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kAustralian-Startup-Salary-Guide-21-22.pdf

  1. 1. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 STARTUP SALARY GUIDE
  2. 2. COMMUNITY PARTNERS 2 THANK YOU Think & Grow and KPMG High Growth Ventures would like to thank the venture funds listed below for their support in helping to collect the necessary data. In particular we would like to thank Emily Close from Airtree and Imogen Baxter from Square Peg for all of the extra effort behind the scenes to make this a reality. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  3. 3. SPONSORS AND SUPPORTERS AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 3 This guide was made possible with the support of the Tech Council of Australia and the sponsorship of leading HR technology business Hibob. We cannot thank both organisations enough for allowing us to produce a high quality guide that will be freely available to all in the ecosystem. ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  4. 4. CONTENTS AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 4 SECTION 1 05 - 14 - Introduction, foreword and key findings SECTION 2 15 - 39 - Remuneration tables and commentary SECTION 3 40 - 49 - Employer share option plans (ESOP) SECTION 4 50 - 56 - Total rewards and talent insights SECTION 5 57 - 63 - Conclusion and methodology ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  5. 5. INTRODUCTION AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 AS THE DUST SETTLES ON A TUMULTUOUS 2020 AND 2021, OVER AT THINK & GROW WE HAVE BEEN ASKING OURSELVES “WHAT DOES 2022 AND BEYOND LOOK LIKE FOR THE AUSTRALIAN STARTUP ECOSYSTEM?” As the broader global economy begins whispering the word “stagflation” and we bear witness to record amounts of capital becoming available to the Australian ecosystem one thing we know with certainty is that we are entering a period of unprecedented conditions. We are now in the third iteration of this salary guide and our mission is to provide data and insights to startups, jobseekers, investors and others in the community to make better business and hiring decisions. This year the guide is bigger and better than ever with over twenty Australian venture capital funds working with their portfolio companies to collect data. In total over 140 companies provided remuneration data for over 3,000 positions collected. Given this complexity we are excited to be partnering with KPMG High Growth Ventures to assist with the data cleaning and data analysis. We cannot thank the startup community enough for their contribution in helping to create this guide. As widely reported in the press, we are seeing strong wage growth in most areas which may lead to unsustainable wage growth where only the wealthiest startups can compete for talent. To think about this predicament, the conversation must become about “total reward”. Total reward is defined as the total tangible and intangible benefits one receives when joining a business. This includes tangibles such as; base salary, superannuation, bonus and ESOP , and intangibles such as; work-life balance, training, organisational culture and values alignment. We have interviewed executives and former and current founders to help understand the intricacies of remuneration and particularly how ESOPs are deployed. We also speak with Aussies returned from Silicon Valley, to give us a sense of what we can expect in the future if, as is often the case, we follow in the USA’s footsteps. Anthony Sochan & Jonathan Jeffries Founders of Think & Grow The guide is aimed at helping and supporting the community; Whatever way it benefits you. We hope it’s helps :) 5 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  6. 6. FOREWORD AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 FOR ANY STARTUP , PEOPLE ARE THE MOST IMPORTANT ACCELERANT. YES, YOU NEED A GREAT IDEA, AND A GREAT PRODUCT But without great people, you simply can’t scale a business, and build a company from 10s to 100s of team members in just a few years. So, it should come as no surprise that the ability to hire and engage a team consistently ranks among the top challenges that founders face. In May this year, half of founders cited hiring as one of their biggest barriers to success over the coming year in our annual KPMG High Growth Ventures Founder’s report. It regularly comes up in my conversations with founders as one of their major headaches. The current economic environment has not helped: the recruitment crunch meets the great resignation. Technology skills are always in demand, and our KPMG research into Australian ventures suggests there are also growing requirements for talent in areas such as sales and marketing. Restrictions on international talent coming into Australia during 2021 have made the situation more challenging, and with a ‘great resignation’ expected, the talent crunch may get worse before it gets better. In markets where demand outpaces supply, the cost to hire invariably increases. It becomes even more difficult for startups to know how to set the right levels for remuneration, and to balance the need for an experienced hire against the cost of engaging talent. As engineer and statistician W. Edwards Denning said: “Without data, you’re just another person with an opinion.” That is why reports such as this one are such an important tool. We’re delighted to have joined forces with Think & Grow for the third iteration of the startup salary guide. We know it will be welcomed by people across the startup eco-system, including founders, startup employees, recruiters and investors. We hope you find it useful. Amanda Price KPMG High Growth Ventures 6 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  7. 7. KEY FINDINGS AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 Given the growth and success of the ecosystem over the past 12-24 months, it is unsurprising that the data shows the majority of base salaries and ESOP allocation increase in tandem with company growth. However, the Australian salary landscape is still lacking any sense of standardisation when it comes to the distribution of ESOP packages with data showing very few consistent trends when considering variables like funding, revenue or valuation and almost no correlation with median base salary. 49% OF ROLES HAD ESOP ALLOCATIONS forming part of their remuneration packages. EXECUTIVE ROLES HAVE ON AVERAGE ~$167K IN EQUITY VALUE with 64% of them participating in ESOP , and non exec roles have on average ~$17k in equity value, with 45% of them participating in ESOP . 2-3x THEIR BASE SALARY IN EQUITY A significant proportion of executive “Chief” and “Head of” roles saw up to 2-3x their base salary in equity and sometimes up to as much as 10x their base base salary was offered as equity. THE VAST MAJORITY (86%) OF COMPANIES OFFER FLEXIBLE WORKING ARRANGEMENTS Whilst 52% of companies offer parental leave, 48% offer food perks and 44% provide wellbeing programs, there are a wealth of other benefits companies are beginning to provide as part of their perks and benefits packages. THE MAJORITY OF COMPANIES HAVE HIRED NEW TALENT IN THE PAST 12 MONTHS with 50% agreeing that recruitment has been more challenging during the past 18 months. 143 AUSTRALIAN STARTUP COMPANIES from a range of industries and growth stages completed an online survey to provide salary data DATA POINTS FROM WHICH WE HAVE GENERATED KEY INSIGHTS 32,000 7 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  8. 8. RESPONDENT DEMOGRAPHICS AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 143 Australian startup companies from a range of industries, sizes and development states completed an online survey and donated salary data. 8 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW VALUATION (%) BUSINESS SIZE (%) INDUSTRY BUSINESS MODEL 56 44 28 15 13 7 4 B2B SaaS B2C Enterprise Marketplace Ecommerce Service 20 41 13 23 3 Team 1 - 10 Team 11 - 50 Team 51 - 100 Team 101 - 250 Team 251 - 500 32% 18% 11% 11% 8% 7% 8% 5% 5% 2% 4 % 2% 2% 5% 2% 9% 21% Fintech Health and Biotech Retail Deeptech Agtech Aerospace Martech Cyber Energy HR Tech IOT Real Estate Tech Other 36 23 13 21 7 <$20m $20m - $50m $50m - $100m $100m - $500m $500m - $1bn
  9. 9. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 9 REVENUE (%) CAPITAL RAISED (%) FUNDING STAGE (%) Bootstrapped Pre-Seed Seed Series A Series B Series C Series D Series E ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW 35 18 10 14 12 5 3 3 $0-1 million $1-3 million $3-5 million $5-10 million $10-25 million $25-50 million $50-$100 million $100+ million 9 22 11 14 17 11 11 5 $0-1 million $1-3 million $3-5 million $5-10 million $10-25 million $25-50 million $50-$100 million $100+ million
  10. 10. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 LOCATION MEAN BASE SALARY 10 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW By function & location ($AUD ex super) TAS WA NSW VIC QLD NT SA ACT $211,350 $210,041 $192,864 $190,205 $194,250 $200,309 $194,884 $168,651 $142,937 $135,771 $127,779 $132,389 $132,525 $117,232 $126,968 $110,193 $140,663 $123,710 $122,970 $120,597 $104,539 $85,418 $141,178 $133,068 $122,116 $127,335 $126,841 $113,699 $122,698 $120,599 $126,635 $126,885 $116,579 $129,219 $118,279 $120,000 $118,471 $118,130 $122,165 $114,816 $113,344 $110,152 $110,540 $108,503 $106,295 $111,358 $109,765 $111,612 $109,717 $107,630 $112,255 $109,782 $108,237 $109,349 $109,209 $102,350 $103,956 $106,600 $102,622 $102,426 $100,687 $104,905 $102,376 $87,448 $99,651 $96,591 $93,015 $97,433 $81,718 $84,585 $77,570 $76,847 $74,006 EXECUTIVE GENERAL MANAGEMENT RESEARCH & ENGINEERING PRODUCT DATA & DELIVERY IT OPERATIONS DESIGN HR FINANCE MARKETING SALES CUSTOMER FUNCTION (EXPERIENCE + SUPPORT + SERVICE)
  11. 11. ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW As team size grows, role types diversify with small teams mostly comprised of executive and engineering roles followed by operations roles. Larger teams tend to include business support and operational staff. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 TEAM MAKEUP BY CAPITAL RAISED 11.1 5.5 2.9 3.1 2.9 32.7 35.5 38.3 24.1 36.5 10.8 16.4 14.6 16.5 7 8.8 7.5 9.5 11.7 4.8 8 7 9.8 7.9 10.5 3.4 4 2 3.2 7.6 5.7 3.1 2.5 3.5 4.6 3.4 2.8 4.5 5.2 4.3 2.1 2.8 3.9 3.5 5.3 7.2 7.4 5.1 5.9 5.3 4.9 6.6 4.8 12.3 7.8 2.1 1.5 2.2 2.9 4.3 Executive General Management Engineering Sales Customer Operations Data Design Finance HR Marketing Product IT $0-3 million $3-10 million $10-25 million $25-50 million $50+ million 11
