COOs unquestionably merit equitable compensation for their diligent efforts. What is the mean salary for a Chief Operating Officer (COO), and what is the exact compensation for a COO at a startup? This article will explore the average COO vs. CEO salary to guide you in the process of attracting and retaining the best.
COO Salary
A lot of people think of the COO as the “second in command” of the company, reporting straight to the CEO. The responsibility of carrying out the company’s strategy and business plan falls on the chief operating officers.
Typically, a company’s COO is responsible for representing the organization to external parties, while the CEO handles internal operations. So, for example, if the company gets bad press, the CEO can decide what to do and then leak the details to the public.
By hiring and overseeing the right people, including digital marketers, DevOps engineers, and customer support reps, the COO is accountable for making sure the CEO keeps his commitments. Chief operating officers often come from sales, marketing, business development, or product management backgrounds.
Occupations held by COOs range from director of customer success to manager, sales director to associate product manager, sales operations manager to Salesforce administrator, among several others.
What Does a Chief Operating Officer of a Small Business Make?
A chief operating officer’s salary at a startup is very variable and not easily quantifiable in a “one size fits all” fashion due to the many variables at play. Startup chief operating officer salaries are affected by factors such as:
#1. Years of Experience
Chief Operating Officers (COOs) with more experience in the field can probably get better compensation than those just starting.
#2. Living Expenses
Chief Operating Officers based in places like Silicon Valley, New York, London, etc. will require a larger income as remuneration.
#3. Funding
Late-stage businesses own a greater amount of capital in comparison to early-stage firms, affording them the ability to provide compensation.
#4. Equity
Chief Operating Officers (COOs) have the option, as we’ll talk about later, to accept a smaller compensation in return for a larger share of the company’s ownership.
An annual compensation of more than $122,000 is typical for chief operating officer positions in U.S. startups. This figure, however, conceals a great degree of unpredictability. A chief operating officer’s salary ranges from $69,000 at the 25th percentile to $216,000 at the 90th percentile.
Startup news website Sifted has taken a look at the other side of the Atlantic and created a salary survey for chief operating officers in the UK. On average, chief operating officers (COOs) who are not cofounders of seed-stage companies make £94,500 (USD 128,000) per year, whereas COOs at Series B companies make about £135,000 ($183,000) per year.
Average COO Salary
A Chief Operating Officer (COO) in the US can expect to earn an average of $151,203 per year. As a general rule, that amounts to around $72.69 per hour, in case you were wondering. That works out to $12,600 a month, or $2,907 per week. Chief operating officer salaries in the US can range from $111,500 (25th percentile) to $185,000 (75th percentile), with the highest earners (90th percentile) bringing in $233,000 per year.
Salaries can be as low as $41,500 and as high as $269,500. Chief operating officer salaries can vary widely (by as much as $73,500 on average), indicating that there is room for growth and compensation increases depending on factors like experience, education, and geographic region.
How Much Does a Chief Operating Officer Salary Typically Range in the Top Ten Cities?
Here are ten locations where COO salaries tend to be higher than the national average. First on the list is Redwood City, California; second and third place are Bainbridge Island, Washington, and Berkeley, California, respectively.
Bainbridge Island, WA, has a median household income that is $32,625 (21.6%) more than the national average, and Redwood City, CA, has a median household income that is $49,213 (32.5%) more than the national average of $151,203. As a chief operating officer, moving to one of these 10 cities seems like a fantastic opportunity for financial growth since their average wages are greater than the national average.
Last but not least, it’s worth noting that there isn’t much room for advancement in salary among these top ten locations, as the average salary hardly differs by 13% between Daly City, CA, and Redwood City, CA. When deciding where to put a chief operating officer (COO) and how much to pay them, it could be wise to look at areas with the potential for cheaper living costs.
There are at least five occupations in the COO field that pay more than the average COO income, according to our research. Chief medical officer, chief financial officer, and chief product officer are three prominent examples of such positions. Importantly, the average COO compensation is $151,203, while all of these positions pay an extra $40,560 (26.8%) to $123,389 (81.6%). It is possible to earn more than the typical chief operating officer’s salary by applying for and being recruited for one of these similar professions.
