Supra Insider #39: How PM compensation has changed in the last two years | Peter Walker (Head of Insights @ Carta)
Jan 6, 2025
Peter Walker, Head of Insights at Carta, dives into the changing landscape of product management compensation. He reveals modest salary shifts and a decline in equity compensation since 2022. The conversation explores how AI is reshaping industry roles and altering hiring patterns. Peter also discusses the tricky terrain of equity exercise risks and why many employees hesitate to cash in on options. With insights on navigating the competitive job market, Walker's expertise sheds light on the future dynamics of the startup ecosystem.
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PM Compensation Trends
- Product management compensation has seen minor salary increases (1-2%) in 2024 after a period of stagnation.
- Equity, however, is down about 30% compared to early 2022 but has recently begun to recover.
Equity Decrease Factors
- The decrease in equity compensation is primarily driven by reduced hiring and increased employer leverage in negotiations.
- This is unlike 2021 when candidates often had multiple offers, giving them more power.
Equity vs. Cash
- Never treat equity like cash, even at later-stage companies, due to restrictions and uncertainties.
- Focus on cash and bonus as your primary compensation, viewing equity as an upside potential.