  12. 12. ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 THE TALENT SHORTAGE Border conditions, adapting to a remote working environment and general cash constraints are all contributing challenges faced by startups seeking to recruit talent and never more-so than for roles in high demand, such as Engineering, Product and globally experienced technology executives where current market conditions see top candidates securing their next role within 10 working days. Technology is currently Australia’s third largest industry and is well on its way to become the largest by 2030. As the ecosystem continues to grow, companies and industry can place focus on: • Hiring talent from outside the ecosystem • Strategies to attract talent to Australia • Upskilling and reskilling of Australia's vast non-tech talent pool • Cater for quicker hiring cycles "RECENT EXPERIENCE IS HIGHLIGHTING THAT SOME SALARIES HAVE INCREASED BY AS MUCH AS 30% IN THE LAST 12 MONTHS. AND WE ARE STARTING TO SEE US SALARY AND EQUITY TRENDS EMERGE IN THE LOCAL MARKET. THE AUSTRALIAN ECOSYSTEM IS RELATIVELY YOUNG COMPARED TO THE US, BUT THINGS ARE EVOLVING AND MATURING RAPIDLY, WHICH IS EXCITING TO SEE" The market is so competitive that very few companies can afford to wait 6 months for the perfect candidate. Where possible, we now hire for growth and potential which opens the door to a broader, more diverse range of potential candidates, but also reduces the constraints of scaling when we can't always compete on compensation. As a smaller company, it also forces us to focus on meaningful "human first" cultural differences. 12 Matthew O’Leary, Chief People Officer at Zepto says: 97% Have hired in the last 12 months, with half agreeing that recruitment has been more challenging over the past 18 months 80% Employment Offers Accepted 4 2% Agree recruitment has m been ore difficult to fill roles in the past 18 months 31% of roles have taken more than 60 days to hire
  13. 13. BAY AREA PERSPECTIVE what can the Australian ecosystem expect to come? WHAT IT MEANS FOR THE AUSTRALIAN TECH TALENT POOL? Post-pandemic, we’ve seen more talent leaving the San Fransisco Bay Area to other parts of the US, and Australia has a big opportunity to access this talent pool. “The pandemic changed the dynamics of talent pools. They were historically constrained to office locations but the shift to remote work has unlocked massive talent pools right across the US and we’re starting to see this play out in Australia on a more global scale.” Justin is a strong advocate for dramatically increasing the Australian tech talent pool. Not through a single solution but a combination of bringing Australian talent back home, attracting overseas companies and talent, encouraging transitions across industries, and a stronger pipeline from universities. Attracting tech talent at the company-level has also changed over the past few years. WE’VE SEEN A SHIFT FROM THE PERKS AND BENEFITS ‘ARMS RACE’ TOWARDS MORE FUNDAMENTAL REASONS WHY PEOPLE ARE ATTRACTED TO COMPANIES: THEIR VISION, MISSION AND TREATING THEM AS A HUMAN IN EVERY SENSE. SHIFTING SANDS IN BAY AREA JUSTIN’S KEY PERSPECTIVES ON THE BAY AREA: • Rocketing company valuations and growth is driving huge amounts of job creation • Increasing STEM graduates and talent flow has helped reduce the talent gap, but it’s still a candidate’s market in key functions • It’s resulted in upward pressure on compensation, particularly salary and equity. JUSTIN ANGSUWAT CHIEF PEOPLE OFFICER AN ALTERNATIVE VIEW ON EQUITY Justin’s view is that equity is usually dramatically discounted in the eyes of employees. He says: “If all goes well, employees have a huge financial upside through equity — it can be life changing. But equity programs haven't always been designed in employee-first ways, and are rarely supported with the education needed for employees to fully benefit from it” For example, in some cases, employees haven’t been able to exercise options because of the tax implications of a rocketing company valuation, or have left earned options on the table when they left a company. But Justin is optimistic in the progress, and an advocate for continued change: “Examples of positive shifts in equity programs have been giving employees more ways to not leave equity on the table when they leave their company, or even changing the norm of 25% vesting each year for four years, to being more front-loaded — so employees see a lot more value, much earlier.” Although companies might be limited by how much financial advice they can give to employees, Justin thinks they have a responsibility to educate, even on the basics, of equity. “It’s a stark contrast that your toaster comes with a how-to guide that can be more detailed than an equity grant that could change your life. It’s inherently addressable, and we have the opportunity and responsibility to fix this.” AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 13 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  14. 14. TRANSITIONING INTO TECH AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 MAKING YOUR SKILLS TRANSFERABLE IS A SKILL IN ITSELF Hunter has taken a “hard” skill set learned in her corporate career and adapted it for a startup environment. At Brighte she is responsible for People & Culture and Legal & Risk. She says “it’s an internal operations type role… It's definitely pulling together my legal background, my experience at Bain in leading high performing teams and solving general problems.” All the while thinking about remuneration beyond salary and how to make that work for hires. THINKING ABOUT REMUNERATION Hunter lost access to a big bonus leaving Bain and going to Future Super but essentially had a similar salary in tact. For her, this decision was offset by the ESOP opportunity. However, she notes her personal circumstances meant she didn’t need to bank on it. It was “more about being an owner in the business”and being committed to the company’s mission. “And it depends on what an individual’s personal risk appetite is and, at an average level, women have a lower risk appetite than men do. I think that's why we see a lot of men who are more willing to jump into startups than women. At my kind of age and experience level as well (speaking in averages) but caring responsibilities tend to fall to women more than men.” At Brighte, she says “it is more important for us to get the right people. And to compensate them fairly. We don’t want to narrow our talent pool to only people who are willing to take a personal hit in order to work on our mission.” As opposed to a smaller startup, where it’s almost essential to have mission driven people, because you can't always compete on salary. “It changes the way you find people.” ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW 14 KIRSTIN HUNTER CHIEF PEOPLE, LEGAL AND RISK OFFICER MY JOB AS CHIEF PEOPLE OFFICER IS FINDING THOSE PEOPLE AND FINDING A WAY TO EMPOWER THOSE PEOPLE TO MAKE A CAREER DECISION BASED ON THEIR PERSONAL VALUES. FROM CORPORATE TO STARTUP Hunter began her career in corporate law at Freehills then management consulting at Bain. She made the leap to Future Super in a late-stage co-founder/CEO role then side-stepped into the Chief People Officer role at Brighte where talent acquisition and retention are top of mind.
  15. 15. 2 REMUNERATION TABLES & COMMENTARY AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022
  16. 16. KEY FINDINGS AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 THE PURPOSE OF THIS REPORT IS TO SHOWCASE TOTAL REWARD FROM THE PRE-SEED CAPITAL STAGE AND ONWARDS When analysing and reading the tables (get yourself your preferred beverage) please consider the following in addition to market and relevant variables when considering remuneration bands; • The majority of senior positions may own significant equity that is not reflected in this data, increasing their overall remuneration. • Remuneration bands only take into account the grant of options at the time of data capture. • The median salaries within the report are a reflection of the current stage of the business. To secure the best talent, we suggest budgeting around 20% above the salaries listed. • In the $0-5m capital stage startups, position titles vary significantly. For e.g. junior roles are often afforded more senior titles than would be the case in corporate roles as such we found some ‘C’ suite titles early employees were paid less than $80,000 base. • For consistency, in some cases we have grouped Vice President, ‘Chief’, and ‘Head of’ roles into one category, denoting them the most senior positions within the business. • Some Executive Positions with significant equity (10%+) are likely to have acted in a Founder / Co-Founder capacity. • All base salaries mentioned are exclusive of superannuation. 16 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW INTERPRETING THE DATA AND KEY FINDINGS
