CEO COMPENSATION IN PE-BACKED MACHINED COMPONENTS FIRMS

We analysed compensation data from 113 CEOs operating within Private Equity-backed Machined Components 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 operational complexity and capital intensity.

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RESPONDENT BREAKDOWN

• 35% from firms with under $50M revenue

• 42% from firms with $50M–$150M revenue

• 23% from firms with over $150M revenue

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BASE SALARY

Firms < $50M Revenue

• Lowest: $175,000

• Median: $300,000

• Highest: $350,000

Firms $50M–$150M Revenue

• Lowest: $275,000

• Median: $375,000

• Highest: $450,000

Firms > $150M Revenue

• Lowest: $350,000

• Median: $425,000

• Highest: $585,000+

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BONUS STRUCTURE

• 88% of CEOs at firms < $50M receive a bonus of 50% or less

• 76% of CEOs at firms $50M–$150M receive a bonus of 50% or less

• 69% of CEOs at firms > $150M receive a bonus of 50% or less

Key insight: Bonus targets remain disciplined across revenue tiers, with the majority of CEO upside tied more heavily to equity value creation than aggressive annual cash bonuses.

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EQUITY & PROFIT PARTICIPATION

• 64% of CEOs at firms < $50M receive carry or profit/partner share

• 78% of CEOs at firms $50M–$150M receive carry or profit/partner share

• 83% of CEOs at firms > $150M receive carry or profit/partner share

Equity participation increases meaningfully at scale, reinforcing the CEO’s alignment with multiple expansion, EBITDA growth, operational optimisation, and exit preparation.

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KEY TAKEAWAYS

• CEO base salaries scale predictably with revenue, rising from a $300K median in sub-$50M firms to $425K in businesses exceeding $150M.

• Cash bonuses remain conservative, with most CEOs capped at ≤50% bonus levels.

• Equity participation is common and increases at scale, making carry the primary wealth creation lever.

• The compensation spread widens significantly at the top end, reflecting complexity in multi-plant, diversified, or aerospace/defence-aligned machining platforms.

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Bottom Line

CEO compensation in PE-backed Machined Components firms is disciplined on cash, aggressive on equity alignment.
As revenue and operational complexity increase, base compensation grows moderately, while the real upside sits in carry participation tied to exit performance.

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Looking to benchmark CEO compensation or hire a Machined Components 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.