top-end compensation is materially higher than other manufacturing verticals, reaching $750K+ at scale.

• Bonus structures are more aggressive, particularly in mid-market and larger platforms.

• Equity participation is highly prevalent across all revenue tiers, making carry the primary wealth creation lever for Aerospace & Defense CEOs.

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Bottom Line

CEO compensation in PE-backed Aerospace & Defense firms is structured for scale and complexity.
Cash compensation increases materially with revenue, but the most significant upside is driven by equity alignment tied to EBITDA growth, contract execution, and exit performance.

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Looking to benchmark CEO compensation or hire an Aerospace & Defense leader for your portfolio company?
Connect with jack.burns@raw-selection.com

Raw Selection | De-Risking Executive Search for Private Equity firms across Europe & North America

All insights in this salary report are derived from Raw Selection’s proprietary data.