  17. 17. REMUNERATION AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 17 EXECUTIVE GENERAL MANAGEMENT REMUNERATION Base salaries for executives employed early in a business are low and increase significantly through the funding stages. It is not uncommon for the CEO to be paid more than the Founder. $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation Chief Executive Officer $42,000-$365,297 -$ 152,982 - 0.0%-0.74% 0.07074% 26.83% Managing Director $100,000-$200,000 -$ 150,000 - 0.0%-0.12% 0.06% 50.0% General Manager $60,000-$200,000 -$ 130,000 - 0.0%-10.0% 1.66833% 33.33% Founder/Co-Founder $42,000-$294,620 -$ 117,875 - 0.0%-0.4% 0.09653% 27.27% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation Chief Executive Officer $100,000-$390,000 -$ 213,191 - 0.0%-100.0% 7.30972% 53.85% Founder/Co-Founder $165,000-$250,000 -$ 205,000 - 0.0%-0.08% 0.03019% 66.67% General Manager $150,000-$207,000 -$ 178,500 - 0.0%-0.24% 0.12106% 100.0% $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation Founder/Co-Founder $200,000-$449,156 -$ 289,879 - 0.0%-0.0% 0.0003% 42.86% Chief Executive Officer $120,000-$610,000 -$ 275,384 - 0.0%-0.13% 0.01827% 48.15% Country Manager $227,378-$233,580 -$ 231,513 - 0.15%-0.15% 0.15% 100.0% General Manager $150,000-$400,000 -$ 228,156 - 0.0%-0.15% 0.03812% 77.78% ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  18. 18. FOUNDER REMUNERATION VALUATION BUSINESS SIZE (%) FUNDING STAGE CAPITAL RAISED $0-3 million $3-10 million $10-50 million $50+million 0 50000 100000 150000 200000 250000 $125,000 $180,000 $256,818 $272,310 $0-3 million $3-10 million $10-50 million $50+million 0 50000 100000 150000 200000 250000 $90,000 $156,165 $200,000 $250,000 <$20m $20-$50 million $50-$100 million $100+ million 0 50000 100000 150000 200000 250000 $95,000 $165,000 $180,000 $250,000 Pre-Seed Seed Series A Series B Series C+ 0 50000 100000 150000 200000 250000 $68,000 $140,000 $170,000 $250,000 $250,000 Founder salaries increase as companies move through each growth phase. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 18 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  19. 19. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 GLOBAL TALENT The high price of global talent PACKAGES MAY DIFFER WHEN RECRUITING OVERSEAS TALENT It’s important to note how packages may differ when recruiting overseas talent and that budget alignment is critical in the ecosystem. It's not as simple as converting currencies and packages vary significantly overseas. Some ecosystems offer significant opportunity to find excellent scar tissue and value for money whilst others can be very out of sync. We have outlined salary ranges for the most common roles Australian companies hire when entering the UK and US (non San Francisco) which tend to align to Series A, B and C round companies. Please note this is a healthy starting point and packages need to cover larger numbers through "total reward". Covid-19 has showcased the effectiveness of remote working and remote hiring but also reprioritized for some what is important in life. As such we have seen an unprecedented geographical movement of talent with Aussies returning home but also local talent hired by US technology companies into the US office on US time zones. As the trend of globally workforce distribution and movement accelerates in line with the success of Australian companies local businesses are likely to find ourselves competing with global technology giants for talent both locally and abroad. The impact of this trend cannot be underestimated and as a result it is important to begin to think about salary benchmarking based on global trends and not just Australian data. THE ADVANTAGES OF THIS APPROACH ARE • You can ensure you are competitive globally • You give yourself the best chance of securing the very best person • You have access to talent that has “done it before” AS AUSTRALIAN TECHNOLOGY COMPANIES CONTINUE TO GO FROM STRENGTH TO STRENGTH THEY ARE LIKELY TO FIND THEMSELVES COMPETING MORE AND MORE WITH GLOBAL TECHNOLOGY GIANTS IN THE WAR FOR TALENT. US BASED TALENT CRO / Country Lead: $350,000 - $500,000 (USD) base only COO: $350,000 - $500,000 (USD) base only VP Engineering: $300,000 - $350,000 (USD) base only 19 UK BASED TALENT CRO/Country Lead/Regional Lead: £180,000 - £250,000 base only COO: £180,000 - £250,000 base only VP Engineering: £180,000 - £220,000 base only ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  20. 20. COUNTRY MANAGER ROLES AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 IN 2021 WE SAW A HUGE AMOUNT OF INTEREST FROM OVERSEAS SOFTWARE BUSINESSES IN SETTING UP OFFICES IN AUSTRALIA. THE RANGE OF BUSINESSES INCLUDED; FINTECH, MEDTECH, SAAS AND ECOMMERCE. BASED ON CONVERSATIONS WE ARE HAVING, WE ANTICIPATE THIS TREND WILL CONTINUE FOR THE FORESEEABLE FUTURE Australia and Australia-Pacific-Japan country manager roles Data in this survey is primarily sourced from local Australian companies and the salary ranges here reflect the market for the majority of roles required by foreign companies operating in the market. However, salary data for Country Manager roles of foreign companies entering Australia has not been fully captured in the report. From our experience over 2020/21, we have found the following key data points for the Australian Country Manager role. ‘SCAR TISSUE’ a proven leader across Australia and / or the APJ region Base range: $300,000 - $500,000 Average Base salary: $350,000 Bonus: 50% of base salary LTI / shares: 100% of base salary yearly (generally made up of stock and bonus) ‘STEP UP’ into first Country Manager role Base range: $180,000 - $280,000 Average Base salary: $280,000 Bonus: 50% of base salary LTI / shares: 100% of base salary yearly (generally made up of stock and bonus) HUGO BIEBER PARTNER 20 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  21. 21. PRODUCT “The biggest gap I am seeing in market is the development of commercial understanding particularly in Senior Product Managers. Commercial understanding is about full business modelling - who are the customers? How would you sell this? And being able to model this out to secure investment. This is a key differentiating skill required in more senior strategic product management roles vs execution product focused roles. You need to be able to clearly articulate how the customer and the organisation will realise value - both in the short and long term and model it out. 2. The other interesting thing I am seeing is candidates are frustrated as they want to work for a business that “gets product” but even if a business “gets product” the education process doesn’t stop and as a product manager you still need to educate and manage stakeholder expectations. 3. The last interesting piece for me is “What does it mean to scale a product across multiple customers?”. The link between sales, growth and product is paramount and I feel like too many organisations are not taking into account the scaling piece early enough in the journey.” Kirsten Mann CPO Prospection $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/Head of Product $45,000-$220,000 -$ 149,733- 0.0%-10.0% 1.67756% 41.67% Senior Product Manager $100,000-$145,000 -$ 127,167- 0.0%-0.0% 0.0009% 33.33% Product Manager $95,000-$140,000 -$ 119,375- 0.0%-10.0% 5.08875% 87.5% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Product O $175,000-$250,000 -$ 212,500- 0.13%-0.13% 0.1293% 100.0% VP/Head of Product $130,000-$250,000 -$ 187,800- 0.0%-0.01% 0.00297% 77.78% GM, Product $160,000-$227,273 -$ 181,318- 0.0%-13.92% 4.6831% 75.0% Senior Product Manager $140,000-$190,000 -$ 157,000- 0.0%-0.0% 0.00067% 100.0% Product Manager $87,273-$175,000 -$ 127,388- 0.0%-0.0% 0.00044% 27.78% Product Owner $85,000-$120,000 -$ 101,250- 0.0%-0.0% <0.0001% 25.0% Junior Product Manager $72,500-$110,000 -$ 95,838- 0.0%-0.35% 0.26563% 87.5% Product Analyst $75,000-$80,000 -$ 77,500- 0.0%-0.0% 0.0% 0.0% $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Product O $250,000-$350,000 -$ 296,200- 0.01%-0.85% 0.29317% 100.0% VP/Head of Product $100,000-$256,432 -$ 205,344- 0.0%-0.15% 0.01756% 70.59% GM, Product $140,000-$250,000 -$ 190,000- 0.0%-0.29% 0.08676% 71.43% Senior Product Manager $110,000-$200,000 -$ 159,717- 0.0%-0.52% 0.03761% 68.0% Product Owner $90,000-$165,000 -$ 128,462- 0.0%-0.15% 0.03633% 46.15% Product Manager $62,500-$185,000 -$ 125,585- 0.0%-0.33% 0.02127% 58.0% Junior Product Manager $60,000-$115,000 -$ 82,156- 0.0%-0.01% 0.00097% 56.25% Product Analyst $45,000-$115,000 -$ 70,938- 0.0%-0.03% 0.00204% 18.75% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 21 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  22. 22. "Increasingly the stand out businesses in the deep tech market are hiring AI and data specialists at an early stage to augment growth. Specialists in these fields are looking to the opportunities our startup businesses present to leverage and build on their skills and knowledge whilst contributing to solving the kinds of global challenges Main Sequence is focused on solving. This talent is highly sought after and so, are commanding market competitive salaries" Nicola Hutton Head of People at Main Sequence $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation VP/Head of Data $175,938-$294,620 -$ 216,853- 0.0%-0.0% 0.0% 0.0% Senior Data Scientist $115,455-$118,182 -$ 116,818- 0.0%-0.01% 0.0035% 100.0% Data Engineer $63,636-$140,000 -$ 87,927- 0.0%-0.0% 0.0% 0.0% Data Scientist $81,278-$86,591 -$ 83,935- 0.0%-0.0% 0.00089% 100.0% Data Analyst $59,361-$110,000 -$ 80,215- 0.0%-0.0% 0.0008% 25.0% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation Head of AI $130,000-$187,500 -$ 158,750 - 0.01%-0.01% 0.01163% 100.0% Insights & Analytics Manager $120,000-$180,000 -$ 145,000 - 0.0%-0.0% 0.00089% 100.0% Data Engineer $80,000-$177,000 -$ 123,639 - 0.0%-0.0% 0.00024% 66.67% Data Scientist $75,000-$160,000 -$ 115,833 - 0.0%-0.0% 0.00022% 33.33% AI Engineer $77,500-$100,000 -$ 96,250 - 0.0%-0.01% 0.00436% 100.0% Data Analyst $60,000-$130,000 -$ 91,875 - 0.0%-0.0% <0.0001% 37.5% $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation Head of AI $165,000-$500,000 -$ 271,250 - 0.0%-0.02% 0.00526% 100.0% VP/Head of Data $150,000-$289,699 -$ 201,288 - 0.0%-0.15% 0.01967% 60.0% Senior AI Specialist $150,000-$177,500 -$ 163,750 - 0.0%-0.0% 0.00054% 100.0% AI Specialist $100,000-$190,000 -$ 152,167 - 0.0%-0.0% 0.00021% 83.33% AI Engineer $85,000-$179,182 -$ 143,827 - 0.0%-0.01% 0.00122% 30.0% Data Analytics Lead $130,000-$150,000 -$ 141,667 - 0.0%-0.0% 0.0% 0.0% Senior Data Scientist $100,700-$175,000 -$ 135,888 - 0.0%-0.0% 0.00196% 75.0% Data Engineer $95,000-$170,000 -$ 134,208 - 0.0%-0.11% 0.00857% 28.57% Data Scientist $87,500-$160,000 -$ 123,140 - 0.0%-0.0% 0.00031% 42.86% Insights & Analytics Manager $82,136-$166,487 -$ 121,301 - 0.0%-0.14% 0.0085% 6.25% Data Analyst $62,000-$140,000 -$ 98,874 - 0.0%-0.0% 0.00014% 53.85% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 22 DATA SCIENCE ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  23. 