Pilot's 2025 Founder Salary Report Reveals 43% Drop in Founder Compensation as Capital Efficiency Takes Center Stage
The leading accounting firm's annual report shows dramatic shift in founder compensation as capital efficiency and fewer VC funding opportunities become available
SAN FRANCISCO, April 9, 2025 /PRNewswire/ -- Pilot, the leading accounting firm for startups and small businesses, today released its annual Founder Salary Report, revealing a dramatic 43% decrease in median founder compensation over the past year. Based on data from nearly 2,000 founders, the report highlights a fundamental shift in how startup leaders are approaching personal compensation in today's more challenging funding environment.
'The data is super clear—founders are rethinking compensation,' said Waseem Daher, co-founder & executive chair of Pilot. 'We're seeing founders make smarter calls to extend runway while figuring out reasonable personal compensation. It's a stark contrast to previous years and signals an ecosystem getting serious about financial discipline—which is exactly what should be happening.'
Key findings from the 2025 Founder Salary Report include:
Median founder salaries dropped 43%: The median founder salary fell from $132,000 in 2024 to $75,000 in 2025, with nearly twice as many founders (60%, up from 37%) now paying themselves less than $100,000 annually.
Fewer founders taking zero salary: Only 5.4% of founders reported taking no salary, down from 9% last year. Founder salaries are down as venture capital (VC) is harder to come by, time between rounds is expanding, and bootstrapping is up. When founders invest their own money or funds from family and friends, they typically opt for lower salaries to fund operations, particularly when they believe in the long-term equity outcomes.
AI startups buck the trend: In contrast to the overall decline, founders of AI startups (now representing 40% of respondents, up from 14% last year) report higher median compensation of $90,000, reflecting continued investor enthusiasm for the sector. Though like all salaries, AI founder salaries are lower than they were last year.
Bootstrapping on the rise: The percentage of bootstrapped companies increased 77% from last year, now representing 18% of surveyed founders, as more entrepreneurs choose self-funding in today's challenging venture capital environment.
Most founders (31%) reported setting their salaries based primarily on 'what the startup can afford,' while those who benchmarked against market rates earned 79% more on average.
'Understanding where you fit in today's capital-efficient landscape is how you build companies that survive when things get tough,' added Daher. 'This isn't just about cutting costs—it's about making strategic decisions that balance personal sustainability with runway preservation.'
The 2025 Founder Salary Report is based on responses from 1,844 founders across various industries, funding stages, and geographic regions. The full report includes detailed breakdowns by industry, company size, company phase, funding level, and geographic location.
To download the complete report, visit pilot.com/fsr.
About Pilot
Pilot is an accounting firm that specializes in providing expert bookkeeping, tax preparation, and CFO services specifically designed for startups and small businesses. Headquartered in San Francisco and Nashville, Pilot brings together U.S.-based finance experts and cutting-edge technology to deliver trustworthy financials and actionable insights, helping founders and business owners focus on what they do best—growing their businesses.
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