COO COMPENSATION IN PE-BACKED AEROSPACE & DEFENSE FIRMS

We analysed compensation data from 52 COOs operating within Private Equity-backed Aerospace & Defense businesses across North America.
The data is segmented by revenue size to illustrate how COO compensation, incentive structures, and equity participation evolve as operational complexity, regulatory requirements, and program scale increase.

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RESPONDENT BREAKDOWN

• 46% from firms with under $50M revenue

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

• 19% from firms with over $150M revenue

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BASE SALARY

Firms < $50M Revenue

• Lowest: $185,000

• Median: $300,000

• Highest: $400,000

Firms $50M–$150M Revenue

• Lowest: $220,000

• Median: $325,000

• Highest: $520,000

Firms > $150M Revenue

• Lowest: $300,000

• Median: $420,000

• Highest: $600,000+

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BONUS STRUCTURE

• 75% of COOs at firms < $50M receive a bonus of 50% or less

• 65% of COOs at firms $50M–$150M receive a bonus of 50% or less

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

Key insight: Bonus structures become progressively more performance-leveraged at scale, with larger Aerospace & Defense platforms more likely to exceed 50% bonus thresholds compared to smaller firms.

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EQUITY & PROFIT PARTICIPATION

• 60% of COOs at firms < $50M receive carry or profit/partner share

• 62% of COOs at firms $50M–$150M receive carry or profit/partner share

• 70% of COOs at firms > $150M receive carry or profit/partner share

Equity participation is common across all tiers, reflecting the COO’s direct impact on operational throughput, quality control, compliance, supply chain resilience, and integration execution.

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KEY TAKEAWAYS

• Median base salary scales materially with revenue, rising from $300K in sub-$50M platforms to $420K in businesses exceeding $150M.

• Top-end compensation expands significantly at scale, reaching $600K+ in larger platforms.

• Bonus structures are more aggressive than traditional industrial sectors, particularly at higher revenue tiers.

• Equity alignment remains strong across all tiers, reinforcing long-term value creation over purely cash-driven compensation.

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Bottom Line

COO compensation in PE-backed Aerospace & Defense firms reflects the sector’s operational intensity and regulatory complexity.
As businesses scale, base compensation increases meaningfully, while upside is increasingly driven by performance-based bonus structures and carry participation tied to EBITDA expansion and exit outcomes.

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Looking to benchmark COO compensation or hire an Aerospace & Defense operating 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.