R&D Compensation & Incentives: 2024 Engineering Organization Analysis

ICONIQ analyzes compensation costs for engineering organizations in 2024, finding that compensation accounts for 70-80% of R&D OpEx and is primarily driven by company stage and geography. Late-stage companies pay 29% higher median total cash compensation (TCC) than early-stage companies, while tier 1 geographies command 21% higher compensation than tier 2. The report recommends balanced evaluation approaches using both qualitative and quantitative metrics rather than velocity-based assessments alone.