Life sciences organisations sit at the intersection of research, technology and commercial strategy. Leaders carry responsibility for scientific direction, regulatory navigation, investor confidence, operational execution and talent acquisition. The workload is complex, the expectations are high, and the pressure rarely eases.
Yet one area remains strangely unclear for many founders and C-suite executives: their own compensation.
Setting compensation is difficult because the financial realities of a growing biotech or life sciences organisation change quickly. In the early stages, every decision affects survival. Later, decisions influence scaling, governance and investor alignment. Pay yourself too much, and you drain capital needed for development, hiring or regulatory progress. Pay yourself too little, and you create avoidable financial stress that will eventually impact performance.
A structured approach to compensation helps leadership teams maintain personal stability while supporting organisational growth. This guide outlines the main considerations, benchmarks and decision points for founders and leaders in the life sciences sector.
Understanding Leadership Pay in Life Sciences
Compensation in biotech and life sciences varies widely due to differing business models, regulatory timelines, risk levels and capital needs. A therapeutics company at the preclinical stage is in a very different financial position than a diagnostics firm with recurring revenue. Even companies at the same funding stage can differ significantly depending on location, cost structure and investment model.
Despite the variation, several broad patterns apply across the sector.
Early Stage (Pre-seed to Seed)
Founders usually take minimal salary or none at all. Savings, consulting work or personal reserves often support them. Available capital is prioritised for scientific work, lab space, regulatory planning and essential hires.
Growth Stage (Seed to Series B)
Once investment becomes material, leadership compensation moves closer to market rates. Typical ranges for CEOs and core C-suite positions fall between 100k and 300k in well-funded organisations across Europe and the UK, with higher ranges in regions with elevated living costs.
Established Stage (Post-Series B to Revenue-Generating)
Companies with validated products, revenue or substantial capital pools often compensate leaders at senior corporate levels. Packages can exceed 400k to 500k when the organisation reaches commercial success or scales across multiple markets.
What Influences Executive Pay
Compensation decisions are shaped by a mix of internal and external factors:
Company Size and Stability
More staff, greater operational complexity and reliable revenue justify higher leadership compensation. Early-stage organisations with uncertain cash flow must remain conservative.
Funding Stage
Investors expect founders to remain responsible with capital. Low or moderate salaries are normal at early stages, but competitive compensation is appropriate after significant raises when the organisation needs long-term executive commitment.
Geographic Market
Cost of living and regional salary norms influence compensation expectations. London, Boston, Zurich and San Francisco consistently sit at the top due to higher operating costs and intense competition for talent.
Sector Focus and Commercial Potential
Companies pursuing high-value therapeutics or advanced modalities tend to secure larger funding rounds, which in turn allow for stronger compensation packages. Organisations in services, tools or diagnostics may operate with leaner budgets depending on revenue models.
Compensation Approaches for Early-Stage Leaders
Leaders in young life sciences organisations should adopt compensation structures that preserve capital while maintaining personal stability.
Minimal Salary
A small salary that covers essential living costs is often the most sustainable approach during the initial stages. It prevents personal strain while keeping pressure off the organisation’s cash position.
Equity-Based Compensation
Many founders accept lower salaries in exchange for equity. Equity aligns compensation with long-term success and preserves liquidity during years when scientific development requires heavy investment.
Deferred Salary
Some founders choose to postpone full compensation until achieving a funding round, regulatory approval, or revenue target. This protects cash while offering clarity to both leadership and investors.
When Leaders Should Increase Their Compensation
There are clear milestones where increasing pay becomes appropriate and financially sensible.
After a Significant Funding Round
Securing a major investment signals that the organisation has proven scientific and commercial potential. Investors understand the need for stable, retained leadership. At this stage, salaries can move closer to market benchmarks.
Upon Reaching Profitability or Recurring Revenue
Consistent revenue provides the financial runway needed for competitive salaries. As operational stability grows, leadership compensation can grow with it.
When Securing Strategic Partnerships or Large Grants
Strong partnerships or major grants reduce financial risk and improve planning horizons. Leadership teams often adjust compensation at this stage to reflect greater responsibility and increased organisational maturity.
Balancing Salary and Equity
One of the most common questions founders ask is whether they should prioritise salary or maintain a low salary and rely on equity. The answer depends on personal needs, investor expectations and company strategy.
Benefits of Salary
Predictability and stability support long-term focus and reduce personal risk. Fixed salaries are also easier to plan for in budgets and forecasts.
Benefits of Equity
Equity rewards patience and aligns leadership motivation with company value. It encourages long-term commitment and is typically attractive to investors because it preserves cash.
Many leaders use a hybrid model: a modest salary ensures personal stability while equity secures long-term upside.
Salary vs Dividends
For organisations structured in a way that allows dividends, some leaders consider drawing compensation from profits rather than payroll.
Advantages of Dividends
They offer flexibility, since payouts can match natural cash flow cycles. Dividends can also create tax advantages depending on the jurisdiction.
Challenges of Dividends
They rely on profitable operations, which many biotech organisations do not achieve until several years into development. They can also create unpredictable income for leaders who need stable financial planning.
Most early and mid-stage organisations rely on salary and equity, with dividends playing a role only once the business reaches true commercial maturity.
Managing Compensation Decisions Responsibly
Decisions about leadership pay should reflect the organisation’s financial health, current priorities and future goals.
Protect Cash During High-Risk Stages
During preclinical, pre-revenue and regulatory phases, liquidity is essential. Leadership pay should be restrained until the organisation has stronger financial footing.
Tie Compensation Changes to Objective Milestones
Link increases to funding, revenue, partnerships or key scientific achievements. This creates clear and defensible decision-making.
Stay Transparent with Investors and the Board
Clear communication about compensation builds trust and prevents concerns about misallocation of resources.
Get Specialist Financial Advice
Startup accounting, taxation of equity, R&D incentives and international payroll regulations are complex. Leaders should work with financial specialists who understand the life sciences landscape.
Setting Yourself Up for Sustainable Leadership
Compensation is not only a financial question. It affects wellbeing, focus and long-term performance. Leaders who manage their compensation responsibly reduce pressure on themselves while reinforcing healthy governance for their organisations.
As your company grows, revisiting compensation ensures alignment between your needs, investor expectations and the organisation’s priorities.
For life sciences organisations preparing to scale their teams, expand scientific functions or strengthen leadership capabilities, InCertBio connects you with experienced talent across the sector. The right leadership structure supports both operational efficiency and long-term value creation.
If you’re planning to strengthen your leadership team or want market clarity on senior hiring in life sciences, reach out to InCertBio.
Email: contact@incertbio.com
If you want, I can also format this into Gutenberg-ready blocks (Headings, Paragraphs, Pull Quotes, Highlights) so it looks polished the moment you paste it.