HubSpot CEO Doubles Her Pay to the Tune of $25.9m
Yamini Rangan, CEO of HubSpot, was reportedly paid a total of $25.9m in 2023, making her one of the highest-paid women CEOs in the world.
This marks a 120% increase on the $11.8m that she received in 2022, highlighting the success that the CRM stalwart has enjoyed in recent times.
The figures – released in the firm’s proxy statement last week – reveal that the bulk of Rangan’s remuneration came from shares, with the CEO receiving approximately $22m in stock awards.
The statement also confirmed that in 2023 Rangan had voluntarily elected to receive a base salary of just $1, as well as refusing any cash bonus payments under the company’s Bonus Plan.
The numbers being reported mean that Rangan received 149 times more than the average HubSpot employee salary of $173,000.
In a list of the highest-paid women CEOs in the world compiled by CEO World Magazine roughly a month before HubSpot’s proxy statement, Rangan’s reported earnings would position her in fifth place – behind the likes of Accenture’s Julie Sweet and Mary Barra of General Motors.
Yamini Rangan’s earnings make her the fifth highest-paid woman CEO in the world.
For comparison, Eric Wu of OpenDoor Technologies is fifth on a list of the highest-paid men CEOs, earning $388m per year.
Is Yamini Rangan Responsible for a HubSpot Renaissance?
Having taken over as CEO from Brian Halligan in 2021, Rangan had previously worked as the company’s Chief Customer Officer – a role she also held at Dropbox prior to joining HubSpot.
The details of Rangan’s salary increase follows the news from February this year that Hubspot had seen a 58% increase in share prices compared to the previous 12 months, with the company also announcing that it had surpassed 100,000 paying customers and hit $1 billion in annual recurring revenue – two significant milestones for Rangan’s tenure.
Rangan also played a key role in the implementation of HubSpot’s new seat-based pricing model in March of this year.
The system means that new customers may experience an increase of up to five percent in costs; while existing customers will maintain their current pricing until their next renewal, at which point they will experience an adjustment in fees.
In discussing the new pricing model, Rangan stated that the shift was part of the company’s strategy to “make HubSpot easy-to-use and easy-to-buy.”
What’s next for Yamini Rangan?
Having overseen a very successful 2023, Rangan – like the majority of her contemporaries – appears to be focusing on the CX sector’s most popular topic for 2024: generative AI (GenAI).
In a recent post on LinkedIn, the CEO claimed that “2023 was a year of Gen AI hype. 2024 will be the year of Gen AI value,” arguing that organizations will need to move beyond quick wins and start using AI to deliver tangible results and meaningful business impacts.
However, despite her intentions, Rangan’s future may be somewhat out of her hands, following the news that Google is weighing up a potential HubSpot takeover.
According to sources from Reuters, Google’s parent company, Alphabet, has sought advisors to explore a potential offer for HubSpot.
HubSpot’s market capitalization stands at approximately $33.95 billion as of April 2024, making it a considerable acquisition target for Alphabet, potentially its largest to date.
Alphabet appears financially prepared for such a move, with a reported cash reserve of $110.9 billion by the end of 2023.
However, regulatory concerns within the US tech sector, including ongoing antitrust cases against Google, may present obstacles to the acquisition.
You can read the full story about Google’s possible acquisition of Hubspot here.
