Most COO salary numbers online come from big companies. If you own a 150-person contractor, a national average built on corporate operators won't set your offer.
The public numbers are still the right place to start. Then adjust them for what your company needs from the seat, and build the package around how the role will be measured.
What COOs earn: the public numbers
The Bureau of Labor Statistics files COOs with chief executives, so its numbers blend COOs and CEOs. Its May 2025 figures for that group, across every industry in the US:
| 25th percentile | Median | 75th percentile | |
|---|---|---|---|
| Chief executives, including COOs | $130K | $214K | $356K |
Because CEOs are in it, the table runs a little high for a COO. It also doesn't split by company size.
And it leaves out year-end bonuses and long-term pay like phantom equity. That's where a COO's pay at an owner-led company moves most.
COO pay by industry
The same BLS group, broken out by the industries we recruit in:
| Industry | 25th percentile | Median | 75th percentile |
|---|---|---|---|
| General contractors (building construction) | $163K | $220K | $341K |
| Civil and heavy construction | $144K | $224K | $306K |
| Specialty trades (HVAC, electrical, plumbing, roofing) | $101K | $169K | $283K |
| Engineering and architecture firms | $149K | $219K | $343K |
| Fabricated metal manufacturing | $138K | $207K | $314K |
| Machinery manufacturing | $140K | $220K | $353K |
| Services to buildings (landscaping, pest control and the like) | $102K | $130K | $209K |
The gap between the median and the 75th percentile is wide in every row. Company size explains most of it, and a public table can't show it.
COO pay by metro area
Where the job sits matters as much as the industry. All industries, May 2025:
| Metro area | 25th percentile | Median | 75th percentile |
|---|---|---|---|
| Birmingham, AL | $137K | $167K | $238K |
| Huntsville, AL | $163K | $214K | $260K |
| Nashville, TN | $133K | $218K | $330K |
| Atlanta, GA | $150K | $276K | $418K |
Birmingham's number comes from about 190 people in the role, so treat it as a rough guide. If you're hiring from Atlanta into Birmingham, the candidate will compare your offer to Atlanta's numbers.
What moves the number
Headcount and complexity. A COO running 3 locations and 250 people has a different job from one running a single yard and 60 people. Size the offer to the company you'll be in 3 years, since that's the company you're hiring for.
Whether this is your successor. If the COO is the person you expect to hand the business to, the package needs a longer horizon. That usually means a path to equity, and it changes who will take the call.
Industry experience. A COO who has run work in your industry is who your competitors want too. Candidates from outside the industry can cost less, and they take longer to earn the field's trust.
What they'd walk away from. The COOs worth hiring are usually not looking. Moving means leaving a bonus they can count on and a team that trusts them, so the offer starts from their current total pay, bonus history included.
Relocation. A move adds cost, and it adds a second decision maker at home. Plan for both.
How to structure the package
Base salary. This is the number candidates compare first. Set it from the market data above and what you learn in the first conversations.
Annual bonus. Tie it to results the COO controls, like gross margin and project delivery. Put the formula in writing, with a target and a cap. A bonus the owner decides at year end feels like a gift, and it won't move a candidate who already has a formula.
Long-term pay. Phantom equity or a profit share keeps a COO through the years when the work is hardest. Vesting over 3 to 5 years ties the payout to staying. Have your CPA and attorney set it up.
The rest. A vehicle or allowance is common for operators who spend their week on job sites. Count benefits and time off too, because the candidate will.
Before you make the offer
Know the candidate's current total pay, including what their bonus actually paid in each of the last 3 years. Expect a counteroffer from their current employer, and decide ahead of time how far you'll go.
The free offer worksheet at the top of this page walks through base, bonus, long-term pay and the rest, side by side with the candidate's current package.
A COO hire is one of the most expensive decisions an owner makes, and the salary is only part of the cost. Our cost of a bad hire calculator puts a number on the rest. For the search itself, we've written about how to hire a COO and the difference between a chief of staff and a COO.