A CEO is the highest-ranking executive in any firm, making them crucial to the company’s success. The responsibilities of the role span from developing the long-term strategy of a company to assessing the risks a company may face. This being said, it is often the hardest role to hire for in a Tech start-up. So, how do you tackle this?
6 things you need to do when hiring your CEO
Solidify your strategy
Defining the strategy of your start-up will help to pinpoint what you will need from your new CEO. The right candidate will have experience executing a similar strategy and enhancing the skillset already available in the leadership team. This should all align to push the start-up through its stages of growth.
Define the skills needed
It is important to not only look for leadership and interpersonal skills from your new CEO, but they should also be able to create a culture of collaboration. Your candidate must know the market in which your start-up operates inside-out to be the driving force in structuring the company. The ability to adapt to any challenges that may arise is also key as it will lead to strong and sustainable growth.
Be open to change
A new CEO means new processes and procedures. It is important that management evolves as the company grows so all senior members must be open to change.
Promote a close relationship between the new CEO and the team
The new CEO must have the right chemistry and connection with the rest of the leadership team. It is important within the CEO’s transition to form a cohesive team that works well with the CEO across multiple functions.
Capture and transfer knowledge of the business
A very important factor in the transition process is making sure all relevant knowledge is fully documented. The new CEO must be told or able to find any information they may need about the company to lead the rest of the team and execute the role. Failure to do this can result in confusion and the leadership team not being on the same page.
Make the handover period minimal
The handover period ensures that knowledge is retained and transferred effectively from the founder to the new CEO, without leaving any knowledge gaps. It should not last longer than thirty days; ideally, it should last roughly two weeks.
What salary should you offer to your new CEO?
When you are the founder of a FinTech start-up that has just received funding, it can be difficult to decide the salary range for your new CEO.
To make the decision simple and strategic, ask yourself the following three questions:
How much money is in the bank?
You need to be able to afford the talent you are recruiting without it having a knock-on effect on your finances. Bringing on a new CEO requires a high salary package, so it is vital to ask tough questions like how much money do we have in the bank? How long will it last us? How will this be affected once the cash package is confirmed?
What’s your current valuation?
Working out how much your business is worth will help to establish the value of equity. The value you decide on will be a key factor for the new CEO.
What’s the average salary for a start-up CEO?
Average start-up CEO salary
| Average Salary | $200,000 |
Average start-up CEO salary by capital raised
| $0-2M | $2-5M | $5-10M | $10M + | |
| Average Salary | $180,000 | $230,000 | $280,000 | $340,000+ |
Hiring a CEO for your fintech start-up can be a scary step, but it is important that you have the right person in charge to help the business scale and reach the long-term business goals. Executing factors such as the hiring process, the onboarding process, and the compensation well will help you to secure the right talent.
Are you looking for a CEO to take your company to the next level? Get in touch. Our specialist consultants can advise you on the process and connect you with their network of highly skilled professionals.
