Our salary review focuses on the compensation packages for key sales roles within the AI (Artificial Intelligence) and ESG (Environmental, Social, and Governance) fintech sectors in the UK and European markets. The review includes information on base salary, commission/bonus structures, and equity/share options. Additionally, it explores the potential variations in salaries based on the backing of companies, including private-backed, PE-backed, or VC-backed.
Chief Revenue/Commercial Officer (CRO/CCO):
The Chief Revenue/Commercial Officer is responsible for overseeing the revenue generation strategies and operations of an organisation. They manage and align sales, marketing, and business development functions to drive growth and maximize profitability.
Base Salary (UK and European Markets):
In the UK, the base salary for CRO/CCOs in AI FinTech’s typically ranges from £190,000 to £250,000 per year. In European markets, the base salary usually falls within the range of €180,000 to €280,000 per year. ESG firms are showing an increase in their compensation package, however, CRO/CCO’s are still, on average, earning between £170,000 – £200,000 in the UK and €150,000 – €200,000 in Europe depending on the stage of funding the firm are at.
Commission/Bonus Structure:
CRO/CCOs often have a significant variable component in their compensation packages. Commissions or bonuses can range from 30% to 60% of the base salary, based on individual and company performance.
Equity/Share Options:
Equity or share options are frequently provided to CRO/CCOs, particularly in companies backed by private equity (PE) or venture capital (VC) firms. The value of these options can vary widely based on the company’s funding and growth stage, with typical grants ranging from 1% to 3% of the company’s equity. In 2021 and 2022, CRO/CCO’s showed significant desire for equity components to be included and as a result, were willing to take a reduced base salary or bonus.
Global Head of Sales:
The Global Head of Sales leads the sales strategy and operations on a global scale. They are responsible for driving revenue growth across multiple regions and managing international sales teams.
Base Salary (UK and European Markets):
In the UK, the base salary for Global Heads of Sales in AI fintech’s typically ranges from £140,000 to £200,000 per year. In European markets, the base salary usually falls within the range of €140,000 to €240,000 per year. Similar to CRO/CCO’s, we have seen a slightly lower base salary within the ESG fintech space for Global Head of Sales, with an average of £130,000 to £180,000 in the UK and €140,000 to €160,000 in Europe.
Commission/Bonus Structure:
Global Heads of Sales often have a variable component in their compensation packages. Commissions can range from 50% to 100% of the base salary, depending on individual and company performance. Bonuses are typically dependent on softer targets and teams performance.
Equity/Share Options:
Equity or share options are commonly offered to Global Heads of Sales, especially in PE-backed or VC-backed companies. The value of these options may range from 0.5% to 2% of the company’s equity.
EMEA/Regional Head of Sales:
The EMEA (Europe, Middle East, and Africa) Head of Sales is responsible for overseeing sales operations and driving revenue growth within the EMEA region. They manage regional sales teams and develop strategies to penetrate new markets.
Base Salary (UK and European Markets):
In the UK, the base salary for EMEA Heads of Sales in AI fintech’s typically ranges from £120,000 to £180,000 per year. In European markets, the base salary usually falls within the range of €110,000 to €220,000 per year. PE backed business’s saw an increase of around 10% in salary ranges during 2021 to 2022 and we predict a similar rise over the next 2 years. ESG fintech’s showed a similar range with PE or VC backed companies paying a range from £110,000 – £160,000 base salary to their Head of EMEA leaders. With European based leaders earning between €110,000 – €145,000.
Commission/Bonus Structure:
EMEA Heads of Sales commissions or bonuses range from 60% to 100% of the base salary, based on individual and company performance. In 2021 to 2023, we have seen a dramatic increase in the use of commission structures for sales leaders, as opposed to a traditional bonus. The use of ‘uncapped commission’ plans has been a preferred tool by C-Level leadership to create a more commercially driven incentive scheme with an annual bonus that is typically capped at 10% of base salary. This will reflect the individuals performance, as well as team performance, due to more and more firms expecting sales leaders to generate their own revenue, in addition to their teams.
Equity/Share Options:
Equity or share options are frequently provided to EMEA Heads of Sales, particularly in companies backed by PE or VC firms. The value of these options may range from 0.3% to 1.5% of the company’s equity.
Sales Directors:
Sales Directors oversee the sales function within an organisation, developing sales strategies, managing key accounts, and driving revenue growth. They play a crucial role in building and leading high-performing sales teams.
Base Salary (UK and European Markets):
In the UK, Sales Directors in AI fintech’s can expect a base salary ranging from £90,000 to £150,000 per year. In European markets, the base salary typically falls within the range of €80,000 to €140,000 per year. ESG firms, again, were slightly below this, with a range of £65,000 to £90,000 in the UK and €50,000 – €90,000 in Europe. Switzerland and Sweden based firms were slightly above this average in 2022 due to the increase in demand for salespeople based locally and serge in PE and VC investment.