23. THE FUTURE OF ENGINEERING ENGINEERING TALENT POOL Islam says if we fast-forward the industry 5-10 years we will see less demand for developers to understand computing, network, messaging and databases. It will be all about APIs and platforms such as force.com’s developer environment, resulting in increasing abstraction. He predicts: • Demand for engineers will outpace the number of engineers available • Companies will hire less skilled, less experienced engineers to do complex tasks • Companies will scale faster as a result of an influx of low code, no code tools, more reliance on automation and out of the box solutions will force innovation in other areas HIRING AND RETAINING TALENT Islam’s belief is that without fundamentals around provision of resources, people management, growth and an ability to foster innovation, startups will see major attrition or inability to secure candidates, who are no longer seeking out perks but looking for (and avoiding) gaps in management and support. He predicts: • Providing the right resources (budget, infrastructure and tools) will be essential, especially if you’re asking people to work in a scrappy environment • Value added perks will become less important comparative to flexible (remote and in-office) work options • Leadership training will need to be deliberate and not accidental. WE'RE NOT ASKING THOSE INDIVIDUALS TO GO ALL THE WAY DEEP IN THE CODE BUT.... TO TAKE ONE STEP FORWARD, ONE STEP DEEPER IN THE STACK. I DO BELIEVE IT'S GOING TO BE A GRADUAL CHANGE... FOLLOWED BY COMPENSATION, BY TECHNOLOGY CHANGES, NEW CURRICULUMS BEING OFFERED AND NEW WAYS TO GET INTO THE INDUSTRY. ZAK ISLAM CHIEF TECHNOLOGY OFFICER If you take a look at the industry today, comp has become incredibly competitive. So that's table stakes. But beyond that, I think culture is going to be the next most important thing that candidates are going to be looking for…. The two most important things are tools that you provide that enable innovation in your culture and the second is your management team and how they’re able to connect the strategy to the operational plans. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 23 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  24. 24. RESEARCH & ENGINEERING $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Head of / VP - Engineering $48,000-$280,000 -$ 154,221 - 0.0%-10.0% 1.04079% 43.33% Senior Engineer Mobile $145,000-$155,000 -$ 150,000 - 0.0%-0.0% 0.0% 0.0% Senior Developer $125,000-$168,000 -$ 144,333 - 0.0%-0.0% 0.0% 0.0% Senior DevOps Engineer $113,636-$175,000 -$ 142,176 - 0.0%-0.0% 0.0005% 50.0% Senior Front End Engineer $95,000-$162,750 -$ 136,799 - 0.0%-0.01% 0.00028% 5.0% Technical Lead / Lead Engineer $70,000-$180,000 -$ 133,650 - 0.0%-10.0% 1.50021% 72.22% Senior Backend Engineer $86,364-$160,000 -$ 130,184 - 0.0%-10.0% 2.00391% 50.0% Engineering Manager $90,000-$160,000 -$ 127,370 - 0.0%-3.24% 0.46605% 57.14% ware Engineer $89,545-$164,384 -$ 122,561 - 0.0%-0.12% 0.0213% 75.0% Mid Backend Engineer $70,000-$160,000 -$ 110,636 - 0.0%-10.0% 3.57454% 70.59% Mid Front End Engineer $70,000-$140,000 -$ 109,449 - 0.0%-10.0% 2.77951% 44.44% ware Engineer $80,000-$141,523 -$ 101,743 - 0.0%-0.0% 0.00047% 30.0% Developer $87,000-$120,000 -$ 99,000 - 0.0%-0.0% 0.0% 0.0% Senior QA / Test Engineer $75,000-$110,000 -$ 92,500 - 0.0%-0.0% 0.0% 0.0% Junior Engineer Mobile $60,000-$120,000 -$ 90,000 - 0.0%-0.0% 0.00227% 50.0% Junior Front End Engineer $62,400-$100,000 -$ 87,925 - 0.0%-10.0% 5.16262% 75.0% QA / Test Engineer $60,000-$120,000 -$ 87,071 - 0.0%-10.0% 4.44467% 66.67% DevOps Engineer $80,000-$90,000 -$ 83,840 - 0.0%-0.0% 0.00285% 66.67% Hardware Engineer $72,000-$82,215 -$ 77,108 - 0.0%-0.0% 0.0% 0.0% Junior Backend Engineer $55,000-$100,000 -$ 73,869 - 0.0%-10.0% 1.26278% 50.0% ware Engineer $62,557-$84,545 -$ 71,447 - 0.0%-0.12% 0.00848% 81.25% This year we renamed the Engineering category to “Research and Engineering”. Whilst the majority of positions were typical roles found in software teams the changing nature of the Australian startup landscape means a growing emphasis on non-software positions. These are roles focused on bringing a product to market, without theproduct necessarily being software. Some of these new role categories include; • Hardware Engineers • Biomedical Engineers • Mechanical Engineers • Engineer (Manufacturing) This exciting shift in Engineering resources bringing products to market will hopefully be reflected in a greater number of non-software success stories over the coming years! AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 24 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  25. 25. Research & Engineering continued On average Research and Engineering based positions make up the bulk of workforces. This function often constitutes approximately 30% of the workforce. This reflects a strong affinity towards Product Led Growth based thinking and therefore the need to continually invest in maturing and building out product. Based on the data we have collected we estimate the mean salaries are approximately 60% of what similar positions would be paid in a top global ecosystem such as San Francisco. $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Architect $195,000-$300,000 -$ 247,500 - 0.0%-0.0% 0.0% 50.0% Chief Technology O $65,000-$280,000 -$ 195,661 - 0.0%-13.92% 0.74993% 59.09% Head of / VP - Engineering $100,000-$255,000 -$ 177,769 - 0.0%-0.13% 0.01658% 76.92% Senior DevOps Engineer $135,000-$190,000 -$ 163,000 - 0.0%-0.33% 0.08345% 100.0% Engineering Manager $70,000-$200,000 -$ 153,491 - 0.0%-0.02% 0.00227% 68.18% Technical Lead / Lead Engineer $95,000-$185,000 -$ 152,847 - 0.0%-0.35% 0.01606% 72.22% Senior Backend Engineer $100,457-$170,000 -$ 142,380 - 0.0%-0.35% 0.02247% 72.97% Senior Front End Engineer $100,000-$175,000 -$ 141,333 - 0.0%-0.01% 0.00121% 73.33% ware Engineer $100,000-$185,000 -$ 140,190 - 0.0%-0.01% 0.00087% 56.52% Scrum Master $110,000-$182,000 -$ 137,667 - 0.0%-0.0% 0.00017% 66.67% Senior Hardware Engineer $128,520-$145,000 -$ 136,760 - 0.0%-0.0% <0.0001% 50.0% Senior QA / Test Engineer $100,457-$175,000 -$ 131,151 - 0.0%-0.0% 0.0002% 50.0% Senior Engineer Mobile $90,000-$165,000 -$ 131,000 - 0.0%-0.0% 0.0% 40.0% Mid Engineer Mobile $118,000-$135,000 -$ 126,500 - 0.0%-0.0% 0.0% 0.0% Engineer (Manufacturing) $120,000-$130,000 -$ 125,000 - 0.0%-0.13% 0.06465% 50.0% Developer $90,000-$145,000 -$ 121,418 - 0.0%-0.0% 0.00106% 75.0% ware Engineer $78,000-$135,000 -$ 117,000 - 0.0%-0.0% 0.00095% 25.0% Mid Backend Engineer $75,000-$150,000 -$ 110,887 - 0.0%-0.48% 0.04427% 66.67% Technical Writer $105,000-$115,000 -$ 110,000 - 0.0%-0.0% 0.0% 0.0% DevOps Engineer $65,000-$160,000 -$ 106,570 - 0.0%-0.0% 0.0% 12.5% Mid Front End Engineer $82,500-$126,000 -$ 104,522 - 0.0%-0.13% 0.01457% 66.67% Researcher Biomedical $90,000-$100,000 -$ 98,000 - 0.13%-0.13% 0.1293% 100.0% Junior Engineer Mobile $65,000-$130,000 -$ 97,500 - 0.0%-0.0% 0.0005% 50.0% Mechanical Engineer $70,000-$120,000 -$ 95,000 - 0.0%-0.0% 0.0% 0.0% Mid Hardware Engineer $40,175-$130,000 -$ 92,035 - 0.0%-0.13% 0.02649% 40.0% Biomedical Engineer $60,000-$100,000 -$ 92,000 - 0.0%-0.13% 0.10344% 80.0% QA / Test Engineer $65,000-$130,000 -$ 90,803 - 0.0%-0.0% <0.0001% 50.0% ware Engineer $63,360-$110,000 -$ 88,565 - 0.0%-0.0% 0.00034% 37.5% Junior Hardware Engineer $50,000-$100,000 -$ 81,429 - 0.0%-0.13% 0.02218% 57.14% Junior Backend Engineer $60,000-$105,000 -$ 78,901 - 0.0%-0.79% 0.1324% 70.0% Junior Front End Engineer $55,000-$97,125 -$ 75,219 - 0.0%-0.0% 0.00015% 42.11% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 25 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  26. 26. Research & Engineering continued With the pressure on wage growth for individual contributor (IC) positions there is evidence that a “levelling” is occurring where the IC positions are paid on par with the person who is directly managing them. If we directly compare salary ranges for “Engineering Managers” versus “Technical Lead/Lead Engineer” the range and mean is slightly higher for Technical Lead at $0-5 million and $25million plus. Whilst we do not believe one years worth of data is enough to definitively call this “levelling” a “trend”. It is possible that over the next few years businesses may need to rethink the traditional hierarchy of pay where the “manager” is paid more than the “employee”. $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Technology O $180,000-$350,000 -$ 261,693- 0.0%-0.97% 0.11663% 71.43% Chief A chitect $210,000-$250,000 -$ 223,333- 0.0%-0.81% 0.40625% 66.67% $135,000-$335,091 -$ 218,879- 0.0%-0.53% 0.03864% 76.0% Technic $115,000-$233,546 -$ 170,060- 0.0%-0.77% 0.04858% 68.57% $140,000-$168,950 -$ 154,475- 0.0%-0.0% 0.0007% 50.0% g $75,000-$216,000 -$ 153,655- 0.0%-0.15% 0.00767% 38.1% evOp $90,000-$180,000 -$ 151,792- 0.0%-0.14% 0.00998% 64.71% k $73,000-$188,000 -$ 150,603- 0.0%-0.38% 0.02501% 70.59% on $121,500-$175,000 -$ 149,894- 0.0%-0.86% 0.07774% 53.57% g $130,000-$180,000 -$ 149,000- 0.0%-0.0% 0.00048% 75.0% wa $105,023-$201,000 -$ 145,293- 0.0%-0.01% 0.00091% 30.19% on $72,800-$185,000 -$ 143,767- 0.0%-0.0% 0.00027% 29.41% st $100,000-$167,000 -$ 143,400- 0.0%-0.0% 0.0% 20.0% dwa $120,000-$145,000 -$ 134,313- 0.0%-0.0% 0.00041% 85.71% Tes $110,000-$145,000 -$ 127,568- 0.0%-0.0% 0.0% 23.08% evOp $65,000-$185,000 -$ 126,568- 0.0%-0.0% 0.0% 16.67% wa $110,000-$140,909 -$ 121,858- 0.0%-0.0% 0.00016% 21.74% Ha dwa $85,000-$180,000 -$ 120,455- 0.0%-0.0% 0.0% 0.0% st ve $110,000-$135,000 -$ 118,333- 0.0%-0.0% 0.0% 66.67% k $61,817-$150,000 -$ 117,676- 0.0%-0.13% 0.00551% 58.62% dwa $60,000-$205,000 -$ 115,333- 0.0%-0.0% <0.0001% 23.53% f $75,000-$140,000 -$ 112,897- 0.0%-0.15% 0.00517% 3.45% c Resea $75,000-$200,000 -$ 105,083- 0.0%-0.0% 0.0% 0.0% $80,000-$170,000 -$ 133,000- 0.0%-0.0% <0.0001% 33.3% Elect $70,000-$125,000 -$ 102,600- 0.0%-0.0% 0.0% 0.0% QA / Tes $75,000-$127,273 -$ 100,379- 0.0%-0.14% 0.02254% 16.67% on $75,000-$125,000 -$ 97,333- 0.0%-0.14% 0.04652% 66.67% k $75,000-$130,000 -$ 90,050- 0.0%-0.0% 0.00022% 20.0% wa $58,000-$109,589 -$ 89,962- 0.0%-0.0% <0.0001% 11.11% dwa $60,000-$95,000 -$ 78,923- 0.0%-0.0% <0.0001% 50.0% Technical W t $64,423-$86,000 -$ 76,808- 0.0%-0.0% 0.0% 33.33% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 26 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  27. 