The first half of 2024 has been intense, but we are pleased to report a noticeable increase in the number of Chief Product Officer (CPO) and VP-level hiring decisions being made by CEOs of B2B SaaS companies. This trend signals a growing recognition of the critical role that top-tier product leadership plays in driving business success.
Insights into SaaS CPO Salaries
One key insight we’ve gathered is the “average” base salary range for B2B SaaS CPOs in companies with Annual Recurring Revenue (ARR) between $50-$100 million typically ranges between $300K and $325K.
However, there are outliers. For companies with ARR closer to $50M, some candidates may earn closer to $250K. Conversely, for those with ARR approaching or exceeding $100M, base salaries can cluster around $350K. Despite these variations, the average base salary for B2B SaaS CPOs in companies with $50-100M ARR consistently falls between $300K and $325K.
The Two Numbers That Really Matter
There is some chatter suggesting that in an “employer’s market,” salaries might decrease as employees are more likely to “settle.” However, this is not what we’re seeing. While a significant percentage of companies downsized key product roles in 2022 and 2023 due to cost-cutting measures, the costs of these decisions are now becoming apparent.
Companies are facing leadership challenges, product organization churn, competitive pressures, increased investor pressure to deliver more value, missed opportunities for mergers and acquisitions that could scale quickly, and unfulfilled opportunities to capture market share.
Therefore, the two numbers employers should be concerned about are:
- What is it costing you to NOT have a CPO in place?
- What do you need to PAY to attract the person you want to hire?
As the CEO of your company, the first question should keep you up at night. The absence of a CPO can lead to stagnation in product development, a lack of strategic direction, and ultimately, a decline in competitive edge. The second question can be understood in the context of the problems you’re trying to solve, the scale of the opportunity you’re aiming to realize, and the scarcity of talent interested in your opportunity.
Success Story: Swift and Effective SaaS CPO Hire
The Product Recruiter (division of Martyn Bassett Associates) recently completed a CPO search in just 41 business days, and the CEO couldn’t be happier. The candidate was hired to scale the business from $50M to $100M. Their mission was to elevate how the company dreams about and delivers products that customers love and remain loyal to, double Average Contract Value (ACV), capture more enterprise customers, and drive velocity in achieving these goals.
“The process was swift, and the result exceeded our expectations. We found a CPO who is not only experienced but also perfectly aligned with our vision for growth.” — Zak Hemraj, CEO
Don’t let the absence of a key leader hold your company back. Find out how you can secure the right SaaS CPO to drive your business forward.