NZ startup founders paid $205,000 on average, gaps remain

The New Zealand Founder Pay Report 2025 has been released, providing detailed insights into how startup founders in Aotearoa are remunerated and drawing attention to notable disparities in pay based on gender, role, geography, and company size.

The report, produced by LiveRem and Oxygen Advisors, is based on anonymised payroll data from founders at startups and scaleups nationwide, with participating companies ranging from those earning under NZD $1 million to more than NZD $10 million in annual revenue and employing teams from a handful to more than 100 staff.

Analysis reveals that founders begin remunerating themselves on average after 29 months of business operation. Revenue is a significant determinant of salary: founders at companies generating more than NZD $10 million in annual revenue earn twice as much as their counterparts at firms bringing in less than NZD $1 million.

The average founder salary stands at NZD $205,000, with half of the founders paying themselves over NZD $195,000 per year. For founders at companies with revenue under NZD $3 million, the average salary is NZD $146,000, rising to NZD $292,000 for founders at companies with more than NZD $10 million in revenue.

Gender remains a significant factor, with male founders paid, on average, 8% more than female founders. The gap widens to 25% when measured by median salary. This pay gap is one of several observed in the report, which also finds founders in Auckland receive 18% higher pay compared with peers elsewhere, and that technical founders earn 20% less than those in CEO roles.

"Founder pay is a taboo topic. Without reliable data, many founders default to 'as little as possible', risking burnout, inequity and blind-spot budgeting. Yet, paying yourself isn't just a line in Xero; it's a strategic call that shapes how long you can lead and how well you can live," Kathleen Webber, Co-Founder and Chief Executive of LiveRem, said.

"We see companies wrestle with this every day. Pairing LiveRem's live benchmarks with Oxygen Advisor's modelling means boards can set pay that's fair today and sustainable tomorrow," Mike Mandis, Co-Founder and Co-Chief Executive of Oxygen Advisors, added.

The report finds that 42% of founders are paid less than at least one team member, and 56% of founders who achieve a successful exit do so after six to seven years. The longer payoff period for founders is highlighted, suggesting immediate returns are not the norm.

Wellbeing is closely linked to salary, according to feedback from founders. Webber observed, "Importantly, founders also told us that their pay cheque isn't about lifestyle upgrades – it's about mental bandwidth." Founders participating in the survey echoed this sentiment, sharing: "I started by not paying myself at all for quite a while ... (then) I started to pay myself just enough to not have to worry about survival ... at no stage have I paid myself what I used to earn before starting the business ... the reduced salary will become a burden on family life."

"At the beginning, we paid ourselves next to nothing ... Over time, our approach has shifted ... setting salaries that are right for our size and stage, not just what we can scrape by on ... Being able to work toward personal goals like saving for a house has lifted a big mental load ... it frees up headspace to focus on growing the business," another founder commented.

Mandis believes these insights underscore the connection between remuneration and resilience.

"Both of these underline a core insight from the report: salary is also a wellbeing lever. Paying too little may buy runway – but could be a tax on resilience; paying a sustainable, stage-appropriate sum keeps founders and by extension, their companies healthier for the long haul," Mandis said.

Moreover, Webber noted that disparity in founder profiles remains, saying, "Our dataset also shows the 'typical' Kiwi startup founder is a 40-year-old man in Auckland. When that profile is still the norm, it's clear we've got a long way to go in building a more diverse pool of founders."

"In general, it's important to have as many accurate data points as possible when making remuneration decisions to map out fair, sustainable salary structures. Coupled to metrics such as growth relative to spend and ratios of spend (on R&D or CAC), salary benchmarking becomes strategic rather than a gut feel exercise. When the numbers line up, founders can show investors (and themselves) that every dollar, whether paid in payroll or poured into product, is pulling its weight for long-term growth," Mandis elaborated on the value of data for decision-making.

"As a country, we have to ask how many great ideas never see daylight because the personal cost is just too high. If New Zealand wants more world-class startups, we need better government–industry partnerships – that may include targeted grants, matched-funding or smarter tax settings that shortens the runway and makes entrepreneurship a career path people can afford to choose," Webber stated expressing concerns regarding barriers to entrepreneurship in New Zealand.

LiveRem, which provides a real-time salary benchmarking platform using live payroll data, and Oxygen Advisors, an accounting and financial advisory service for startups and scaleups, collaborated to combine their insights for this report. Webber explained, "Think of it as having a full-time compensation analyst on every pay run, but automated, affordable and always current."

"The numbers are now on the table and with the NZ Founder Pay Report 2025 in hand, founders, boards and investors finally have an objective baseline for setting pay that fuels both performance and personal stamina. LiveRem will keep the dataset live and growing, while Oxygen Advisors turns those insights into actionable pay strategies – because when remuneration decisions are grounded in real-time evidence, startups stay healthier, talent sticks around and the ecosystem is empowered to take steps closer to true diversity," Mandis concluded.