27. DESIGN As funding increases we found salaries also increased. This was best represented by the mean salary for VP/Head of Design increasing from $130,883 within $0-5m companies to $176,767 within $5-25m companies and then $167,000 within $25m+ companies. Companies with revenue beyond $25m a new role is then introduced “Chief Design Officer” where the mean salary increases to $265,000 base. $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/ Head of Design $90,000-$182,648 -$ 130,883 - 0.0%-0.0% 0.00012% 33.33% Senior UX Designer $118,721-$150,000 -$ 128,059 - 0.0%-0.0% 0.0% 0.0% UX Designer $60,000-$130,000 -$ 103,265 - 0.0%-10.0% 4.0% 40.0% Senior Product Designer $92,500-$110,000 -$ 101,250 - 0.0%-0.0% 0.0% 0.0% Visual designer / Inter $68,493-$89,250 -$ 79,369 - 0.0%-0.0% 0.0% 0.0% Graphics / UI Design $62,273-$115,000 -$ 78,693 - 0.0%-0.18% 0.0455% 50.0% Product Designer $60,000-$88,000 -$ 70,167 - 0.0%-10.0% 3.4% 66.67% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/ Head of Design $140,000-$220,000 -$ 176,767 - 0.0%-0.0% 0.00119% 100.0% Senior Product Designer $110,000-$142,500 -$ 126,071 - 0.0%-0.0% 0.00033% 71.43% Senior UX Designer $100,000-$132,000 -$ 116,000 - 0.0%-0.0% 0.0% 50.0% UX Designer $80,000-$110,000 -$ 92,500 - 0.0%-0.0% 0.00015% 25.0% Product Designer $70,000-$100,000 -$ 82,000 - 0.0%-0.0% 0.0% 20.0% Graphics / UI Design $73,059-$92,000 -$ 79,683 - 0.0%-0.0% 0.0% 25.0% Visual designer / Inter $50,000-$110,000 -$ 75,000 - 0.0%-0.0% 0.0% 100.0% $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Design O $250,000-$280,000 -$ 265,000 - 0.0%-0.0% 0.0% 50.0% VP/ Head of Design $137,000-$185,000 -$ 167,000 - 0.0%-0.0% 0.0015% 83.33% UX Research $130,000-$160,000 -$ 146,250 - 0.0%-0.0% 0.0% 0.0% Senior Product Designer $120,000-$172,727 -$ 144,476 - 0.0%-0.23% 0.01764% 40.0% Senior UX Designer $113,006-$170,000 -$ 135,715 - 0.0%-0.0% 0.0009% 57.14% Lead Product Designer $120,000-$145,000 -$ 132,500 - 0.0%-0.0% 0.0% 0.0% UX Designer $60,000-$150,000 -$ 122,070 - 0.0%-0.0% 0.0% 0.0% Product Designer $41,212-$145,000 -$ 106,039 - 0.0%-0.0% 0.00055% 63.64% Graphics / UI Design $74,000-$100,000 -$ 89,032 - 0.0%-0.0% <0.0001% 33.33% Visual designer / Interaction designer $55,000-$110,000 -$ 86,667 - 0.0%-0.0% 0.0% 33.33% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 27 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  28. 28. SALES REMUNERATION TAKE THE TIME TO REALLY UNDERSTAND YOUR FUNNEL AND THE SPECIALISATION NEEDED, THEN BUILD YOUR COMPENSATION PLAN ACCORDINGLY… IT’S IMPORTANT TO HAVE A BALANCE BETWEEN COMMISSION OR BONUS STRUCTURES TO REALLY HELP DRIVE OUTPUT LEVELS For High Performing Sales Teams Having moved from North America, Chuck notes one of the starkest differences in the Australian attitude to compensation, is risk appetite. In the US, the sales mentality began in part from traditional job industries like hospitality where remuneration is based highly on tips with little to no base salary. In most cases in the US, the percentage of total package value put towards commission is higher than what the average is open to. With Australia becoming a more globalised market, the attitude to risk and cultural mindset around self-driven reward is changing though overall, the high cost of living requires a higher minimum wage safety net for most employees. MAJOR TAKEAWAYS FOR BUILDING REMUNERATION PACKAGES His major takeaways for building remuneration packages for high performing sales teams are: • Build remuneration plans based on the KPI metrics that you really want to drive as a business. • Map out your funnel and the different activities you're really trying to drive. • Every sales process has a very different set of funnels in terms of lead gen, account management, sales and close order processes - so the complexity of the sales channel isn’t always a one size fits all. • Consider whether you need a hybrid sales team, or whether you need specialist sales roles to drive the outcomes you seek. Importantly, Chuck notes that these decisions should not be made within the silo of management, rather it should be a consultative process with the sales team. You need to make sure your senior leaders at the very top have ‘full company picture’ thinking. You can achieve this with a mixture of bonus elements for direct team results as well as company results. JASON CHUCK COO AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 28 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  29. 29. SALES It is important to note that the data reflected here constitutes base salary and ESOP but excludes any short term or long term cash bonus. Sales positions are typically remunerated and incentivised through a generous bonus scheme that is based on achieving key revenue based targets. These bonus schemes can range from about 30% of base salary all the way up to 100% of base salary (or more). When hiring sales positions candidates will often refer to their salary being a 50-50 or a 60-40 split - this refers to the ratio of base salary to bonus. $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/Head of Sales $97,000-$420,000 -$ 179,235 - 0.0%-10.0% 1.8889% 52.94% Sales Opera $70,000-$120,000 -$ 95,500 - 0.0%-0.0% 0.0% 0.0% Sales Developme Represe a ve $55,000-$154,000 -$ 95,200 - 0.0%-10.0% 4.28571% 46.67% P rship ger $75,000-$120,000 -$ 91,888 - 0.0%-10.0% 2.5% 25.0% s ger $76,000-$95,000 -$ 85,500 - 0.0%-10.0% 5.00058% 100.0% evelopme ger $75,000-$120,000 -$ 91,888 - 0.0%-10.0% 2.5% 25.0% ger $50,000-$85,000 -$ 70,000 - 0.0%-1.9% 0.66367% 66.67% x ve $55,000-$100,000 -$ 67,958 - 0.0%-0.1% 0.00833% 8.33% s s $60,000-$65,000 -$ 61,875 - 0.0%-0.0% 0.0% 0.0% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Commer $185,400-$220,000 -$ 202,700 - 0.01%-0.01% 0.00845% 100.0% Chief Rev $145,000-$250,000 -$ 197,500 - 0.0%-0.0% 0.0% 50.0% Head of Sales/Commer $168,000-$230,000 -$ 192,667 - 0.0%-0.0% 0.00057% 66.67% VP/Head of Sales $145,000-$210,000 -$ 179,912 - 0.0%-0.01% 0.00234% 57.14% Pr $90,000-$181,000 -$ 143,250 - 0.0%-0.0% 0.00021% 50.0% s $100,000-$150,000 -$ 127,000 - 0.0%-0.13% 0.03232% 40.0% ger $69,000-$170,000 -$ 115,248 - 0.0%-0.13% 0.01321% 60.0% x ve $65,000-$165,000 -$ 107,944 - 0.0%-0.0% <0.0001% 20.0% P rship ger $60,000-$210,046 -$ 99,405 - 0.0%-0.0% 0.00033% 28.57% $65,000-$130,000 -$ 90,000 - 0.0%-0.13% 0.0431% 50.0% evelopme ger $60,000-$210,046 -$ 99,405 - 0.0%-0.0% 0.00033% 28.57% s ger $55,000-$150,000 -$ 87,402 - 0.0%-0.13% 0.01338% 51.85% ger $60,000-$120,000 -$ 79,231 - 0.0%-0.0% 0.0% 23.08% $68,182-$90,100 -$ 70,844 - 0.0%-0.0% <0.0001% 19.35% Sales Developme Represe a ve $50,000-$130,000 -$ 66,635 - 0.0%-0.0% <0.0001% 4.76% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 29 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  30. 30. $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Revenue O $127,500-$350,000 -$ 236,250 - 0.0%-0.01% 0.00459% 83.33% VP/Head of Sales $135,000-$270,000 -$ 194,500 - 0.0%-0.08% 0.01271% 70.0% Head of Sales/Comme $160,000-$200,000 -$ 183,250 - 0.0%-0.0% 0.00076% 50.0% Head of Cust $120,000-$206,279 -$ 166,416 - 0.0%-0.15% 0.03852% 80.0% P $96,000-$180,000 -$ 132,200 - 0.0%-0.0% 0.0% 20.0% Sales Manag $70,000-$182,016 -$ 122,468 - 0.0%-0.04% 0.00442% 73.33% P ships Manag $70,000-$190,353 -$ 120,280 - 0.0%-0.0% 0.00039% 31.25% Cust g $73,500-$160,000 -$ 106,567 - 0.0%-0.25% 0.01623% 23.33% Business Development Manag $70,000-$190,353 -$ 120,280 - 0.0%-0.0% 0.00039% 31.25% ount Manag $55,000-$137,000 -$ 104,748 - 0.0%-0.7% 0.10246% 60.0% ount Ex ve $60,000-$150,000 -$ 94,095 - 0.0%-0.0% 0.00011% 36.36% a $52,500-$120,000 -$ 83,284 - 0.0%-0.0% 0.00023% 54.55% Inside Sales $55,000-$96,000 -$ 72,710 - 0.0%-0.12% 0.01787% 50.0% Sales Development Rep esenta ve $53,000-$120,000 -$ 70,140 - 0.0%-0.0% 0.0% 23.08% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 30 Sales continued We are seeing a shortage in experienced sales executives around the $80-140k salary range and believe this will be one of the biggest challenges faced by the ecosystem in 2022 as companies strive for revenue growth. Companies should consider creating sales and graduate training programmes within their organisations to help grow the talent in this area. ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  31. 31. MARKETING $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/Head of Marke $65,000-$285,000 -$ 158,042 - 0.0%-10.0% 0.70759% 53.33% er $42,000-$140,000 -$ 91,000 - 0.0%-0.0% 0.0% 0.0% tal Marke er $65,000-$150,000 -$ 89,520 - 0.0%-0.0% 0.00015% 22.22% ca er $70,000-$90,000 -$ 80,000 - 0.0%-0.09% 0.0455% 50.0% Co te t Marketer $52,364-$100,000 -$ 73,557 - 0.0%-0.0% 0.00035% 37.5% Marke r ator $60,000-$70,000 -$ 66,333 - 0.0%-10.0% 3.33333% 33.33% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/Head of Growth $140,000-$200,000 -$ 180,000 - 0.0%-13.92% 4.64278% 100.0% VP/Head of Marke $115,000-$228,311 -$ 168,698 - 0.0%-13.92% 1.18759% 76.92% Product Marke er $120,000-$130,000 -$ 125,000 - 0.0%-0.0% 0.0% 50.0% Br er $91,324-$150,000 -$ 124,081 - 0.0%-0.0% 0.0% 0.0% er $80,000-$142,240 -$ 111,120 - 0.0%-0.0% 0.0% 50.0% Growth Marke er $90,000-$124,800 -$ 110,892 - 0.0%-0.0% 0.00043% 33.33% tal Marke er $72,727-$130,000 -$ 109,545 - 0.0%-0.0% 0.00024% 70.0% Co te t Marketer $80,000-$120,000 -$ 96,871 - 0.0%-0.38% 0.03428% 46.15% er $75,000-$100,457 -$ 87,612 - 0.0%-0.0% <0.0001% 33.33% $57,000-$105,000 -$ 81,000 - 0.0%-0.0% 0.0% 0.0% Marke er $80,000-$82,000 -$ 81,000 - 0.0%-0.0% 0.00017% 50.0% Marke r ator $60,000-$72,500 -$ 65,500 - 0.0%-0.13% 0.03232% 40.0% Marketing is without a doubt one of the key drivers of growth in businesses. When analysing the data at $0-5m and $5-25m revenue companies we did not find a material difference in remuneration between a Head of Marketing, VP of Marketing or Chief Marketing Officer and as such have grouped the three role titles together into the one category. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 31 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  32. 