What Are The Differences Between UK and US Compensation? (Thelander Private Company Digest)

Welcome back to the Thelander Digest for July. Last year, we explored global compensation data for private companies, and this year, we've significantly deepened?our scope. In collaboration with the BioIndustry Association (BIA) in London, we have launched the Private Company UK Compensation Initiative, enhancing our offerings with real-time compensation data specifically tailored for the UK market.

The movement of talent is notable, with many UK-based private companies employing US-based CEOs, CFOs, and other executives. Additionally, life science companies in hubs like Boston and San Francisco are?expanding into the UK and require private market specific data to benchmark their compensation accurately.

So, how does UK compensation compare to the US? Let's dive in.

Chart 1 shows the total cash for CEOs in life sciences. We see the following:

• When looking at the median and 75th percentile for total cash,?Boston is the highest paid region coming at $399,000 at the median and $615,000 at the 75th percentile.
• The median total cash compensation for the UK is $381,000, which is in line with Southern CA and higher compared to Northern CA.?
• The maximum for Northern CA is significantly higher, which can be accessed on the Thelander platform by participating in the no-cost private company compensation survey. It’s also worth noting that layering on the total amount of financing impacts the mix of cash and equity - which can be customized on the platform.

Chart 2?shows the total founder equity for CEOs in life sciences. We see the following:

• The founder equity is lower in the UK compared to companies headquartered in Boston, Southern?CA, and Northern CA. Again, the total amount of financing impacts the mix of cash and equity and is important to take into consideration when benchmarking your founders equity.?
• While Northern CA had lower cash compared to other US regions - it has higher founder equity than any other region - which might offer some explanation for the lower cash.

Chart 3?shows the non-founder equity for CEOs in life sciences. We see the following:

• Non-founder equity for CEOs ranges from 4.43% to 5.88%.
• Region doesn’t make as much of an impact on the percentages, while the total amount of financing does. However, we do see Northern CA at the higher end, again suggested a heightened taste for equity as a part of the compensation mix.?

What's the bottom line?

Our analysis featured in this Digest?reveals significant insights into the compensation dynamics within the UK and US markets. Notably, Boston/Cambridge?emerges as the highest-paying region for median and upper-tier total cash compensation levels, affirming its stature in the global life sciences sector. However, when it comes to equity, Northern California outpaces other regions, highlighting the appetite for high stakes and rewards in Silicon Valley. In contrast, founder equity in the UK lags behind US regions, reflecting perhaps more conservative or less-sophisticated equity distribution practices. Yet, equity percentages for non-founder CEOs do not vary significantly by region, indicating a more uniform approach across geographies, more-so?influenced by the total amount of financing.

Participate in the Thelander Private Company Comp Survey today for access to real-time data!

Dive deeper into these findings and access customized data by participating in the Thelander Private Company Compensation Survey. As a participant, you’ll gain free access to a subset of detailed results that can guide your compensation strategy and ensure you remain competitive in this dynamic market. If you're a BIA Member with specific questions about this partnership or how it can benefit your organization, please reach out directly through this email.