GTM Compensation& Incentives Guide
A deep dive into how leading companies structure compensation and incentives across key GTM roles, regions, and stages of growth.
As companies evolve and go-to-market strategies mature, compensation plans for GTM teams must keep pace. Roles like Account Executives, Sales Development Reps, Account Managers, and Customer Success Managers sit at critical junctions of the customer journey, and their incentives are increasingly tailored to reflect their influence on pipeline, growth, and retention.
In our 2025 GTM Compensation and Incentives Guide, we break down how compensation structures vary based on factors like customer segment, region, and company scale. We also examine how team design and incentives differ across roles and stages of company maturity. Whether you're calibrating plans to attract top talent in a competitive market or optimizing incentives for efficiency and growth, understanding the nuances behind today’s compensation benchmarks is critical.
Key Drivers of GTM Compensation: Customer Segment, Region, and Company Scale
GTM team compensation and incentives are shaped by a variety of factors, including customer segment, region, company scale, and broader macroeconomic conditions. Teams typically align incentives with the business outcomes tied to each stage of the customer lifecycle, with SDRs and AEs focused on new business and growth, while AMs and CSMs are more commonly tied to expansion and retention.
Key Takeaways:
- Among all drivers, customer segment tends to have the strongest influence on compensation, followed by region and company scale
- Sales reps in US Tier 1 markets have approximately a 15% on-target-earnings (OTE) premium compared to peers in US Tier 2 and UK/EU regions
- Company type can also play a role as AI-Native companies are paying a 10-25% OTE premium for roles like Account Executives, Channel Reps, and Account Managers
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Account Executive Compensation Trends: OTE, Equity, and Quotas
Account Executives are most commonly segmented by customer region and size, and are primarily incentivized on Gross New Recurring Revenue, Bookings, and Total Contract Value – reflecting efforts to reignite topline growth from new business.
Key Takeaways:
- Average OTE for Account Executives in US Tier 1 markets varies significantly based on segment and company scale, ranging from $150K to $400K, on average. Base salary as a % of OTE tends to remain consistent at around ~50-55%
- In addition to cash compensation, 60-70% of both early-stage (<$25M ARR) and later-stage ($500M+ ARR) companies also include equity as part of their incentive packages for AEs – often as a way to attract or retain top-performing talent
- On the quota side, on-target earnings (OTE) have increased across all segments in US Tier 1 markets since 2023, largely driven by rising quotas. On average, quotas have increased by 20-30%, underscoring a broader shift toward growth-focused sales targets
Compensation, Incentive, and Segmentation Trends for SDRs, AMs, and CSMs
Similar to Account Executives, Sales Development Reps (SDRs), Account Managers (AMs), and Customer Success Managers (CSMs) are primarily organized by customer size and region. However, their incentives are tailored to their touchpoints across the customer journey.
Key Takeaways:
- For SDRs, variable compensation is most often tied to sales-qualified leads (SQLs) and pipeline dollars closed-won, signaling an emphasis on lead quality and conversion potential
- AMs and CSMs are more focused on growing existing accounts and securing renewals. AMs are typically incentivized on renewals, expansion revenue, and bookings, reinforcing their role in driving account growth and retention.
- CSM incentives are shaped by their scope of responsibility – whether they own renewals only, or both renewals and expansion. Across company stages, CSMs are generally measured on retention and expansion, with a growing emphasis on product adoption as companies mature and introduce multi-product offerings
As GTM teams evolve to meet new customer expectations and macro pressures, compensation structures are becoming more nuanced, and more strategic. From segment-driven OTE differences to role-specific incentives that reflect lifecycle touchpoints, today’s benchmarks offer a blueprint for building high-performing, aligned teams.
For a deeper dive into compensation trends across GTM roles, download the full 2025 GTM Compensation and Incentives Guide below.
Disclaimer
The views expressed in this presentation are those of ICONIQ Venture & Growth ("ICONIQ" or the "firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision.
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Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information.
All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events.
For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.
ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.
Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.
ICONIQ is a trading name of certain ICONIQ Partners (UK) LLP. ICONIQ Partners (UK) LLP (Registration Number: 973080) is an appointed representative of Kroll Securities Ltd. (Registration Number: 466588) which is authorised and regulated by the Financial Conduct Authority. ICONIQ Partners (UK) LLP is a limited liability partnership whose members are ICONIQ Capital (UK) Ltd, Seth Pierrepont and Lou Thorne, and it is registered in England and Wales and has its registered office at 27 Soho Square, London W1D 3QR. ICONIQ Partners (UK) LLP acts as an adviser to ICONIQ Capital LLC
Unless otherwise indicated, the views expressed in this presentation are those of ICONIQ Venture and Growth (“ICONIQ" or the “Firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision. Information used in this presentation was obtained from numerous sources. Certain of these companies are portfolio companies of ICONIQ Venture and Growth. ICONIQ Venture and Growth does not make any representations or warranties as to the accuracy of the information obtained from these sources.
This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services. Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein.
Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized.
This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ.
Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information.
All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. Numbers or amounts herein may increase or decrease as a result of currency fluctuations.
For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.
ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.
Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.
ICONIQ is a trading name of ICONIQ Partners (UK) LLP. ICONIQ Partners (UK) LLP (Registration Number: 973080) is an appointed representative of Kroll Securities Ltd. (Registration Number: 466588) which is authorised and regulated by the Financial Conduct Authority. ICONIQ Partners (UK) LLP is a limited liability partnership whose members are ICONIQ Capital (UK) Ltd, Seth Pierrepont and Lou Thorne, and it is registered in England and Wales and has its registered office at 27 Soho Square, London W1D 3QR. ICONIQ Partners (UK) LLP acts as an adviser to ICONIQ Capital LLC