32. $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Marke $190,000-$301,000 -$ 257,000 - 0.13%-0.73% 0.43285% 100.0% VP/Head of Marke $110,000-$295,000 -$ 177,720 - 0.0%-0.36% 0.04035% 66.67% VP/Head of Growth $145,000-$210,046 -$ 168,009 - 0.0%-0.0% 0.00122% 80.0% Pr ke er $103,000-$180,000 -$ 141,500 - 0.0%-0.0% 0.0% 0.0% Br er $105,000-$160,000 -$ 133,744 - 0.0%-0.1% 0.02564% 40.0% er $75,000-$160,000 -$ 120,000 - 0.0%-0.14% 0.06657% 85.71% Co te t Marke er $85,200-$130,000 -$ 116,700 - 0.0%-0.03% 0.00551% 66.67% Growth Marke er $74,000-$140,000 -$ 116,625 - 0.0%-0.04% 0.01496% 50.0% Marke er $100,000-$140,000 -$ 113,750 - 0.0%-0.0% 0.0% 25.0% tal Marke er $61,800-$170,000 -$ 109,062 - 0.0%-0.14% 0.02615% 81.25% er $65,000-$130,000 -$ 99,228 - 0.0%-0.25% 0.06253% 60.0% $80,365-$114,000 -$ 96,455 - 0.0%-0.0% 0.0% 33.33% er $85,000-$110,000 -$ 95,000 - 0.0%-0.0% 0.0% 33.33% Co te t Marketer $73,500-$80,000 -$ 76,750 - 0.0%-0.0% 0.00015% 100.0% SE er $60,000-$77,500 -$ 68,750 - 0.0%-0.0% 0.00011% 100.0% Marke r ator $56,000-$75,000 -$ 62,750 - 0.0%-0.0% 0.0% 25.0% Marketing continued AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 32 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  33. 33. CUSTOMER FUNCTION $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation VP/Head of Customer $120,000-$182,648 -$ 140,902 - 0.0%-0.09% 0.013% 14.29% Customer Experience Manager $105,000-$150,000 -$ 123,750 - 0.0%-0.0% 0.0% 0.0% Customer Service Manager $70,000-$125,000 -$ 113,000 - 0.0%-10.0% 4.00127% 60.0% Implementation Consultant $75,000-$120,000 -$ 90,455 - 0.0%-0.0% 0.0% 0.0% Customer Support Officer $55,000-$125,000 -$ 74,679 - 0.0%-10.0% 6.66667% 66.67% Customer Support Specialist $60,000-$70,000 -$ 67,000 - 0.0%-0.0% 0.0% 0.0% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation Chief Customer Officer $180,000-$270,000 -$ 213,750 - 0.0%-0.68% 0.17101% 100.0% VP/ Head of Customer Experience $190,000-$222,500 -$ 206,250 - 0.0%-0.0% 0.00307% 100.0% VP/Head of Customer Support $110,000-$182,648 -$ 141,246 - 0.0%-0.27% 0.04785% 57.14% Customer Service Manager $65,000-$150,000 -$ 105,824 - 0.0%-0.27% 0.03935% 66.67% Customer Support Manager $54,325-$126,720 -$ 88,846 - 0.0%-0.0% 0.00034% 22.22% Customer Experience Specialist $55,000-$87,380 -$ 67,460 - 0.0%-0.0% 0.0% 0.0% Customer Support Engineer $65,000-$100,000 -$ 78,333 - 0.0%-0.0% 0.00023% 66.67% Customer Support Officer $54,500-$90,000 -$ 69,329 - 0.0%-0.0% <0.0001% 43.48% Customer Insights Analyst $57,000-$80,028 -$ 68,514 - 0.0%-0.0% 0.0% 0.0% $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP Participation VP/Head of Customer Support $130,000-$220,000 -$ 175,000 - 0.0%-0.0% 0.0% 50.0% VP/ Head of Customer Experience $97,500-$240,000 -$ 150,375 - 0.0%-0.01% 0.00264% 75.0% Customer Support Specialist $113,000-$116,000 -$ 114,500 - 0.0%-0.0% 0.0% 50.0% Customer Service Manager $54,795-$170,000 -$ 84,277 - 0.0%-0.14% 0.00984% 86.21% Customer Support Engineer $66,000-$114,000 -$ 82,875 - 0.0%-0.0% 0.0% 0.0% Customer Support Officer $45,000-$107,000 -$ 64,444 - 0.0%-0.1% 0.0073% 67.74% We found a large variety in role title and salary spread across the customer function. This represents the big focus technology companies have on measuring customer outcomes and proactively trying to impact their customers. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 33 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  34. 34. OPERATIONS The role titles reported on in Operations reflects the changing nature of the startup space. This year role titles such as Warehouse Manager and Risk and Compliance Manager reflect the explosion of fintech, eCommerce and on-demand marketplace businesses in Australia. $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/Head of Opera $50,000-$237,620 -$ 149,451- 0.0%-10.0% 0.62471% 64.71% Pr ger $72,500-$155,251 -$ 120,917- 0.0%-0.0% 0.00033% 33.33% Opera ger $61,256-$160,000 -$ 106,130- 0.0%-10.0% 1.72124% 50.0% O ger $61,800-$108,110 -$ 80,486- 0.0%-0.0% 0.00022% 14.29% ger $62,500-$69,000 -$ 65,750- 0.0%-0.0% 0.0% 0.0% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a ef Opera $150,000-$260,000 -$ 206,397- 0.0%-0.37% 0.08178% 64.71% Progr ger $140,000-$200,000 -$ 180,000- 0.0%-0.0% 0.0% 100.0% r awyer $136,513-$235,000 -$ 174,722- 0.0%-0.0% <0.0001% 50.0% ef of Sta $168,000-$180,000 -$ 174,000- 0.0%-0.0% 0.0002% 50.0% VP/Head of Strategy $130,000-$215,000 -$ 162,500- 0.0%-0.13% 0.02202% 66.67% Head of Opera $120,000-$185,000 -$ 162,500- 0.0%-0.02% 0.00441% 75.0% VP/Head of Opera $135,000-$200,000 -$ 157,000- 0.0%-0.37% 0.18577% 100.0% ger $120,000-$160,000 -$ 140,000- 0.0%-0.0% 0.0% 0.0% Opera ger $97,500-$150,000 -$ 120,738- 0.0%-0.0% 0.00062% 75.0% Pr r ger $100,000-$140,000 -$ 120,000- 0.0%-0.01% 0.00691% 100.0% ra $87,500-$130,000 -$ 108,750- 0.0%-0.0% 0.0% 100.0% Pr ger $50,000-$145,000 -$ 99,344- 0.0%-0.38% 0.03786% 54.55% War ger $60,000-$135,000 -$ 97,500- 0.0%-0.0% 0.0% 0.0% y t $65,000-$120,000 -$ 91,429- 0.0%-0.0% 0.0% 0.0% Opera g $80,000-$85,000 -$ 81,667- 0.0%-0.0% 0.0% 0.0% O ger $60,000-$90,000 -$ 76,307- 0.0%-0.13% 0.0431% 50.0% Opera ate $55,000-$77,500 -$ 66,167- 0.0%-0.0% 0.00024% 66.67% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 34 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  35. 35. Operations continued Operations can often be a multifaceted “catch-all” function that depends on the complexity and type of the business in question. As such the “Chief Operations Officer” can at times be responsible for the majority of headcount in a business while shouldering ownership over key growth metrics. As such, we see now more than ever businesses must analyse and assess their needs, growth plans and organisational structure as they consider what constitutes an impactful COO role specific to their business. $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Opera $184,403-$330,000 -$ 249,939- 0.0%-0.13% 0.03232% 87.5% er $150,000-$265,000 -$ 207,500- 0.0%-0.0% 0.00053% 50.0% r $102,000-$335,000 -$ 205,459- 0.0%-0.13% 0.02463% 71.43% VP ra $120,000-$306,806 -$ 204,231- 0.0%-0.02% 0.00592% 100.0% Lawyer $180,000-$220,000 -$ 200,000- 0.0%-0.0% 0.0% 0.0% VP ra $75,000-$350,000 -$ 187,259- 0.0%-0.03% 0.00235% 68.75% ra $134,000-$210,000 -$ 183,000- 0.0%-0.0% 0.0% 0.0% Pr r er $140,000-$200,000 -$ 180,000- 0.0%-0.0% 0.0% 0.0% Chie a $100,000-$220,000 -$ 168,000- 0.0%-0.01% 0.00366% 60.0% Opera er $85,000-$220,000 -$ 125,682- 0.0%-0.65% 0.06326% 80.0% Opera s $100,000-$160,000 -$ 118,000- 0.0%-0.0% 0.0% 0.0% Pr er $75,210-$180,000 -$ 116,848- 0.0%-0.04% 0.00399% 59.09% ys $79,000-$140,000 -$ 109,364- 0.0%-0.0% 0.0% 9.09% Pr r er $100,000-$115,000 -$ 107,500- 0.0%-0.0% 0.0% 50.0% ra $95,000-$95,000 -$ 95,000- 0.0%-0.0% 0.0% 0.0% O er $65,000-$150,000 -$ 93,338- 0.0%-0.0% <0.0001% 25.0% $60,000-$100,000 -$ 72,727- 0.0%-0.0% 0.0% 20.0% $55,000-$81,000 -$ 69,200- 0.0%-0.0% 0.0% 40.0% Opera a e $55,000-$60,000 -$ 58,333- 0.0%-0.0% 0.00025% 66.67% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 35 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  36. 36. IT OPERATIONS & ARCHITECTURE Our definition of IT classified positions was non-product engineering focused, technology positions. With earlier stage businesses we found very few roles existed to support the business but as companies grew this number of roles increased. Dev-ops and platform focused architecture roles can be found under the Research and Engineering category. $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Head of IT $102,500-$185,000 -$ 143,750 - 0.0%-0.0% 0.0% 0.0% Technical Architect $130,600-$130,600 -$ 130,600 - 0.0%-0.0% 0.0% 0.0% Engineer - Infrastructure Opera $90,000-$140,000 -$ 115,960 - 0.0%-10.0% 5.245% 75.0% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Technical Architect $100,000-$195,000 -$ 155,000 - 0.0%-0.0% 0.0% 66.67% Engineer - Infrastructure Opera $80,000-$145,000 -$ 111,667 - 0.0%-0.13% 0.02348% 33.33% Engineer - Applica ra $52,800-$177,000 -$ 103,140 - 0.0%-0.01% 0.00217% 25.0% Head of IT $59,091-$150,000 -$ 94,141 - 0.0%-0.0% 0.0% 33.33% IT Service Manager $70,000-$122,400 -$ 86,160 - 0.0%-0.0% 0.0% 40.0% $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Security Architect $150,020-$180,000 -$ 167,007 - 0.0%-0.0% 0.00042% 100.0% Head of IT $110,000-$220,000 -$ 163,600 - 0.0%-0.01% 0.00092% 50.0% rchitect $130,000-$200,000 -$ 152,857 - 0.0%-0.0% 0.00067% 28.57% Technical Architect $120,000-$185,000 -$ 151,250 - 0.0%-0.15% 0.03802% 50.0% Engineer - Infrastructure Opera $110,000-$165,000 -$ 135,167 - 0.0%-0.05% 0.00805% 55.56% Engineer - Applica ra $112,500-$140,000 -$ 125,833 - 0.0%-0.06% 0.02807% 66.67% $65,000-$170,000 -$ 117,500 - 0.0%-0.09% 0.04743% 50.0% IT Service Manager $67,500-$150,000 -$ 113,375 - 0.0%-0.1% 0.03419% 50.0% Systems Engineer $65,000-$170,000 -$ 107,500 - 0.0%-0.0% <0.0001% 8.33% Service Desk Manager $80,000-$90,000 -$ 85,000 - 0.0%-0.0% 0.0% 0.0% IT Support & Network Engineer $47,999-$100,457 -$ 74,019 - 0.0%-0.0% <0.0001% 66.67% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 36 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  37. 37. $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/Head of Finance $60,000-$249,200 -$ 133,044- 0.0%-0.01% 0.002% 37.5% Financial Controller $95,000-$175,000 -$ 132,652- 0.0%-10.0% 3.33344% 50.0% Accountant $60,909-$114,155 -$ 87,532- 0.0%-0.0% 0.0% 0.0% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Finance O $136,500-$400,000 -$ 212,907- 0.0%-0.1% 0.0201% 100.0% Head of Finance $160,000-$182,000 -$ 172,985- 0.0%-13.92% 2.78503% 83.33% Finance Business Partner $130,000-$155,000 -$ 142,500- 0.0%-0.0% 0.0% 50.0% Financial Controller $84,000-$150,000 -$ 108,000- 0.0%-0.0% 0.00025% 100.0% Analyst $85,455-$110,001 -$ 101,364- 0.0%-0.35% 0.08885% 75.0% Accountant $60,000-$130,000 -$ 82,226- 0.0%-0.0% 0.00014% 46.15% $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief Finance O $164,384-$388,931 -$ 251,400- 0.0%-0.78% 0.14362% 88.24% Head of Finance $160,000-$250,000 -$ 194,000- 0.0%-0.01% 0.00352% 60.0% Vice President - Finance $170,000-$200,000 -$ 185,000- 0.01%-0.01% 0.01% 100.0% Financial Controller $100,000-$196,000 -$ 144,900- 0.0%-0.2% 0.05087% 80.0% Finance Manager $100,000-$160,000 -$ 122,739- 0.0%-0.2% 0.03365% 70.0% Finance Business Partner $85,000-$165,000 -$ 116,000- 0.0%-0.0% 0.0004% 40.0% Sales Opera yst $83,000-$140,000 -$ 111,500- 0.0%-0.0% 0.0% 0.0% Analyst $63,000-$155,000 -$ 108,875- 0.0%-0.17% 0.04681% 62.5% Accountant $55,000-$145,000 -$ 84,659- 0.0%-0.0% 0.00015% 50.0% Credit Underwriter $65,000-$70,000 -$ 67,500- 0.0%-0.0% 0.0% 0.0% Accounts $51,600-$65,000 -$ 58,300- 0.0%-0.0% 0.0% 0.0% FINANCE AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 37 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  38. 