COO COMPENSATION IN PE-BACKED COMMERCIAL SERVICES FIRMS
We analysed compensation data from 56 COOs operating within Private Equity-backed Commercial Services businesses across North America.
The data is segmented by revenue size to show how COO compensation, incentive structures, and equity participation evolve as operational scale and complexity increase.
RESPONDENT BREAKDOWN
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36% from firms backed by PE funds under $500M AUM
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34% from firms with $50M–$150M revenue
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30% from firms with over $150M revenue
BASE SALARY
Firms < $50M Revenue
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Lowest: $100,000
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Median: $225,000
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Highest: $300,000
Firms $50M–$150M Revenue
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Lowest: $225,000
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Median: $285,000
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Highest: $375,000
Firms > $150M Revenue
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Lowest: $250,000
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Median: $325,000
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Highest: $500,000
BONUS STRUCTURE
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89% of COOs at firms < $50M receive a bonus of 50% or less
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83% of COOs at firms $50M–$150M receive a bonus of 50% or less
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74% of COOs at firms > $150M receive a bonus of 50% or less
Key insight: Even at scale, COO bonus structures remain tightly capped, reflecting PE’s emphasis on consistent operational delivery rather than high cash variability.
EQUITY & PROFIT PARTICIPATION
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41% of COOs at firms < $50M receive carry or profit/partner share
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55% of COOs at firms $50M–$150M receive carry or profit/partner share
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68% of COOs at firms > $150M receive carry or profit/partner share
Equity participation increases significantly with revenue, aligning COOs with operational leverage, margin expansion, and multi-site integration outcomes.
KEY TAKEAWAYS
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COO base salaries scale predictably with revenue, increasing from a $225K median in sub-$50M firms to $325K in platforms exceeding $150M.
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Bonus structures remain conservative, with the majority of COOs capped at ≤50% bonus targets across all revenue bands.
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Equity becomes a more meaningful component of total compensation as platforms scale, reflecting the COO’s growing role in enterprise value creation.
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Compensation dispersion widens at scale, driven by variation in operational scope across regional, divisional, and enterprise-level COO roles.
Bottom Line
COO compensation in PE-backed Commercial Services firms is execution-driven, equity-aligned, and highly disciplined.
As businesses scale, upside shifts away from variable cash incentives and toward ownership participation tied to operational performance and exit outcomes.
Looking to benchmark COO compensation or hire a proven Commercial Services operating leader for your portfolio company?
Connect with kaj.coffey@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.
