CFO COMPENSATION IN PE-BACKED AEROSPACE & DEFENSE FIRMS

We analysed compensation data from 133 CFOs operating within Private Equity-backed Aerospace & Defense businesses across North America.
The data is segmented by revenue size to demonstrate how CFO compensation, incentive structures, and equity participation evolve as platforms scale in regulatory oversight, program complexity, and capital requirements.

---

RESPONDENT BREAKDOWN

• 50% from firms with under $50M revenue

• 32% from firms with $50M–$150M revenue

• 18% from firms with over $150M revenue

---

BASE SALARY

Firms < $50M Revenue

• Lowest: $150,000

• Median: $240,000

• Highest: $375,000

Firms $50M–$150M Revenue

• Lowest: $200,000

• Median: $300,000

• Highest: $425,000

Firms > $150M Revenue

• Lowest: $275,000

• Median: $360,000

• Highest: $550,000+

---

BONUS STRUCTURE

• 78% of CFOs at firms < $50M receive a bonus of 50% or less

• 60% of CFOs at firms $50M–$150M receive a bonus of 50% or less

• 45% of CFOs at firms > $150M receive a bonus of 50% or less

Key insight: As revenue increases, bonus structures become more aggressive. In larger Aerospace & Defense platforms, CFOs are more likely to exceed 50% bonus thresholds compared to other industrial sectors.

---

EQUITY & PROFIT PARTICIPATION

• 65% of CFOs at firms < $50M receive carry or profit/partner share

• 72% of CFOs at firms $50M–$150M receive carry or profit/partner share

• 80% of CFOs at firms > $150M receive carry or profit/partner share

Equity participation is widespread and increases with scale, reflecting the CFO’s role in government contract compliance, margin optimisation, debt structuring, and exit preparation.

---

KEY TAKEAWAYS

• Median base salary scales steadily, rising from $240K in sub-$50M firms to $360K in businesses exceeding $150M.

• Top-end compensation is materially higher at scale, reaching $550K+ in larger platforms.

• Bonus structures are more performance-leveraged than other manufacturing verticals, particularly in mid-market and larger firms.

• Equity participation is common across all tiers, reinforcing strong alignment with long-term value creation.

---

Bottom Line

CFO compensation in PE-backed Aerospace & Defense firms reflects the sector’s regulatory intensity, contract complexity, and capital demands.
While base salaries increase with scale, meaningful upside is driven by performance-based bonus structures and carry participation tied to EBITDA growth and exit outcomes.

---

Looking to benchmark CFO compensation or hire an Aerospace & Defense finance 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.