The chief operating officer (COO) is a critical yet frequently misunderstood function among a company’s C-suite executives. The COO has a substantial impact on an organization’s everyday operations as a critical member of its executive team. If you’re interested in business operations, the position of COO could be ideal for you. We’ll explain the salary of a COO, within any industry including a hospital, small company, or non-profit, and their duties, and explore the qualifications and skills you need to tackle this essential business role in any location including NYC among others.
What is a COO?
You’re not alone in wondering what a COO is. Almost everyone in business has asked themselves this question at some point. The truth is that answering this question is difficult. People are confused about what a COO does and how it fits in. The function of the COO is frequently misunderstood and devalued.
Here are some important considerations for COOs:
- A COO is second in command: A COO is second in leadership and is sometimes referred to as “vice president of operations.” They are a senior executive who oversees the day-to-day operations of a company. Because “operations” comprises nearly everything a company does.
- COOs execute a CEO’s vision: COOs carry out the vision of the CEO: While the CEO is the company’s brain, the COO is in its hands. The CEO determines an organization’s long-term strategy and feasible business goals. The COO, on the other hand, executes those goals by breaking them down into daily tactical decisions and activities.
A COO is the driving force behind a successful brand, and COOs are constantly looking for methods to systemize and simplify the brand.
What Exactly Does a COO Do?
Because organizations and sectors differ, each COO has unique responsibilities. COOs typically perform the following duties:
- COOs are the CEO’s right-hand man or woman: In general, the COO is the CEO’s right-hand man. [COOs] lead and oversee the day-to-day operations of the company to ensure continual process improvement.
- COOs bring the CEO’s vision to life: The COO is responsible for developing the procedures that will allow my sales manager, support manager, and tech manager to carry out our CEO’s vision. The COO’s responsibility is to find answers and incorporate them into daily procedures in order to keep the company expanding.
- COOs work with other C-suite executives: COOs collaborate with other C-suite executives, such as the chief financial officer (CFO) and chief technology officer (CTO), to ensure that all divisions support the company’s objectives as stated by executives and the board of directors.
- COOs manage other executives and managers: The COO reports to the CEO, but everyone else reports to the COO, including mid-level managers such as sales managers, marketing managers, product managers, and other C-level executives such as the CFO and the CTO.
- COOs handle the “nuts and bolts” of a company: COOs manage the “nuts and bolts” of a firm and leave the creative aspects to the CEO. It requires a lot of faith in both sides to recognize that they each have skills and flaws and that they complement one another.
What are the Salary Expectations for a COO?
When looking for a COO, you must pay what the market asks. COOs expect to be well compensated as C-level executives with a wide variety of duties. They are visionary leaders in charge of budgets and possibly other executives for their company.
The finest COOs must have a diverse set of functional skills and competencies, which often exceed those of the CEO. A typical day in the life of a COO comprises oversight of accounting and finance, human resources, legal and compliance, information technology, and other areas. They should also have experience with diverse managerial skills, such as team management and project leadership.
A COO may have an MBA, however, this is not a prerequisite. They’re just as likely to have an accounting bachelor’s degree. Their experience is far more essential than their degree.
The Average COO Salary
Although COOs have many responsibilities and must have a wide range of talents, they are frequently rewarded well for their efforts. The salary of a COO can be described as variable. This is due to the fact that a COO of a small company might earn a larger salary than a COO of a hospital or even a non-profit organization. As a result of these different businesses, estimating the salary of a COO may be difficult. However, keeping this in mind, we have established a suitable salary range for them.
A COO’s salary is determined by a variety of criteria, including:
- Industry
- Company age
- Experience
- Length of tenure
- Salary history
The typical COO base salary is $477,665 per year, plus bonuses of $194,869 per year. Before bonuses, a COO’s salary might range between $274,886 and $748,011. For instance, the average salary of a CEO and CFO is $818,745 and $426,918 per year, respectively. Salary ranges can vary significantly depending on a variety of factors, including schooling, certifications, supplementary talents, and the number of years you have worked in your field.
How Much Salary Does a COO of a Small Company Make?
A COO’s salary for a startup or small company is determined by a variety of circumstances, making it impossible to provide a “one size fits all” solution. The following factors may have an impact on the salary of a startup COO:
- Years of experience: Seasoned COOs are likely to expect a greater salary than those taking on the post for the first time.
- Cost of living: A COO in a high-cost-of-living city (Silicon Valley, NYC, London, etc.) will require a larger salary as compensation.
- Funding: Because late-stage firms have more cash to spend than early-stage startups, they may pay higher salaries.
- Equity: As we’ll see later, COOs may choose to take a lower salary in return for a larger part of the company.
The typical small company COO salary in the United States is more than $122,000 per year, according to ZipRecruiter. This value, however, is subject to considerable variation. COO wages were $69,000 at the 25th percentile, $159,000 at the 75th percentile, and $216,000 at the 90th percentile.
Looking across the pond, the startup news website Sifted compiled a salary poll of COOs in the United Kingdom. Non-cofounder COOs at seed-stage firms receive an average salary of £94,500 ($128,000 USD as of writing), while COOs at Series B startups earn an average salary of £135,000 ($183,000 USD).
These rates were around £71,000 ($96,000 USD) for cofounder COOs in seed-stage companies and £125,000 ($169,000 USD) in Series B enterprises. (Cofounders are likely to accept a lesser salary because they receive equity remuneration.) Other elements that influence small company COO salaries include the number of employees and the level of expertise of the COO.
