Private Equity Executive Pay in 2025: What the Numbers and Deal Data Reveal
What the Data Shows: Compensation Remains Competitive
In 2025, compensation trends for top executives in private equity (PE) — both at the fund level and in PE-backed companies — remains robust despite a more cautious macro and capital-markets environment. Publicly released compensation surveys and fresh data on deal activity reinforce a core reality: firms are paying up to secure proven talent — especially in sectors where deal flow and value creation remain strong.
In our experience working with Private Equity backed companies on 100+ executive level searches, we have a front row seat to compensation trends to attract the talent to help you achieve your next company milestone.
- According to the 2025 Carta “PE Executive Equity Report,” equity compensation is becoming more common and more meaningful at PE-backed corporations. The report draws on data from more than 1,500 corporations and 500 LLCs to illustrate how equity-based pay is being used to align management incentives with long-term performance. (Carta)
- Broader industry data shows a rebound in deal activity. For example, a 2025 report from Cherry Bekaert finds that U.S. PE deal activity in 2024 (deal counts and aggregate value) surpassed 2019 levels — a strong signal that PE firms are again deploying capital rather than idling. (CBH)
- The most recent Heidrick & Struggles (H&S) “2025 North America Private Equity Investment Professional Compensation Survey” — based on 656 respondents — confirms that pay remains high for PE investment professionals, and competition for experienced deal- and exit-ready talent remains fierce. (Heidrick & Struggles)
- The increased deal flow appears paired with more targeted, sector-specific investing. As noted by EY and other PE-industry observers, 2025 is seeing a shift toward value-creation, specialized funds, and sector-focused plays. (EY)
Together, these findings suggest that both compensation and hiring remain selective, measured — and still geared to win talent that can deliver results.
Who’s Getting Paid — And What They’re Earning (Rough Benchmarks)
Based on public/survey data and industry-reported pay structures:
- Fund-side investment professionals (Partners, Managing Directors, Senior Investment Professionals): H&S data indicates these roles remain among the most highly compensated in the industry, with variation based on firm size, track record, and strategy.
- PE-backed company execs (CEOs, CFOs, Operating Leaders): Equity compensation is becoming standard at many PE-backed firms, per the Carta report — especially in businesses where buyouts or growth strategies anticipate significant value creation. (Carta)
- Overall trend: Pay packages are increasingly balanced — combining cash (salary & bonus) with equity or performance-based incentives, reflecting a shift toward long-term alignment rather than short-term payouts. (Private Equity Compensation)
Because the surveys are anonymized and aggregated, publicly available data generally stops short of giving precise “median CEO in PE-backed firm makes $X,” but the combination of fund-side data + equity-reporting suggests that total compensation — for top roles — remains well into the high six- to low seven-figure range, depending on company size, complexity, and exit prospects.
Where the Demand (and Compensation Pressure) is Highest: Industry & Vertical Trends
Recent deal and industry-allocation data strongly suggest that certain verticals attract disproportionate PE capital in 2025 — and with that, elevated demand for operational and executive talent. Key sectors include:
| Sector / Vertical | Why It’s Attractive in 2025 | Implication for Executive Compensation for 2026 |
| Healthcare & Health-Tech | Private equity investment in healthcare technology surged in 2024/25 — deal-value in healthcare tech reportedly increased by ~50% over the prior year. (S&P Global) | PE-backed healthcare firms are likely offering premium equity packages and generous total-compensation to attract seasoned leadership — especially those adept at navigating regulatory, compliance, and integration complexity. |
| Technology / Software / SaaS | Technology (especially software) continues to dominate PE deal flow, with many firms focusing on high-growth, high-margin business models. (CBH) | High competition for talent drives aggressive equity grants and upside participation — particularly for CEOs, CTOs, and growth/ops leaders capable of scaling SaaS businesses post-investment. |
| Infrastructure & Digital Infrastructure | PE firms are increasingly targeting infrastructure and digital-infrastructure assets as stable, long-term plays exposed to macro trends. (Kearney) | Executives with operational experience in capital-intensive, long-horizon projects may receive larger cash compensation plus long-term incentives to reflect project risk and complexity. |
| Industrial, Business Services, and Consumer / Retail (roll-ups, services consolidation) | As macro conditions stabilize, PE firms are returning to roll-up and consolidation strategies in fragmented service/industrial sectors. (CBH) | Demand for experienced integration and operations executives rises — and so does the bidding for skilled leadership, pushing compensation packages upward for COO/CFO-type roles and functional heads. |
In short: compensation pressure is not uniform across the board. Firms investing in capital-intensive, high-growth, or high-complexity sectors are increasingly offering top-of-market pay, with more attractive combinations of cash, equity, and long-term upside to secure the right leadership.
Why 2026 Will Be More About “Smart Pay” Than “Golden Handshakes”
The data and deal-market dynamics point to a subtle shift in how PE firms think about compensation:
- Longer-term orientation. With equity compensation now common at PE-backed companies, firms are aligning incentives for multi-year value creation, not just short-term performance. (Carta)
- Selective hiring, high bar. Given tougher LP scrutiny and slower fundraising relative to boom years, PE firms are being very selective — they’re betting big only on proven deal-makers and operators. That increases competition for high-caliber talent.
- Sector specialization drives compensation differentiation. As PE firms raise more sector-specific funds (health-tech, infrastructure, digital services, etc.), executives with domain expertise in those verticals are increasingly valuable — and paid accordingly. (Accenture)
What This Means For 2026 and Beyond
Given the continuing sector-focused deal flow and the increasing emphasis on long-term value creation, 2026 is likely to be a year where compensation packages — particularly for deal-ready operators and sector-specialist executives — remain highly competitive. Firms that want to secure and retain top talent will likely continue offering balanced but upside-heavy packages (cash + equity + performance incentives).
At the same time, compensation spreads within firms may widen further: the gap between “average performers” and “strategic value-creation leaders” is likely to grow larger.
Challenges & What’s Not Publicly Known
- Compensation data for portfolio-company executives remains less transparent than for fund-side investment professionals. While equity reports like Carta’s give insight into structure and prevalence, publicly available data rarely reveals exact totals (especially for carry + IRR-based payouts).
- Equity upside depends heavily on exit timing and macroeconomic conditions. Even well-designed packages may underperform if exits stall, interest-rate environments deteriorate, or valuations compress — which introduces real long-term risk (for both sponsor and executive).
- Sector valuations and investor appetite are cyclical. Sectors that look hot in 2025 may become crowded in 2026, regulatory headwinds can emerge, or macro shifts can change the risk/return profile — which could dampen compensation growth or slow hiring.
Why This Matters — And What Sponsors / Executives Should Watch
For sponsors and boards, the 2026 compensation landscape underscores the importance of strategic, sector-aware comp design. Awarding top-of-market compensation generally means little without structuring incentives to drive real value and ensure retention through the long-term.
For executives — especially those with sector-specific expertise or operational track records — 2026 represents a strong opportunity to benchmark aggressively, negotiate meaningful equity participation, and position yourself for upside tied to exits or major value creation milestones.
What Compensation Question Can We Help You With?
We would love to help you strategize salary, bonus and equity compensation levels as you look at 2026 strategy to keep and recruit the executive talent you want. We can provide you a current salary report for free for one of your portfolio companies.
Let’s connect – If you’d like to talk about compensation strategy or future executive search needs in your portfolio companies.
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