Cofounder Salary Gap After Series A: What to Do

You just closed your Series A. The wire hit last Tuesday. By Thursday, your cofounder forwarded a new compensation proposal to the board — one where their salary jumps to $210K while yours stays at $130K. No prior conversation. No shared logic. Just a spreadsheet attached to an email with "Updated comp plan" in the subject line.

The cofounder salary gap after a funding round is one of the most common — and most corrosive — disputes in startup life. It rarely starts with malice. Usually it starts with an assumption: that the CEO role justifies a premium, that one person's market rate is simply higher, or that the person who led the fundraise deserves more. But regardless of how it starts, an unexplained salary gap between cofounders can quietly unravel years of shared sacrifice.

This article breaks down why this happens, what's actually fair, and exactly how to handle the conversation before resentment calcifies into something that threatens the company itself.

Key Takeaways

• Align on shared compensation principles — such as whether role-based pay differences are acceptable and what the maximum gap should be — before ever opening a spreadsheet or benchmarking data.
• Always review salary benchmark data together as cofounders, because presenting pre-selected numbers to justify a predetermined salary feels like lawyering, not collaboration.
• Document any agreed-upon salary differential in writing with explicit justification, and build in automatic review triggers at each funding round or major role change.
• Evaluate fairness across the full compensation picture — equity splits, bonuses, benefits, and vesting acceleration — not salary alone, since a modest cash gap paired with equal equity reads very differently than one paired with unequal equity.
• If resentment has already set in, name the discomfort directly and separate the money from the deeper question of whether both cofounders still see each other as equal partners.

Why the Cofounder Salary Gap Appears After Series A

During the pre-seed and seed stages, most cofounders either take no salary or take equal, below-market pay. The shared frugality creates a feeling of alignment — you're both in the trenches. Then Series A changes the calculus.

Suddenly there's $5M to $15M in the bank. A board with investor directors. A compensation committee (or at least the beginning of one). And for the first time, the conversation shifts from "how do we survive" to "what should we each be paid."

Here's where the gap typically opens:

• Title-based benchmarking. The CEO Googles "Series A CEO salary" and finds benchmark data from Kruze Consulting or Carta showing medians of $175K–$250K. The CTO finds their median is $150K–$190K. The data becomes the justification.
• Board influence. Lead investors sometimes suggest the CEO take a higher salary as a signal of "market professionalization" — without realizing (or caring) how that lands with the other cofounder.
• Fundraising leverage. The cofounder who led the raise may feel, consciously or not, that their contribution to unlocking the capital entitles them to a larger share of it.
• Role scope creep. After Series A, the CEO often takes on more external-facing responsibilities — investor relations, press, hiring executives — and the increased visibility can feel like increased value.

None of these reasons are inherently wrong. But none of them are self-evident truths, either. And when one cofounder acts on them unilaterally, the other cofounder doesn't hear a reasoned argument. They hear: I think I'm worth more than you.

What the Salary Gap Actually Signals to Each Person

Let's be specific about why this cuts so deep.

For the cofounder earning less, the gap raises a cascade of unspoken questions:

• "Do they think my contribution is less valuable?"
• "Was this decided behind my back with the board?"
• "If they're willing to do this now, what happens at Series B?"
• "Am I still an equal partner, or am I slowly becoming an employee?"

For the cofounder earning more, there's often a completely different internal narrative:

• "I'm just benchmarking against market rates."
• "The board suggested this. It's not personal."
• "I have more direct reports and broader responsibility."
• "They'd do the same thing if roles were reversed."

The danger isn't that either person is wrong. It's that they're operating from different frames — and nobody has surfaced those frames explicitly.

A Real-World Example (Anonymized)

Two cofounders — let's call them Priya and Daniel — co-founded a B2B SaaS company. Priya was CEO; Daniel was CTO. Through the seed stage, both took $95K. When they closed their $8M Series A, Priya proposed new salaries to the board: $195K for herself, $155K for Daniel.

Her reasoning was straightforward. She'd benchmarked both roles against Carta data for their stage and geography. The numbers were defensible. The board approved them without pushback.

