COO COMPENSATION IN PE-BACKED MACHINED COMPONENTS FIRMS

We analysed compensation data from 91 COOs operating within Private Equity-backed Machined Components 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, plant footprint, and supply chain complexity increase.

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RESPONDENT BREAKDOWN

• 44% from firms with under $50M revenue

• 37% from firms with $50M–$150M revenue

• 19% from firms with over $150M revenue

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BASE SALARY

Firms < $50M Revenue

• Lowest: $145,000

• Median: $225,000

• Highest: $300,000

Firms $50M–$150M Revenue

• Lowest: $180,000

• Median: $275,000

• Highest: $400,000

Firms > $150M Revenue

• Lowest: $270,000

• Median: $350,000

• Highest: $500,000+

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BONUS STRUCTURE

• 86% of COOs at firms < $50M receive a bonus of 50% or less

• 79% of COOs at firms $50M–$150M receive a bonus of 50% or less

• 72% of COOs at firms > $150M receive a bonus of 50% or less

Key insight: As with other manufacturing verticals, cash bonuses remain disciplined, with upside more commonly driven through equity rather than aggressive annual bonus structures.

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EQUITY & PROFIT PARTICIPATION

• 38% of COOs at firms < $50M receive carry or profit/partner share

• 67% of COOs at firms $50M–$150M receive carry or profit/partner share

• 81% of COOs at firms > $150M receive carry or profit/partner share

Equity participation increases significantly with scale, reflecting the COO’s direct impact on throughput, plant efficiency, margin improvement, and integration of bolt-on acquisitions.

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KEY TAKEAWAYS

• Median base salary scales predictably with revenue, rising from $225K in sub-$50M platforms to $350K in businesses exceeding $150M.

• Top-end compensation expands meaningfully at scale, reaching $500K+ in larger platforms.

• Bonus structures remain conservative, with the majority capped at ≤50%.

• Equity participation accelerates sharply in larger platforms, reinforcing long-term operational value creation alignment.

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Bottom Line

COO compensation in PE-backed Machined Components firms is execution-driven, capital-efficient, and increasingly equity-aligned at scale.
As businesses grow in size and operational complexity, meaningful upside shifts from salary and bonus toward carry participation tied to EBITDA expansion and exit performance.

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All insights in this salary report are derived from Raw Selection’s proprietary data.