COO COMPENSATION IN PE-BACKED MANUFACTURING FIRMS

We analysed compensation data from 154 COOs operating within Private Equity-backed Manufacturing businesses across North America.
The data is segmented by revenue size to illustrate how COO compensation, incentive structures, and equity participation evolve as manufacturing platforms scale in operational scope and complexity.

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RESPONDENT BREAKDOWN

• 44% from firms with under $50M revenue

• 31% from firms with $50M–$150M revenue

• 25% from firms with over $150M revenue

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BASE SALARY

Firms < $50M Revenue

• Lowest: $125,000

• Median: $275,000

• Highest: $400,000

Firms $50M–$150M Revenue

• Lowest: $225,000

• Median: $325,000

• Highest: $500,000

Firms > $150M Revenue

• Lowest: $300,000

• Median: $425,000

• Highest: $750,000+

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BONUS STRUCTURE

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

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

• 63% of COOs at firms > $150M receive a bonus of 50% or less

Key insight: While bonus flexibility increases at scale, COO compensation remains disciplined, with PE sponsors favouring equity alignment over high variable cash incentives.

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EQUITY & PROFIT PARTICIPATION

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

• 69% of COOs at firms $50M–$150M receive carry or profit/partner share

• 84% of COOs at firms > $150M receive carry or profit/partner share

Equity participation rises sharply with scale, reflecting the COO’s responsibility for operational leverage, plant performance, margin expansion, integration execution, and scalability.

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KEY TAKEAWAYS

• COO base salaries scale materially with revenue, increasing from a $275K median in sub-$50M manufacturers to $425K in businesses exceeding $150M.

• Bonus structures remain conservative, even in complex manufacturing environments, with most COOs capped at ≤50% bonus targets.

• Equity is the primary driver of long-term upside, particularly in larger platforms where operational execution directly impacts enterprise value.

• Compensation dispersion widens significantly at scale, driven by differences in plant footprint, automation levels, and M&A integration demands.

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Bottom Line

COO compensation in PE-backed Manufacturing firms is execution-led, equity-aligned, and value-creation focused.
As platforms scale, cash compensation grows in a controlled manner, while the most meaningful upside is delivered through ownership participation tied to operational performance and exit outcomes.

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Looking to benchmark COO compensation or hire a proven Manufacturing 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.