The state of startup compensation today (Founder Q&A)
May 13, 2024
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Explore startup compensation trends in 2023 with insights on hiring, layoffs, salary trends, equity compensation, and the state of remote work at U.S. startups. Dive into data from Carta's State of Compensation Report for a comprehensive look at the current landscape.
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Quick takeaways
Startup hiring in 2023 slowed compared to previous years, impacting workforce across startups.
Lower-tenured employees were most affected by layoffs, reflecting 'last in, first out' pattern.
Deep dives
Startup Hiring Trends
Startup hiring in 2023 slowed down significantly compared to previous years as shown by a bar chart depicting new hires in CARTA startups. The number of people leaving their jobs also increased, leading to an overall decrease in the total workforce working across the startups. The impact of the slowdown was evident in the hiring market, marking a challenging phase for startups as they navigated through hiring and layoffs.
Impact of Layoffs on Startup Employees
The data reveals that lower-tenured employees were most affected by layoffs, following the pattern of 'last in, first out.' A stacked bar chart illustrated the percentage of employees leaving before their first work anniversary, indicating a significant increase from previous years. The high turnover rate before the first year reflected the harsh reality of startup layoffs in 2023, posing challenges for employees with shorter tenures in the startups.
In this episode of The Data Minute, join Peter as he breaks down five charts from Carta's recent State of Compensation Report to answer five of the most common founder questions related to startup compensation today.
Using anonymized, aggregated data from Carta's Total Compensation tool, Peter dives deep into:
• Startup hiring and layoffs • Equity and salary compensation compared to previous years • The state of remote work at U.S. startups
You can access this data and more with our State of Startup Compensation report, which you can read at the link below. And if you have a question you'd like Peter to answer on the Data Minute, send us an email at dataminute@carta.com.
Read the State of Startup Compensation report: https://carta.com/blog/startup-compensation-h2-2023/
Subscribe to Carta’s weekly Data Minute newsletter: https://carta.com/subscribe/data-newsletter-sign-up/
Chapters: 00:00 Intro 01:13 Are startups still hiring? 02:15 Who got hit in startup layoffs? 03:25 How is salary trending across private startups? 04:38 What is happening to equity compensation? 06:00 What is the state of remote work at U.S. startups? 07:10 Final thoughts