Tech leaders in engineering, product, data science earn 80% more; startup CFOs pay linked to fundraising, says xto10x report

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Tech and product leaders are reaping the rewards, while chief financial officers (CFOs) are increasingly being evaluated on their ability to secure funding. As Indian startups adapt to a changing compensation landscape, leadership salaries are experiencing a significant shift.

The latest TRB (Total Rewards Benchmarking) report by xto10x, Evolving Compensation Trends—Indian Startup Ecosystem, reveals that engineering, product, design, and data science leaders are pulling ahead in the pay race, leaving behind traditional functions like human resources (HR), marketing, and finance.

xto10x, backed by Flipkart co-founder Binny Bansal, is a scaling platform dedicated to assisting growth-stage startups in navigating expansion. It helps startups with moving from early success (0 to 1) to sustainable, large-scale operations (1 to 10).

According to the report, chief technology officers (CTOs) and senior vice president (VP)-product roles command a median fixed salary of Rs 1.77 crore and Rs 1.72 crore, respectively. The gap is striking when compared to brand marketing heads earning Rs 80.6 lakh, VP-sales (B2B SaaS) at Rs 85.1 lakh, chief human resources officers (CHROs) at Rs 95.2 lakh, and CFOs at Rs 1.1 crore.

"Tech leaders in domains like engineering, product, design, and data science can command compensation up to 80 percent higher than their counterparts in HR, marketing, and other non-technical functions," the report says.

"Leadership compensation is closely aligned with the strategic priorities of a startup’s business model," it said. ". It continues saying , "It increases by 20-30% at each stage of startup growth, as early-stage firms operate with lean teams, while growth-stage and late-stage companies attract more seasoned executives."

Startups that are rapidly scaling and investing in product innovation must attract top-tier engineering and product talent, justifying the premium salaries these roles command.

The analysis further reveal that growth-stage startups allocate an average of 68% of their revenue to employee compensation.

CFOs linked to fundraising 

The fixed salary model for CFOs is fading, as startups shift toward outcome-linked compensation models.

Historically, CFOs received 10-15 percent of their salary as variable pay but that’s changing. “Some startups have introduced fundraising-linked incentive plans, where a percentage of funds raised is allocated as performance-linked pay to the CFO and the finance teams," says the report.

This means CFOs are being compensated based on how much capital they bring in. In late-stage startups, where profitability is king, financial leaders are incentivised to optimise capital efficiency and ensure sustainable growth.

Who gets paid the most? 

Salaries in startups vary widely based on how closely a function impacts revenue. Finance leaders in high-transaction sectors like D2C and logistics tech earn up to 30 percent more than their SaaS counterparts, where lower transaction intensity results in 40 percent lower salaries.

Similarly, marketing heads in B2C and D2C startups earn 10-20 percent more than those in other industries due to brand-driven sales strategies.

For engineers, industry complexity dictates pay scales. Fintech and Edtech firms offer 10 percent higher salaries for architects to support scalable systems, while D2C startups pay 21 percent lower for developers and managers due to lower technical demands.

Operations teams also see pay variations — quick commerce staff earn Rs 60,000-70,000 annually in performance incentives, whereas D2C startups, which often outsource fulfillment, offer minimal incentives.

HR salaries rise

HR roles are no longer just support functions. In talent-heavy startups, HR leaders now earn on par with business heads, as companies prioritise culture-building and employee experience. The report says startups offering innovative pay structures, including higher performance-based components, are attracting top-tier HR talent.

Those with specialised expertise such as scaling a company from 50 to 500 employees can negotiate significantly higher pay.

Fixed salaries out, variable pay the new normal 

Startups are shifting from fixed pay to performance-based models, evolving with company growth. Early-stage firms rely on commission-based incentives, but as they scale beyond $3-4 million in revenue, structured target-based plans take over.

A US-based AI startup initially used commission-heavy pay but later moved to a target-based model with quarterly resets as revenue grew, the report showed.

Variable pay is now common across functions. In SaaS startups, Customer Success Managers (CSMs) have incentives tied to Gross Revenue Retention (GRR), while Account Executives (AEs) earn bonuses based on new revenue.

Even non-revenue roles now have performance-linked incentives, as seen in a SaaS company cited by the report that allocated 25 percent of leadership pay based on competencies and behavioral traits.

The report says variable pay for non-business roles (HR, finance, engineering) remains around 15 percent of fixed pay, while business leaders (sales, marketing, growth) now see 25-50 percent variable pay, with 50 percent most common for sales heads.

“Getting compensation and payroll spends right is crucial for start-ups, especially with the growing emphasis on profitability. However, the lack of clear benchmarks often leads to sub-optimal decision-making in this area. The report aims to bring clarity and establish the right benchmarks for what is often the most significant cost-head in a start-up’s P&L," said Neeraj Aggarwal, Co-founder and COO, xto10x.