CEO vs COO Salary
CEO vs COO Salary CEOs receive higher remuneration since they bear the brunt of overseeing the entire organization. The average yearly income for a COO is $308,253, while the average yearly salary for a CEO is $14 million, according to the Economic Policy Institute.
Chief Executive Officer Duties
For a company to thrive and expand, its most senior executive, the chief executive officer (CEO), must be in place.
The key duties of a chief executive officer are as follows:
#1. State Your Company’s Long-Term Goals
Any company needs to have a plan for the future and a vision for the future. A company’s vision is defined in large part by its chief executive officer. A software startup’s CEO, for instance, may dream of his firm being a trailblazer in a new technology.
#2. Develop Plans for the Future
The chief executive officer is primarily responsible for carrying out strategic planning. Opportunities will be revealed and risks will be reduced as a result of these strategic decisions. The future of the company is also affected by these tactics.
#3. Interact With the Board of Directors
As a liaison between the board and the rest of the company, the chief executive officer (CEO) is often a member of the board of directors in most firms. They keep the board apprised of the company’s progress, finances, and hazards.
#4. Represent the Business in a Public Setting
An integral component of a chief executive officer’s role is to enhance the standing of the company. They represent the company in public settings, such as news conferences and conventions, and serve as its public face.
Chief Operating Officer Duties
Directly reporting to the CEO, the COO is the second-in-command. When it comes to strategic planning, the CEO is king, but when it comes to day-to-day operations, the COO is queen bee.
These are the main functions of a chief operating officer.
#1. Manage the Company’s Day-To-Day Activities
The chief operating officer (COO) collaborates closely with several divisions to guarantee efficient operations, including production, sales, marketing, finance, and human resources.
#2. Establish Procedures and Policies for the Workplace
The chief operating officer is responsible for making sure everything runs smoothly. Part of this role is for the chief operating officer to establish and oversee procedures that keep the company running smoothly.
#3. Keep an Eye on Key Performance Indicators
Even if the CEO sets the key performance indicators, it is the responsibility of the chief operating officer to make sure the company meets its performance targets. Accordingly, the COO needs to keep a careful eye on the KPIs.
#4. Collaborate With the CFO to Develop Cost Plans
To keep all departments within their budgets, the COO must work along with the CFO. They need to keep an eye on the department’s spending to make sure it’s in line with the company’s budget.
There are more disparities within the roles of chief executive officer and chief operating officer than just their job descriptions would indicate. A chief operating officer (COO) in the United States can anticipate earning an average of $480,378 each year; however, a chief executive officer (CEO) can expect to earn an average of $823,245, per Salary.com.
What Is the Highest COO Salary?
Chief Operating Officer (COO) salaries in the United States typically fall between $75,677 and $897,806, with an average salary of $187,040.
What Does a COO Do?
The chief operating officer (COO) is responsible for overseeing and managing the company’s day-to-day operations, collaborating closely with supervisors and department heads to facilitate employees’ day-to-day work.
Is CFO Bigger Than COO?
Although they report directly to the CEO, the chief operating officer (COO) is second in leadership. Also, the CEO hires them. Like the chief operating officer and other members of the executive suite, the chief financial officer is employed by the chief executive officer and reports directly to them.
Is COO a Boss?
From overseeing routine operations to offering guidance on long-term strategy, the chief operating officer (COO) is a manager with many hats to wear. They report straight to the CEO and are second in command when it comes to corporate matters; their responsibilities include overseeing operational and administrative tasks daily.
Who Falls Under COO?
Everyone else reports to the COO, including the CEO; however, the COO is responsible for overseeing middle-level managers such as sales, marketing, and product managers, as well as other C-level executives such as the CFO and the CTO.
- CHIEF OPERATING OFFICER: Understanding the Roles of a COO and Qualifications
- CHIEF EXECUTIVE OFFICER: Meaning, Job Description, Duties & Salary
- Chief Strategy Officer: Organization Chart, Job Description & Salary
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