Chief executive officers at U.S. venture-backed technology companies are earning nearly $30,000 more per year in total compensation than they did a year ago.
CEOs in Silicon Valley and the Northeast enjoy the best deals overall.
The data, compiled by Dow Jones, shows that technology CEOs are earning a median $289,000 this year, up from $260,000 last year. See table below, which also shows how much vice presidents and directors are making.
Total compensation, which includes salary and bonuses, for CEOs of venture-backed healthcare companies also climbed to a median $300,000, from $284,000 a year ago. Total CEO compensation increased somewhat for the other industry tracked, products and services, to $260,000, about $10,000 higher than the year before.
Technology CEOs received the largest equity allocations of the three major industries, at 4.9 percent, compared to 4.7 percent for healthcare CEOs and four percent for “product & services” CEOs.
The survey found the median total CEO compensation across industries is 275,000, up from $263,000 a year ago. The amount of equity in their companies that CEOs reported receiving is 4.7 percent, a decline from the five percent equity allocation reported last year.
CEOs based in the Northeast do earn the largest total compensation packages, at $310,000, edging out Northern California at $300,000. However, Northeast CEOs get a median of 4.69 percent ownership of a company, less than the 4.99 percent among Northern California CEOs.
Dow Jones’ data offering, called CompensationPro, compiles data on 135 different job titles at 734 venture-backed companies—representing nearly 7,800 individuals.More than 700 executives at U.S. venture-backed companies participated in the survey, which is annualized as of April 2007
3 Comments
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Pvilly said:
Curious if you had data for CFOs?
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AMehta said:
I am assuming that the % ownership figures here are for companies just got funded or in other words still have that start-up risk? