Originally published on lavkesh.com
Senior PM total comp at Series C and later startups has dropped 18% in 24 months, the first sustained decline since 2015, according to Lenny's Newsletter PM benchmarks. This trend affects a crucial role for startups, with the drop more pronounced than the cooling engineering market, where senior IC roles are holding up better than management tracks.
Product management has always been highly valued in startups, with senior PMs' total compensation traditionally high, reflecting their importance in driving product development and growth. However, current market conditions, including the end of the 2021-22 over-hiring cycle, have led to a decline in compensation for senior PMs, with many startups reevaluating their compensation structures and executive pay.
The decline in senior PM pay is also a result of the changing nature of the role itself; as startups grow and mature, product management becomes more complex, requiring a broader range of skills and expertise. However, this increased complexity has not been matched by a corresponding increase in compensation, leading to a disconnect between the value senior PMs bring and the rewards they receive.
The implications of this trend are significant, as it may lead to a brain drain of top product management talent from startups to more established companies, where compensation is more stable and rewarding. This could negatively impact startups' ability to innovate and compete, as they will be losing the people responsible for driving product development and growth.
The shift in salary trends for senior PMs reflects the evolving tech industry, where lines between roles and functions are becoming increasingly blurred. Startups will need to adapt to these changes and find new ways to reward and retain top talent, including senior PMs, or risk falling behind in the competitive startup market.
The drop in senior PM pay is a complex issue, driven by market conditions, the changing role, and startups' evolving needs. The traditional model of compensating senior PMs is no longer sustainable; startups must find new ways to attract and retain top product management talent to remain competitive.
The current state of senior PM compensation presents a challenge for startups but also an opportunity to rethink their approach to rewards and talent management. By finding new ways to provide value to senior PMs and recognizing the importance of this role, startups can attract and retain top talent and better position themselves to compete and thrive.
The decline in senior PM pay is a trend that will be watched closely by startups and the tech industry, with significant implications for talent management and compensation. Startups will need to stay ahead of the curve and find new ways to attract and retain top talent, including senior PMs.
The future of senior PM compensation is uncertain, but one thing is clear: the traditional model is no longer sustainable. Startups will need to adapt to the changing market and employee needs, requiring a fundamental change in their approach to compensation and rewards, and a willingness to experiment and try new things.
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