Daniel didn't say anything for six weeks. Then he started declining optional meetings. He stopped responding to Slack messages on weekends. When Priya finally asked if something was wrong, Daniel said, "I just feel like an employee now."

The $40K gap wasn't about money. Daniel could have lived with a differential. What stung was that he'd learned about it as a decision already made — not a conversation he was part of. The gap wasn't just in salary. It was in how decisions about compensation were being made.

Priya and Daniel eventually worked it out — but it took two months of awkward tension, a difficult board conversation, and a restructured comp plan. Time they didn't have.

How to Determine Fair Cofounder Compensation After Series A

There's no single right answer for what cofounders should earn post-Series A. But there's a framework that keeps things grounded.

1. Start with Shared Principles, Not Numbers

Before opening a spreadsheet, both cofounders should align on the philosophy of their compensation. Ask each other:

• Do we believe cofounders should be paid equally, or is role-based differentiation acceptable?
• What's the maximum gap we'd both feel comfortable with?
• Should compensation reflect current role scope, historical contribution, or both?
• How do we feel about adjusting salaries annually vs. locking them for a defined period?

Writing down these principles — even informally — gives you a shared reference point. Without them, every compensation discussion becomes a negotiation from scratch.

2. Benchmark Honestly — But Benchmark Together

Use real data. Resources like Carta's compensation reports, Kruze Consulting's CEO salary surveys, and Pave's startup benchmarks are all useful. But the critical step is that both cofounders review the data together.

When one person brings pre-selected data to justify a predetermined number, it doesn't feel like benchmarking. It feels like lawyering.

3. Define the Delta — And Justify It in Writing

If you both agree that a salary gap is appropriate, document why. Literally write it down:

• "CEO salary is set at $185K based on Carta 50th percentile for Series A companies in the Midwest. CTO salary is set at $165K based on the same source. The $20K differential reflects the CEO's additional responsibilities in investor relations and board management."

This isn't bureaucracy. It's protection — for both of you. Two years from now, neither of you will remember the nuance of today's conversation. The document will.

4. Include a Review Trigger

Salaries shouldn't be static. Build in automatic review points:

• At each new funding round
• Annually, regardless of fundraising
• When either cofounder's role changes materially (e.g., a CTO transitioning to a people-management role vs. staying hands-on-technical)

5. Account for the Full Compensation Picture

Salary is only one piece. When evaluating fairness, look at the complete package:

• Equity. Are equity splits still equal? If so, a modest salary gap may feel acceptable.
• Bonuses. Is one cofounder eligible for a performance bonus the other isn't?
• Benefits and perks. Is the CEO getting an executive coach, a larger travel budget, or a conference allowance the CTO isn't?
• Acceleration clauses. Do both cofounders have the same vesting acceleration on a change of control?

A $30K salary gap paired with equal equity splits reads very differently than the same gap paired with a 60/40 equity split.

What to Do If the Gap Already Exists and Resentment Has Set In

Maybe you're past the prevention stage. The gap is real, the resentment is real, and you're not sure how to bring it up without it becoming a fight. Here's a step-by-step approach.

Step 1: Name It Directly

Avoid passive signals. Don't withdraw or become sarcastic. Say something like:

"I want to talk about our comp structure. I've been sitting with some discomfort about the gap between our salaries, and I'd rather surface it now than let it fester."

This isn't confrontational. It's honest. And it gives your cofounder an opening to respond rather than defend.

Step 2: Separate the Money from the Meaning

The real question is usually not "Why do you earn $40K more than me?" It's "Do you still see us as equals?" Try to get to the underlying concern. If the answer is yes — and you believe it — the salary mechanics become much easier to discuss.

Step 3: Propose a Structured Review

Don't try to solve it in one heated conversation. Instead, propose:

• A two-week window where both cofounders independently research benchmarks
• A shared meeting to compare findings and discuss principles
• A follow-up conversation to finalize numbers
• A written agreement that both sign

Tools like Servanda can help cofounders formalize these compensation agreements in writing — creating clarity and accountability without requiring lawyers for every adjustment.