Commission/Bonus Structure:
Sales Directors often have a significant variable component in their compensation package. Commissions can range from 75% to 200% of their base salary, based on individual performance. Bonus’ are a rarity for Sales Directors within series A to C backed fintech firms, however, we have seen examples of firms incentivising Sales Directors with a quarterly bonus of a fixed fee ranging from £2,500 – £5,000 for overachieving on sales targets.
Equity/Share Options:
Equity or share options are commonly provided to Sales Directors in AI and ESG fintech. The value of these options depends on the company’s funding and growth stage, with typical grants ranging from 0.3% to 1.2% of the company’s equity. This will also depend on the stage of investment and type of investment the firm have received. In 2022, we saw Sales Directors as the first hire CEO’s were making outside of their Exec, product and tech teams. As a result, a healthy equity package was offered to compensate for the potential risk that was being taken.
Sales Executives:
Sales Executives are responsible for driving revenue by prospecting, qualifying leads, and closing deals. They play a crucial role in building relationships with clients and achieving sales targets.
Base Salary (UK and European Markets):
In the UK, Sales Executives in AI fintech’s can expect a base salary ranging from £40,000 to £80,000 per year. In European markets, the base salary typically falls within the range of €50,000 to €100,000 per year. ESG fintech’s have seen an increase in the past year for base salary ranges, due to the increase in capital raising in the space. As a result, they have been able to offer a competitive base salary of £40,000 – £60,000 for Sales Execs in the UK and €35,000 – €50,000 in Europe. Again, Swiss and German based firms were slightly above this average.
Commission/Bonus Structure:
Sales Executives often have a significant variable component in their compensation structure. Commissions or bonuses can range from 15% to 50% of the base salary, depending on individual performance. Most firms we analysed implemented an uncapped commission structure for their salespeople and saw a drastic increase in their overall sales and revenue results.
Equity/Share Options:
Equity or share options are very occasionally provided to Sales Executives as part of their compensation package, particularly in companies at advanced growth stages. The value of these options may range from 0.1% to 0.5% of the company’s equity. A common structure that is used by advanced growth stage firms is an option contribution of 20% of base salary that vests over a 3 year period in 3 increments. This not only incentives salespeople to deliver growth for the firm, but also commit to the firm as an employee long-term.
Account Managers:
Account Managers are responsible for nurturing and expanding relationships with existing clients. They work closely with clients to understand their needs, deliver value, and identify upselling or cross-selling opportunities.
Base Salary (UK and European Markets):
In the UK, Account Managers in AI fintech’s can expect a base salary ranging from £50,000 to £80,000 per year. In European markets, the base salary typically falls within the range of €45,000 to €85,000 per year. ESG fintech’s range is slightly lower, with the average Account Manager in the UK earning between £40,000 and £60,000 and €40,000 – €55,000 in Europe.
Commission/Bonus Structure:
Account Managers may have a moderate variable component in their compensation package, which can range from 5% to 25% of the base salary, depending on whether they are targeted on cross-selling and up-selling or purely account retention. Typically, account retention for series A-C start-ups, is designated to the salespeople who are given hybrid responsibility, however, when a firm accelerates their growth, specific and targeted retention is designated to an account manager and they are compensated accordingly.
Equity/Share Options:
Equity or share options are less common for Account Managers, primarily as they are not directly responsible for generating new business. However, in some high-growth companies, they may receive small equity grants ranging from 0.05% to 0.2% of the company’s equity.
Variations in Salaries based on Backing (Private, PE, VC):
The backing of companies by private investors, private equity firms (PE), or venture capital firms (VC) can influence salary levels in the AI and ESG fintech sectors. Here’s some context on how this can impact compensation:
Privately Backed Companies:
Privately backed companies may have more flexibility in designing compensation packages, as they are not subject to the same disclosure requirements as publicly traded companies. This flexibility can result in more customised packages tailored to attract and retain top sales talent, including higher base salaries, performance-based bonuses, and potentially more substantial equity/share options. They are also, primarily, more cautious with paying above market-rate, due to the re-investment of revenue into the growth of the firm to avoid outside investment.
PE-Backed Companies:
PE-backed companies typically have a focus on driving profitability and maximising return on investment. As a result, they may offer competitive base salaries, significant performance-based bonuses, and equity/share options. However, there may be more emphasis on financial performance targets and a potential trade-off between base salary and variable compensation components.
VC-Backed Companies:
VC-backed companies are often in high-growth phases, with a focus on scaling rapidly and capturing market share. Salaries in VC-backed companies may have a balance between base salary and variable compensation, with more significant emphasis on equity/share options. This approach aligns the interests of sales professionals with the company’s growth and potential future liquidity events.
Salaries for key sales roles in AI and ESG fintech, such as Chief Revenue/Commercial Officers, Global Heads of Sales, EMEA Heads of Sales, Sales Directors, Sales Executives, and Account Managers, vary based on factors such as the role, market, individual performance, and the backing of the company. Compensation packages typically include base salary, commission/bonus structures, and equity/share options. The backing of companies by private investors, PE firms, or VC firms can influence salary levels, with variations in emphasis on base salary, performance-based bonuses, and equity/share options, depending on the strategic goals and growth stage of the company.