38. HUMAN RESOURCES Many entrepreneurs talk about people being the key to the success of their business. As talent wars continue, the importance of people within the fast growth tech industry becomes critical for ongoing growth as business shift to become a ‘people centric’ workplace. The low ESOP participation in the $0-5 million range points to two trends that we have observed in market; The first “HR” hire is critical in helping to establish an ESOP scheme in the first place The “HR” function is (wrongly) viewed as an admin function and its impact is undervalued as a result. The rise of the Chief People Officer: Majority of CPO roles were found within the $25m+ cap range, with outliers found within $0-25m. Early on, it is usually the founding teams responsibility to create culture and lead people-centric activities. In periods of growth, a CPO is responsible for overseeing: – Coaching, learning & development. – Talent acquisition, retention and engagement – Realigning rewards to market realities through adaptive and personalised compensation structures – Leveraging workforce analytics to promote data-driven decision making $0-5 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a VP/Head of HR $182,648-$230,000 -$ 206,324 - 0.0%-0.0% 0.0% 0.0% HR Manager $105,000-$143,000 -$ 124,000 - 0.0%-0.0% 0.0% 0.0% People Opera $82,000-$110,000 -$ 96,000 - 0.0%-0.0% 0.0% 0.0% $5-25 million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief People O $225,000 -$ 225,000 - 0.01%-0.01% 0.01271% 100.0% Talen ger $150,000-$160,000 -$ 155,000 - 0.0%-0.0% 0.0% 0.0% Head of P re $100,000-$180,000 -$ 146,303 - 0.0%-13.92% 1.74136% 83.33% HR Manager $80,000-$178,000 -$ 122,571 - 0.0%-0.02% 0.00291% 42.86% Talen R ter $65,000-$110,000 -$ 91,000 - 0.0%-0.01% 0.0029% 60.0% $70,000-$87,380 -$ 81,500 - 0.0%-0.0% 0.00027% 66.67% People Op $58,240-$92,000 -$ 72,648 - 0.0%-0.35% 0.07086% 40.0% L & D Manager $56,375 -$ 56,375 - 0.0%-0.0% 0.0% 0.0% $25+ million Base Salary Range Mean Salary ESOP Range Avg ESOP % % ESOP P a Chief People O $180,000-$301,000 -$ 234,200 - 0.0%-0.13% 0.07844% 100.0% Head of P re $157,000-$245,000 -$ 196,207 - 0.0%-0.15% 0.03425% 63.64% Head of Talent $115,500-$200,000 -$ 157,750 - 0.0%-0.34% 0.17043% 100.0% Talen ger $120,000-$150,000 -$ 134,612 - 0.0%-0.0% 0.0001% 41.18% Partner $95,000-$150,000 -$ 120,000 - 0.0%-0.0% 0.0% 50.0% HR Manager $65,000-$154,000 -$ 117,700 - 0.0%-0.01% 0.00227% 50.0% Employee Engagement $95,000-$140,000 -$ 117,500 - 0.11%-0.11% 0.10823% 100.0% $86,000-$90,125 -$ 88,062 - 0.0%-0.0% 0.0% 0.0% Talen R ter $55,000-$110,000 -$ 85,384 - 0.0%-0.0% <0.0001% 30.0% People Op $42,000-$115,000 -$ 76,176 - 0.0%-0.0% 0.00071% 42.86% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 38 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  39. 39. 3 EMPLOYER SHARE OPTION PLANS (ESOP) AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022
  40. 40. EMPLOYEE SHARE OPTION PLANS (ESOP) IN AUSTRALIA, ESOPS (OR EMPLOYEE SHARE OPTION PLANS) ARE NOW AN ACCEPTED APPROACH TO REMUNERATION FOR STARTUP EMPLOYEES, IN LARGE PART DUE TO THE 2015 ESS STARTUP TAX CONCESSIONS. Share options are now commonly offered to incentivise employees to join startups, either to bolster an already competitive salary offer, or to put some lipstick on a less palatable one. But the Australian salary landscape is still lacking any sense of standardisation when it comes to the distribution of ESOP packages. The data showed very few consistent trends when considering variables like funding, revenue and valuation and almost no correlation with median base salary. Market insights have highlighted that education (separate and distinct from financial and accounting advice) about how ESOPs operate is severely lacking in the startup landscape, which may be a contributing factor to the lack of standardisation. DEFINITIONS STRIKE PRICE A fixed price at which the owner of options can buy or sell their options, converting them to shares. FULLY DILUTED SHARES The total number of shares in a company after all possible sources of conversion (like employee share options) have been exercised. ESOP V ESS An ESOP (Employee Share Option Plan) is a type of ESS (Employee Share Scheme). An ESOP allows an employee to receive options to purchase shares, instead of shares which must be purchased outright. EQUITY Equity is another way of saying ownership or shares in a company. For example, options become equity once they have been exercised and converted into shares. VALUATION It is necessary to value a company to determine the price of shares at any given point in time. The valuation of a company may change over time. If you own shares, it’s always best to buy or be given them at a low valuation in the hope that the value of your shares increases over time. CAP RAISE Shorthand for Capital Raise, it’s the process a company goes through to raise money from investors. Each Cap Raise will have a Valuation attached to it. VESTING Vesting is the point in time when an option or shareholder legally owns options or shares allocated to them. Until options or shares have vested, they cannot be bought or sold. 3,200 ROLES RECORDED OF ROLES HAD ESOP ALLOCATIONS FORMING PART OF THEIR REMUNERATION PACKAGES. 49% AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 41 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  41. 41. ESOP POTENTIAL EARNINGS Erica joins an AI company following their Series B raise. Her starting package is made up of $155k base salary and 45,000 options at a strike price of $8.35. If Erica exercises all of her options to purchase shares, she can realise up to $375,750 in addition to her base salary Charles joins a seed stage, B2B SaaS company. His starting package is made up of $195k base salary and 532 options issued at a strike price of $2.27. The company valuation increases following a series A round. The share price after the raise increases to $41.52 and he is offered an additional 11,130 options to purchase shares. If Charles exercises all of his options to purchase shares, he can realise up to $463,435 in addition to base salary The Avatars above are hypothetical characters drawn from patterns collected from real data. To ensure anonymity, figures have been changed by 0.01% and are intended to represent median base remuneration for particular role types correlated with median ESOP allocations for such role types. The illustrative financial outcomes do not take into account any tax implications and should not be taken as financial advice. Lauren joins a series D cleantech startup. Lauren’s starting package is made up of 139k base salary with 145 options issued at a strike price of $142.65. She is not offered any further ESOP allocation. If Lauren exercises her options to purchase shares she can realise up to $20,684.25 in addition to her base salary LAUREN IS A MARKETING MANAGER ERICA IS A CUSTOMER SUCCESS MANAGER CHARLES IS THE VP OF ENGINEERING AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 42 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  42. 42. EQUITY DISTRIBUTION by function and cap raise KEY FINDINGS 17% A significant proportion (17%) of Customer Service Managers had more than half of their remuneration in equity. 47% Half (47%) of the AI Engineers had equity offers of more than ¾ of their base salary. 50% For non-executive, technical roles including developers and engineers, 50% had equity valued at over half their base salary. MAJORITY A large portion of Head/VP roles for their respective function had large share holdings in comparison to their salaries. 20% of ‘Chief’ roles had significant equity, with the majority ranging between 2-3x their salary, with 10% holding up to 5x - 10x their salary. 28.4 34.4 61.7 17.1 41.8 17.2 4.8 3.2 5.6 3.9 13.4 4.4 5 14.4 9.5 7.1 2.5 3.5 2.3 4.1 7.7 9.5 3.6 5.5 4.4 6.3 1.1 2.6 2.7 2.1 9.7 7.2 5.3 12.1 6.9 1.9 2.7 1.5 2.9 1.8 3.8 2.8 3.4 5.5 3.3 2.3 11.1 1.6 4.8 3.3 2.1 16.1 4.8 24.3 13.4 3.3 3.7 2.7 5.4 Executive General Management Engineering Operations Sales Marketing Customer Product Design IT Data Finance HR $0-3 million $3-10 million $10-25 million $25-50 million $50+ million AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 43 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  43. 43. COMMON THREADS I'VE SEEN THAT CONVERSATION AROUND EQUITY VARIES QUITE WIDELY WITH COMPANIES. SOME OF THEM, YOU COULD BE QUITE RELATIVELY EQUAL IN THEIR STAGE IN SIZE AND VALUE. BUT IT'LL ALWAYS COME BACK TO HOW MUCH EQUITY THE FOUNDERS ARE WILLING TO UNLOCK - Matthew O’Leary, Chief People Officer at Zepto MOST OF THE COMPANIES OUT THERE THAT WANT TO COMPETE, ARE OFFERING BASE EQUITY, AND BONUS, THAT'S KIND OF THE STANDARD THAT YOU'RE LOOKING FOR ACROSS ALL LEVELS - Zak Islam, CTO at Linktree CONSIDER HOW TO HAVE FLEXIBILITY FOR PEOPLE AT DIFFERENT STAGES IN LIFE OR WITH DIFFERENT RISK TOLERANCES - FOR EXAMPLE, SOMEONE WITH TWO KIDS IN PRIVATE SCHOOL MIGHT NEED MORE CASH IN HAND - Ashley Williams, Chief People Officer at EFTPOS Common threads in ESOP interviews SHOULD COMPANIES BE OFFERING SALARY, EQUITY OR BOTH? There is a significant need for education as to the value and importance of equity in Australia relative to what is common in the international landscape. •For example, in the US, the proportion of companies securing significant exits, makes the value proposition distinctly different to that of a small startup in Australia. •Inflated, or very high valuations, have tax consequences where employees may be required to pay significant sums to access their entitlements. This forms part of the previous point re: education. •Quarterly vesting is the norm, but companies are catching onto weighted vesting, which allows employees to exercise their options earlier as a talent acquisition strategy. •Equity is being designed with more employee favourable terms such as the ability to exercise options earlier and the inclusion of acceleration clauses. But again, employees must be educated to understand these terms. •Total employee value proposition (perks and benefits) often need to complement remuneration packages (including ESOP) because it’s often impossible to compete with the tech giants who are competing for the same talent. To put it simply - is it worth owning 90% of a company valued at $1 million or 50% of a company valued at $100 million? AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 44 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  44. 