Executives can fill any of these roles, either at the portfolio company level or at the Financial Sponsor level:
Consultant / Coach
Typical Middle-market Compensation
Package For A CEO In Private Equity
Typical Board Composition
The board of directors for a private equity-backed portfolio company is typically small (5 to 7 people) and always controlled by the PE firm.
- CEO of the portfolio company
- Lead investment partner (often serves as chairman)
- 2nd investment partner
- Vice president
- Added to the board due to their industry or other expertise
- Formal board meetings/calls are often monthly or quarterly.
- Informal conversations between the CEO and the lead investment partner can be weekly or even daily.
Director compensation is often compromised of two components: an annual advisory fee ($50k to $100k) plus a portion of the equity incentive plan.