Step 4: Involve the Board Thoughtfully

If you have a formal board, they'll likely need to approve compensation changes. But before going to the board, present a united front. Boards respond well to cofounders who say, "We've discussed this and here's what we'd like to propose." They respond poorly to cofounders who air grievances in a board meeting.

Mistakes to Avoid

After working through dozens of these scenarios, certain patterns reliably make things worse:

• Comparing yourselves to solo founders. A solo CEO at a Series A company isn't splitting equity with anyone. Their salary norms don't apply to your situation.
• Using market data as a weapon. Benchmarks are inputs, not verdicts. Citing a report to shut down discussion isn't benchmarking — it's bulldozing.
• Assuming silence is agreement. If your cofounder didn't object to the comp plan, that doesn't mean they accepted it. They may have felt they couldn't push back.
• Tying salary to hours worked. Startup hours are impossible to measure fairly. One cofounder's 50-hour week of deep technical work isn't less valuable than another's 50-hour week of meetings.
• Letting the gap grow unchecked. A $20K gap at Series A can become a $75K gap at Series B if you don't revisit it. Small disparities compound — financially and emotionally.

A Note on Equity vs. Salary Tradeoffs

Some cofounders try to resolve the salary gap by offering additional equity to the lower-paid person. This can work — but only if both cofounders genuinely value the equity at the same level.

If your company is pre-product-market-fit, extra equity might feel theoretical. If you're growing fast with clear exit potential, it might feel generous. The key is not to use equity as a convenient way to avoid the harder conversation about cash compensation.

Any equity adjustment should also be reviewed by your attorney and accounted for properly (409A implications, vesting schedules, board approval). Don't handshake-deal equity changes.

Conclusion

The cofounder salary gap after Series A isn't inherently a crisis. Cofounders can earn different amounts and still operate as true partners. The crisis comes when the gap appears without shared reasoning, without mutual input, and without a mechanism to revisit it.

If you're about to close a round, put cofounder compensation on the agenda before the wire hits. If the gap already exists and it's eating at you, name it this week — not next quarter. And whatever you decide, write it down. The conversation you have today is the agreement you'll rely on tomorrow.

Your startup survived the fundraise. Don't let a spreadsheet be the thing that splits you apart.

Frequently Asked Questions

How much should cofounders pay themselves after a Series A?

Series A CEO salaries typically range from $175K to $250K, and CTO salaries from $150K to $190K, depending on geography and company stage, according to sources like Carta and Kruze Consulting. However, the right number depends on your shared principles, equity split, and total compensation package — benchmarks are useful inputs but shouldn't be treated as automatic answers.

Is it normal for cofounders to have different salaries?

Yes, it's common and not inherently problematic for cofounders to earn different amounts after a funding round, especially if their roles carry different market rates or responsibilities. The critical factor is that the gap is discussed openly, mutually agreed upon, justified in writing, and revisited regularly — a unilateral or unexplained gap is what causes lasting damage.

How do I bring up salary disagreements with my cofounder?

Approach the conversation directly by stating that you want to discuss the comp structure and that you'd rather surface your discomfort now than let it build. Focus on separating the dollar amount from the underlying question of whether you're still seen as equal partners, and propose a structured review process rather than trying to resolve everything in one emotionally charged discussion.

Should I take more equity instead of a higher salary as a cofounder?

Equity adjustments can help offset a salary gap, but only if both cofounders genuinely value the equity at a similar level given the company's current stage and prospects. Don't use equity as a convenient way to avoid the harder cash compensation conversation, and make sure any equity changes are reviewed by an attorney for 409A implications, proper vesting, and board approval.

When should cofounders revisit their compensation agreement?

Cofounders should review their compensation at every new funding round, on an annual basis regardless of fundraising activity, and whenever either person's role changes materially — such as a CTO shifting from hands-on coding to people management. Building these automatic review triggers into your agreement prevents small disparities from compounding into major sources of resentment over time.