44. ADVICE ON ESOP For candidates and founders SHOULD COMPANIES BE OFFERING SALARY, EQUITY OR BOTH? Joffe’s view is that it’s not a one-size-fits all solution, for the company, or the employee. He says: • In companies where cash is constrained, equity can act as a surrogate to retain talent. • To hire the best talent, equity alone ceases to be an incentive. Companies must offer both high salary and palatable equity. • There will be people who are more risk averse due to family or other commitments and therefore won’t see an ESOP allocation (over salary) as an incentive. • Conversely, people who have never had an opportunity to create real wealth may see ESOP allocation as a significant opportunity. Importantly, he encourages founders to re-frame how they view ownership of their company. To put it simply - is it worth owning 90% of a company valued at $1 million or 50% of a company valued at $100 million? WHAT SHOULD CANDIDATES BE LOOKING FOR IN AN OFFER? JOFFE’S TIPS ARE: • Look for a 12 month cliff with structured vesting (monthly or quarterly). Equity packages should be simple and easy to understand. •Ensure that the strike price of your options is that of the last funding round, rather than the valuation you’re simply being told. • If you’re being told the company value is significantly higher than the last funding round, ask to see an independent valuation. • Check whether the ESOP includes acceleration clauses in the case of an acquisition. RICHARD JOFFE FOUNDER OF AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 45 THEORETICALLY, YOU HAVE 1% OF THE COMPANY INVESTING OVER FOUR YEARS AND THE COMPANY GETS BOUGHT IN TWO YEARS - YOU ONLY GET HALF OF THAT. WELL, YOU'VE BEEN WORKING YOUR BUTT OFF FOR TWO YEARS AND CONTRIBUTED TO THE COMPANY BEING ACQUIRED EARLIER, WHY SHOULDN'T YOU BENEFIT FROM THAT?” Instead of asking a new investor if they’re going to stick in money, one should ask if they put in $1 million dollars, are they going to create more than $1 million dollars of value as part of this business? ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  45. 45. ESOP BEST PRACTICE IT’S TRICKY FOR STARTUPS TO COMPETE ON CASH COMPENSATION AGAINST ANY FAANG COMPANY. BUT WHEN YOU ADD EMPLOYEE EQUITY TO THE MIX, YOU PUT FORWARD A TANGIBLE AND COMPELLING PROPOSITION: OWNERSHIP AND POTENTIAL FOR A FINANCIAL UPSIDE A FEW YEARS DOWN THE TRACK. Five years ago, this wouldn’t have been the case; it wasn’t common practice and many employees didn’t care about equity. Now, things have changed, and we typically see around 50% of employees opt for a lower salary coupled with higher equity when given the choice. The Nuts & Bolts of ESOP Best Practice ANDREW DONALD HEAD OF TALENT AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 46 ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW THE BENEFIT TO FOUNDERS IS CLEAR: • It focuses everyone on your North Star. • It allows you to attract top-tier talent you couldn’t afford. • It saves cash; extending your runway. ONGOING COMMUNICATION IS AT THE HEART OF BEST PRACTICE FOR ESOP AMONGST AIRTREE’S PORTFOLIO Strategies and tactics that we’ve seen work effectively include: • Sit down with every candidate you make an offer to to ensure they understand the ESOP component and how it compares to other offers they may have on the table. • Hold regular workshops on your equity plans to ensure that employees remain engaged. Use this time to answer questions around things like expected dilution and possible timings of a liquidity event. • Send around your equity calculation tool every quarter to keep the team excited and incentivised about the potential value of their equity. • When your employees are onboard and excited about their equity, conversations will naturally arise around top-ups, especially if you’re experiencing traction and momentum – and everyone can see that in your metrics! Top-ups should feel special and given to employees who demonstrate the right behaviours and are actively involved in your startup's value creation.
  46. 46. ESOP Best Practice Continued AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 47 ESOP IS COMPLEX AND EASILY MISUNDERSTOOD. IT’S NOT EASY TO COMPARE ONE ESOP OFFER FROM ANOTHER. One of the best things a founder can do is to create transparency and an understanding of what granted equity means for each employee. You can explain equity in a clear and digestible way by: • Creating a simple table allows employees to choose from different remuneration packages based on their risk/reward tolerance. • Providing a simple calculation tool where candidates and employees can see what the value of their equity could look like at various exit scenarios. This can also help to convey the potential for equity to bridge and exceed the gap to a competing all salary offer. OTHER TIP: • Quashing misconceptions, e.g. options require an upfront payment from the employee. ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  47. 47. WHAT DO THE LAWYERS SAY? STUART DULLARD PARTNER AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 48 THERE ARE THREE LEGAL KEY AREAS WHICH ARE RELEVANT TO STRUCTURING AN ESOP OR ESS PLAN TAX Ensuring that the participants in the ESOP or ESS do not have to pay tax in the current financial year based on the value of the options or shares. SECURITIES LAW Ensuring that options or shares are issued in reliance on an exception from the requirement to prepare a prospectus. CORPORATE LAW Ensuring that the Plan Rules for the ESOP or ESS work with your Shareholders Agreement and Constitution (amongst other things, to ensure that the exit provisions work). ESS CONCESSION In terms of the tax treatment, the most generous rules are the Early Stage Start-up Tax Concession or the "ESS Concession" for short. This allows participants to not pay tax on the initial award of shares or options and defer the time when tax is paid to the time that the shares or options are sold for cash. It also allows participants to pay capital gains tax (rather than income tax) at that time - which can be a significant tax benefit. There are qualifying criteria for the availability of the ESS Concession and there are a number of conditions to the ESS Concession which impacts both on the Plan Rules and how the plan is operated. WE ARE SEEING AN INCREASING TREND OF FOUNDERS WANTING TO ISSUE EQUITY TO ALIGN THE INTERESTS OF STAFF, TO ENCOURAGE STAFF TO THINK LIKE OWNERS OF THE BUSINESS AND TO INCREASE THE TOTAL REMUNERATION PACKAGE (ESPECIALLY BEFORE BREAK EVEN WHEN HIGH GROWTH COMPANIES ARE CASH CONSTRAINED). Equity plans can be an extremely useful tool to motivate and reward staff. To get the most out of Equity plans it is important to structure them correctly from a commercial and legal perspective. If not structured correctly, this can impact the tax treatment for the company and staff and have the potential to complicate an exit (such as a sale or IPO). ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW
  48. 48. AUSTRALIAN STARTUP SALARY GUIDE 2021 - 2022 49 SECURITIES LAW CONSIDERATIONS In terms of securities law considerations, the general rule is that to offer securities (including shares and options) to people in Australia you need to prepare a prospectus, unless an exemption applies. The exceptions from the prospectus laws which are most likely to be relevant are: SENIOR MANAGERS Senior managers are people who take part in the management of the company and do not need a prospectus on the basis that they understand the risks inherent in the business. SOPHISTICATED INVESTORS These are people who have net assets of at least $2.5 million or have gross income for each of the last two financial years of at least $250,000 and are considered sophisticated enough to make their own independent decision as to whether to participate in the ESOP or ESS plan (and, if options, whether or not to pay the exercise price to exercise the options). ESOP EXEMPTION ASIC has given conditional relief from the prospectus laws for ESOP or ESS plans – the plan needs to be structured so as to meet all the conditions. They key conditions include a cap of $5,000 per person per annum, a 20% overall cap on the size of the ESOP pool and disclosure requirements which in some cases require an 'offer information statement' and an independent expert's report. AMENDING THE SECURITIES LAWS Treasury are in the process of consulting to amend the securities laws to encourage the use of ESOP or ESS plans. These reforms include drastically simplifying the laws where shares and options are offered in circumstances where there is no payment from the member of staff (at the time of issue and exercise of any options) and increasing the cap of $5,000 per person per annum to $30,000 per person per annum. To complicate matters, the conditions to the ASIC ESOP Exemption does not perfectly align to the conditions to the ESS Concession, so it is important that the tax advisers speak to the company's lawyers when drafting and implementing the plan. ©2021 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG GLOBAL ORGANISATION OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL LIMITED, A PRIVATE ENGLISH COMPANY LIMITED BY GUARANTEE. ALL RIGHTS RESERVED. THE KPMG NAME AND LOGO ARE TRADEMARKS USED UNDER LICENSE BY THE INDEPENDENT MEMBER FIRMS OF THE KPMG GLOBAL ORGANISATION. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION @2021 THINK & GROW What do the lawyers say? Continued

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