Head Of Engineering Salary Overview

Compensation for Heads of Engineering is influenced by factors such as company size, industry sector, geographic location, years of leadership experience, and specialized skills in managing large teams or high-scale systems.

National Average: $160,000 - $275,000 per year

Entry Level $160K
Mid Level $185K
Senior $210K
Specialized/Lead Role $240K
Manager/Director $275K

Experience-Based Salary Ranges

Entry Level (0-2 years)

$160,000 - $180,000

Mid Level (3-5 years)

$180,000 - $210,000

Senior Level (6-9 years)

$210,000 - $240,000

Manager/Director (10+ years)

$240,000 - $275,000+

Entry Level (0-2 years)

  • New to engineering leadership roles
  • Manages small teams or tech initiatives
  • Usually promoted from senior engineer or team lead roles
  • Often found in smaller startups or tech teams

Mid Level (3-5 years)

  • Oversees multiple teams or cross-functional squads
  • Leads medium-sized engineering orgs (10–30 engineers)
  • Contributes to technical architecture and hiring strategy
  • Typically found in growth-stage startups or mid-market firms

Senior Level (6-9 years)

  • Defines engineering roadmap and scaling strategy
  • Collaborates closely with product, design, and executive team
  • Manages senior engineering managers and ICs
  • Seen in Series C+ startups and established tech companies

Manager/Director (10+ years)

  • Heads engineering orgs across multiple verticals
  • Sets org-wide tech vision and builds long-term culture
  • Directs budgets, vendor relations, and strategic hiring
  • Often part of executive leadership team (C-level or VP)

Regional Salary Variations

Geographic location significantly affects compensation for Heads of Engineering. Tech hubs like San Francisco and New York offer premium salaries due to cost of living and competition for talent.

New York City

$200,000 - $270,000

San Francisco

$220,000 - $300,000

Chicago

$180,000 - $250,000

Los Angeles

$185,000 - $260,000

Dallas

$170,000 - $235,000

Atlanta

$165,000 - $230,000

Phoenix

$160,000 - $225,000

Remote (US-based)

$175,000 - $255,000

  • Major metro areas pay more but have higher living expenses
  • Remote roles can command competitive salaries with lower overhead
  • State income tax impacts net compensation
  • Company HQ location may influence compensation bands

Industry Salary Comparison

Compensation for Heads of Engineering varies widely depending on the industry. Tech-first companies often offer higher base salaries and generous equity packages, while traditional industries may provide more stability and benefits.

Industry Salary Range Bonus/Equity Growth Potential
Technology (SaaS, Fintech, AI) $200,000 - $300,000 High Very Good
Healthcare & Biotech $185,000 - $265,000 Moderate Good
Retail & eCommerce $180,000 - $250,000 Moderate Stable
Finance & Insurance $190,000 - $260,000 Low Stable
Manufacturing & Logistics $170,000 - $235,000 Low Limited

Job Outlook and Career Growth

As companies scale their digital infrastructure and adopt cloud-native, AI-driven technologies, the demand for experienced engineering leaders continues to grow.

  • High demand in fast-growing SaaS and fintech sectors
  • Leadership roles evolving to include AI/ML oversight
  • Remote-first organizations expanding global hiring for this role

Salary Negotiation Tips

Negotiating at the executive level requires clear documentation of past achievements and strategic alignment with business goals.

Preparation Strategies

  • Benchmark Against Industry

    Use reliable salary benchmarks and compensation databases for your specific region and industry.

  • Quantify Leadership Impact

    Prepare examples of how you’ve scaled teams, improved delivery, or reduced technical debt.

  • Know Your Leverage

    Understand your unique value proposition: rare tech stack expertise, team-building track record, or turnaround success.

  • Stock & Equity Clarity

    Evaluate total comp including RSUs, options, and performance bonuses.

During Negotiation

  • Lead with Outcomes

    Frame negotiations around business impact you've delivered, not just time served.

  • Negotiate Total Package

    Include base, bonus, stock, benefits, professional development, and leave.

  • Stay Flexible Yet Firm

    Be open to alternatives (sign-on bonus, equity refresh) but clear on your must-haves.

  • Ask for Reviews

    Tie comp increases to agreed milestones and performance reviews.

  • Don’t Rush

    Take time to review offers holistically and consult trusted advisors or mentors.