I think the article either leaves out a critical part of the speech or Peter just didn't cover it. That approach may be the right approach for CEOs of new companies that haven't taken big investment (like the TC50) or for first or second time CEOs of low capital requirement companies. I know he doesn't believe that for VC-backed companies or for companies in which the CEO brings huge value to the table in terms of past performance/experience/contacts.
Bottom line: you aren't going to be able bring in a proven CEO for $100-$125k a year. I don't care whether you're in Cincinnati, Boston, Austin, Silicon Valley - you can't expect someone who has a $15,000/month mortgage (as a proven CEO would likely have) and expect him to work for $8k/mth. "Hmmmm - over the next four years of my life, I can make $600k a year plus bonuses/benefits working for ACME Corp or I can make $100k a year with the chance to take home a $3m-$5m payoff..."
"Hmmmm - over the next four years of my life, I can make $600k a year plus bonuses/benefits working for ACME Corp or I can make $100k a year with the chance to take home a $3m-$5m payoff..."
Well, you're just making up those numbers. Here's some I made up:
"Hmmmm - over the next four years of my life, I can make $350k a year plus bonuses/benefits working for ACME Corp or I can make $130k a year with the chance to take home a $10m-$20m payoff..."
At least the made up numbers I proposed at least we in the double digits of probability lol. I put your numbers in the 0.0001% chance of occurence. In other words, I give you a 0.0001% likely that a group of founders+investors will bring in a CEO post-financing and give him (1) enough equity that he earns a $10-$20m payout, yet (2) only let him earn $130k/yr.
Bottom line: you aren't going to be able bring in a proven CEO for $100-$125k a year. I don't care whether you're in Cincinnati, Boston, Austin, Silicon Valley - you can't expect someone who has a $15,000/month mortgage (as a proven CEO would likely have) and expect him to work for $8k/mth. "Hmmmm - over the next four years of my life, I can make $600k a year plus bonuses/benefits working for ACME Corp or I can make $100k a year with the chance to take home a $3m-$5m payoff..."