Electronics industry is hot spot for chief exec pay
Published: 19 Sep 2001 16:42 BST
The top executives at electronics, information services and communications companies outpaced the median total compensation package of $216,000 (£147,000) for chief executives at start-ups in all industries, according to the survey by research firm VentureOne.
Last year, the median was $205,000 (£139,000).
Despite the market turmoil, chief executives earned more money and in most cases grabbed bigger equity stakes this year than during the same period a year ago.
"In the tech industry, you have forces pulling both ways," said Jon Holman of San Francisco-based executive recruiting firm The Holman Group. "The fact that it's harder for these private companies to get funding and fewer deals going around, you'd think the compensation would go down. But there's the factor of looking for 'A' players who have good jobs, and this economy is guarding them with their lives. It's getting even harder to pry these people from their jobs."
According to the study, the median compensation and equity stakes for chief executives were as follows:
- Electronics: $232,500 and a 15 percent stake.
- Information services: $220,000 and an 8.1 percent stake.
- Communications: $217,500 and a 9.4 percent stake.
- Software: $209,000 and a 12 percent stake.
- Semiconductor: $200,000 and an 11 percent stake.
Holman said equity stakes have been driven up mostly by the market's decline. A prospective chief executive, who may have once been willing to take a smaller stake, now expects a larger stake to have a better chance of making financial gains.
The pay gap between founder chief executives and non-founder chief executives, as well as chief technology officers in the same categories, is wide.
Founder chief executives at information technology companies made a total compensation package of $180,000 and held an 11.2 percent stake during the first half of this year. But non-founder chief execs raked in $250,000 with a 10.1 percent equity stake.
Chief technologists who founded their respective companies made $152,000 this year, with a 6.74 percent stake. But non-founder chief technology officers grabbed a total compensation package of $175,000 and received nearly a 2 percent stake.
Holman noted that founders historically have earned less money than subsequent Ccief executives and chief technology officers at their companies because they were compensated with a large equity stake. Although non-founder chief executives and chief technology officers also received healthy options grants themselves, often it was at strike prices far less than those of the founders.
Have you used the ZDNet Salary Checker recently? See what you are worth
For all job and work-related news, or to search for a job and get information on training, go to ZDNet Jobs
If you have something to say about work and employment issues say it here at the Jobs Forum
Did you find this article useful?
43 out of 64 people found this useful
Digg
Slashdot
Del.ici.ous
Stumble
Reddit
