COO COMPENSATION IN PE-BACKED HVAC SERVICES FIRMS

We analysed compensation data from 24 COOs operating within Private Equity-backed HVAC Services businesses across North America.
The data has been segmented by revenue size to show how COO compensation, bonus structures, and equity participation scale as operating complexity increases.

---

RESPONDENT BREAKDOWN

• 36% from firms backed by PE funds under $500M AUM

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

• 32% from firms with over $150M revenue

---

BASE SALARY

Firms < $50M Revenue

• Lowest: $100,000

• Median: $225,000

• Highest: $315,000

Firms $50M–$150M Revenue

• Lowest: $200,000

• Median: $265,000

• Highest: $375,000

Firms > $150M Revenue

• Lowest: $275,000

• Median: $300,000

• Highest: $400,000

---

BONUS STRUCTURE

• 91% of COOs at firms < $50M receive a bonus of 50% or less

• 89% of COOs at firms $50M–$150M receive a bonus of 50% or less

• 78% of COOs at firms > $150M receive a bonus of 50% or less

Key insight: Variable compensation is tightly controlled across all revenue tiers, with PE sponsors favouring operational execution and predictability over aggressive cash incentives.

---

EQUITY & PROFIT PARTICIPATION

• 57% of COOs at firms < $50M receive carry or profit/partner share

• 61% of COOs at firms $50M–$150M receive carry or profit/partner share

• 69% of COOs at firms > $150M receive carry or profit/partner share

Equity participation becomes increasingly common as firms scale, reflecting the COO’s growing role in operational leverage, margin expansion, and integration execution.

---

KEY TAKEAWAYS

• COO base salaries scale with revenue, increasing from a $225K median in sub-$50M firms to $300K in businesses exceeding $150M.

• Bonus targets are conservative, with the vast majority of COOs capped at ≤50% bonus levels regardless of firm size.

• Equity participation increases with scale, particularly in larger platforms where COOs are critical to value-creation initiatives.

• Compensation dispersion narrows at scale, signalling increased standardisation once platforms reach maturity.

---

Bottom Line

COO compensation in PE-backed HVAC services firms is execution-focused, disciplined, and increasingly equity-aligned.
As revenue and operational complexity increase, upside is delivered less through bonuses and more through ownership participation tied to value creation and exit outcomes.

---

Looking to benchmark COO compensation or hire a proven operating leader for your HVAC portfolio company?
Connect with mohammed.vali@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.