AI Talent Takes Center Stage: 2025 Tech Executive Compensation Trends Revealed

2025 Report Reveals Key Trends in Tech Executive Compensation

The tech industry is changing how it values and pays executive talent. With AI reshaping business priorities and leadership needs, knowing current compensation standards is critical to staying competitive. Riviera Partners' 2025 Executive Compensation Report provides a detailed look at pay trends across venture capital-backed, private equity-backed, and public tech companies.

Executive compensation has become more than just a negotiation point—it's a strategic lever to drive growth, retain talent, and maintain an edge in the market. The report, available exclusively to Riviera’s clients and partners, sheds light on salary, bonus, and equity packages for leadership roles in diverse tech environments.

AI Leadership Commands a Premium

One major shift is the rising demand for AI and data-focused executives. Roles such as Chief AI Officer and Head of AI Product often carry higher total compensation than traditional leadership positions like CTOs or CPOs. This reflects the strategic value of executives who can embed AI into products, processes, and platforms.

As AI adoption speeds up, companies seek leaders who can innovate, scale AI infrastructure, and ensure ethical deployment of AI technologies. These leaders are crucial for maintaining competitive advantage in a tech landscape increasingly driven by data and automation.

Compensation Trends in VC-Backed Firms

• Equity-Rich Offers: Early-stage VC-backed companies, especially seed and Series A, maintain stable base salaries but make up for it with substantial equity grants. Equity packages average around 1.2% in these firms.
• Stronger Incentives: Sign-on bonuses for Series A and later-stage executives average 14% of base salary. Mature startups are customizing compensation to attract AI and engineering leadership.

Shifts in Private Equity-Backed Companies

• Performance-Linked Pay: Private equity firms increasingly tie compensation to company milestones and long-term growth, focusing bonuses on EBITDA and operational efficiency.
• M&A Expertise Valued: Executives with mergers and acquisitions experience command higher compensation, reflecting their importance in managing transitions and growth.

Public Companies: Focus on Operational Impact

While base salaries and annual bonuses remain mostly flat, expectations for executives have shifted. Leaders are now expected to deliver broad enterprise impact, especially in technology modernization and platform innovation roles.

Private Equity’s Leadership Demands

Private equity firms seek leaders who combine financial acumen with strategic insight and operational excellence. The ability to grow businesses, improve EBITDA, manage exits, and lead through disruption is essential.

Beyond numbers, cultural leadership and stakeholder engagement are highly valued. Leaders must balance vision with execution, driving efficiency while retaining talent and fostering innovation amid economic uncertainty.

Public companies integrating AI into operations look for executives who can lead data strategy and innovation, often rewarding them with a mix of salary, equity, and performance incentives.

EMEA’s Growing Focus on AI and Local Talent

In Europe, the Middle East, and Africa, AI integration is a top priority for leadership teams. Companies seek candidates who combine technical expertise with business strategy in product and engineering roles.

Local presence matters, with hubs like London, Berlin, Paris, and Barcelona favored. Southern Europe is emerging as a rich talent pool in engineering and product leadership.

Competition to Attract and Retain Executives

Companies face intense competition for executive talent, pushing many to enhance compensation packages. Blended cash and equity, with a focus on performance-based incentives, are becoming standard to align leadership pay with long-term goals.

Equity compensation is increasingly variable, tied to measurable outcomes such as AI innovation, platform upgrades, and cost savings.

Economic Uncertainty Shapes Public Company Pay

Public companies are becoming more selective in hiring due to economic volatility, prioritizing leaders who deliver quick, measurable results. Market cap declines have reduced available equity, shifting focus toward performance bonuses and cash-heavy offers.

Executives in product, engineering, and platform leadership now often have compensation linked to enterprise-wide impact rather than just growth. Companies provide clearer equity terms, including downside protection and liquidity timelines, to attract cautious candidates.

About Riviera Partners

Riviera Partners is a global tech recruiting firm combining recruiter expertise with data-driven candidate insights. The firm has placed executives at leading tech companies such as Pinterest, Tinder, Uber, and GitHub, and works with top venture firms like Andreessen Horowitz and Sequoia.

Using machine learning algorithms, Riviera identifies specialized candidates from a pool of 600,000 professionals across tech hubs worldwide. The firm typically delivers candidate shortlists within 30 days and boasts a success rate above 95%.