These salary figures are comparable to those for other startup leadership positions such as CEO (chief executive officer) and CTO. Of course, executive remuneration is only one aspect of startup salary. As the company expands, you’ll need to hire financial analysts, senior marketing managers, data scientists, database engineers, sales managers, sales reps, and a variety of other positions.
What are the Top 10 Highest Paying Cities for Chief Operating Officer Coo Jobs
We discovered ten cities where the usual salary for a Chief Operating Officer Coo job is higher than the national average, with NYC, NY topping the list, followed by Berkeley, CA, and Renton, WA in second and third place, respectively. Renton, WA outperforms the national average typical COO salary by $27,561 (17.7%), while NYC, NY outperforms the national average by another $33,893 (21.8%).
With average earnings higher than the national average in these ten places, the chances for economic progress as a Chief Operating Officer Coo appear to be extremely profitable.
Finally, the average COO salary for these top ten cities changes very little at 6% between NYC, NY, and Wausau, WI, emphasizing the limited opportunity for significant income advancement. When contemplating the location and salary for a Chief Operating Officer Coo post, the opportunity of a lower cost of living may be the most important element to consider.
| City | Annual Salary | Monthly Pay | Weekly Pay | Hourly Wage |
|---|---|---|---|---|
| New York City, NY | $189,474 | $15,789 | $3,643 | $91.09 |
| Berkeley, CA | $186,965 | $15,580 | $3,595 | $89.89 |
| Renton, WA | $183,142 | $15,261 | $3,521 | $88.05 |
| Santa Monica, CA | $182,093 | $15,174 | $3,501 | $87.54 |
| Merced, CA | $182,055 | $15,171 | $3,501 | $87.53 |
| Daly City, CA | $180,767 | $15,063 | $3,476 | $86.91 |
| San Mateo, CA | $180,190 | $15,015 | $3,465 | $86.63 |
| Boston, MA | $179,135 | $14,927 | $3,444 | $86.12 |
| Clovis, NM | $178,444 | $14,870 | $3,431 | $85.79 |
| Wausau, WI | $176,739 | $14,728 | $3,398 | $84.97 |
How do You Become a COO?
COO employment paths can be extremely diverse. Some persons rise to the position of COO after joining a tiny company or launching a business with a partner. Others spend years or decades ascending the corporate ladder inside one or more large firms before becoming a COO.
Other approaches to getting a head start on becoming a COO include the following:
#1. Gain experience in day-to-day operations
The more experience you have in day-to-day operations, the more competitive you are for the position of COO. Professionals who begin in project management may outperform the competition due to their hands-on knowledge in day-to-day business operations.
#2. Pursue professional certifications
Corporate training and development certificates, as well as other professional certifications relevant to your sector, will help you improve your operational expertise and demonstrate your eagerness to learn. An excellent COO is excited about the type of business they are assisting in running and growing.
#3. Build professional relationships through networking
While advancing your career, you should exercise caution in expanding your professional network. Most successful businesspeople have had fruitful relationships along the way. Many people spend so much time inside their company that they forget to focus on expanding their network. If you truly want to become a COO, the best strategy is to [do] well at your company while also expanding your external network with individuals who are rising through the ranks at other companies, executive coaches, and recruiters.
How Much Should a COO Make Compared to a CEO?
Salaries for each position may differ depending on the industry, experience, size of the company, and location. A CEO’s annual salary in the United States is $128,843. A COO’s annual salary in the United States is $137,876.
Is a COO Higher Than a VP?
In these circumstances, where the VP of operations is in charge of long-term operational strategy and the COO is in charge of day-to-day company operations, the company may give the COO a lesser position than the VP.
How Much Does a COO Make in NYC?
The 25th percentile salary is $126,000. Salaries below this are considered anomalies. The 75th percentile is $221,000 dollars.
How Old Is the Average COO?
COOs in the United States are overwhelmingly male (76.6%), with an average age of 51. The bulk (89%) of these COOs are above the age of 40, with the remaining 11% being between the ages of 30 and 40.
Is COO Stressful?
The fact is that as a COO, you are in a high-stress workplace, working for a high-growth company with several demands on your time. This can be caused by people, projects, or even the stress of expansion and day-to-day operations.
Who Typically Reports to COO?
COOs manage other executives and managers: The COO reports to the CEO, but everyone else reports to the COO, including mid-level managers such as sales managers, marketing managers, product managers, and other C-level executives such as the CFO and the CTO.
Is a COO a Senior Executive?
The chief operating officer (COO) is a senior executive in charge of a company’s day-to-day administrative and operational functions. The chief operating officer (COO) often reports directly to the CEO and is considered second in the chain of command.
What Position Is Next to COO?
The CEO is the company’s highest-ranking official. The COO is the second in command and reports to the CEO. Depending on the company’s structure, the CEO may report to the board of directors, the investors, or the founders.
Conclusion
It is not easy to develop a career as a COO. It demands a broad range of expertise as well as a strong passion for your sector. However, if you thrive at project management and enjoy the daily responsibilities of operating a firm, it can be a satisfying career path. And if you put in the effort, working toward your objective of becoming COO might pay off handsomely.
Related Articles
- CHIEF OPERATING OFFICER: Understanding the Roles of a COO and Qualifications
- MANAGEMENT TEAM: Company Management Team Tasks
- Chief of Staff (COS): Job Description, Skills & Salary In US
- CHIEF EXECUTIVE OFFICER: Meaning, Job Description, Duties & Salary
- Chief Strategy Officer: Organization Chart, Job Description & Salary
References
