COO COMPENSATION IN PE-BACKED BUILDING PRODUCTS FIRMS

We analysed compensation data from 21 COOs operating within Private Equity-backed Building Products businesses across North America.
The data is segmented by revenue size to illustrate how COO compensation, incentive structures, and equity participation evolve as operational scale and manufacturing complexity increase.

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RESPONDENT BREAKDOWN

• 32% from firms with under $50M revenue

• 47% from firms with $50M–$150M revenue

• 21% from firms with over $150M revenue

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BASE SALARY

Firms < $50M Revenue

• Lowest: $185,000

• Median: $270,000

• Highest: $300,000

Firms $50M–$150M Revenue

• Lowest: $245,000

• Median: $300,000

• Highest: $360,000

Firms > $150M Revenue

• Lowest: $270,000

• Median: $360,000

• Highest: $400,000

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BONUS STRUCTURE

• 89% of COOs at firms < $50M receive a bonus of 50% or less

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

• 70% of COOs at firms > $150M receive a bonus of 50% or less

Key insight: Bonus structures remain tightly capped across revenue tiers, with PE sponsors prioritising disciplined operational execution over aggressive short-term cash incentives.

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EQUITY & PROFIT PARTICIPATION

• 48% of COOs at firms < $50M receive carry or profit/partner share

• 68% of COOs at firms $50M–$150M receive carry or profit/partner share

• 74% of COOs at firms > $150M receive carry or profit/partner share

Equity participation increases meaningfully with scale, reflecting the COO’s role in plant performance, margin expansion, supply chain optimisation, and integration execution.

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KEY TAKEAWAYS

• COO base salaries scale steadily with revenue, increasing from a $270K median in sub-$50M firms to $360K in businesses exceeding $150M.

• Bonus targets remain conservative, with most COOs capped at ≤50% bonus levels.

• Equity participation becomes more common at scale, aligning operating leadership with long-term value creation.

• Compensation dispersion narrows at higher revenue tiers, indicating greater pay standardisation in mature platforms.

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Bottom Line

COO compensation in PE-backed Building Products firms is execution-driven, disciplined, and increasingly equity-aligned.
As platforms scale, base compensation grows in a measured way, while meaningful upside is delivered through carry participation tied to operational performance and exit outcomes.

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Looking to benchmark COO compensation or hire a proven Building Products operating leader for your portfolio company?
Connect with alex.rawlings@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.