CRO Cost Calculator
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Variable Compensation (50%): $100,000
Using a Recruiter? (30% fee)
Signing Bonus Included? (15% average)
Year 2 Merit Increase? (5% average)
Fixed Variables
- Average CRO Tenure: 24 months
- Onboarding Period: 6 months
- Full Ramp: 12 months
- Employer Contributions: 30%
Warning:
- 50% Increase in CRO Turnover (2022–2023)
- 70% of CROs are Fired by Their Company or Board
- Year 3 revenue growth declines 4% the year after a CRO leaves a company
Additional Impacts:
- Revenue Declines: 62% of companies report flat or declining revenue growth the year after a CRO leaves an organization.
- Customer Trust Erodes: High turnover disrupts relationships, damaging your reputation.
- Organizational Chaos: Each new CRO brings a new playbook, leaving your team starting over every 24 months.
Sourced from Harvard Business Review - "The High Costs of Chief Revenue Officer Turnover"
59% of CEOs express a lack of confidence in their CRO's ability to drive commercial success for their organization.
Before committing to an executive hire with an average tenure of just 24 months, consider all your options. PerformanceLabs provides innovative solutions that achieve the same results—at half the cost.
Cost Summary
Year 1
- Base Salary: $200,000
- Variable Compensation: $100,000
- Employer Contributions: $60,000
- Recruiter Fee: $0
- Signing Bonus: $0
- Total Cost: $360,000
Year 2
- Base Salary: $200,000
- Variable Compensation: $100,000
- Employer Contributions: $60,000
- Total Cost: $360,000
2-Year Total Cost
$720,000
Performance Impact
Your New CRO's ability to impact revenue:
- Months 1-6: No impact
- Months 7-12: Partial impact
- Year 2: Full impact
- Statistics show that a year 3 is unlikely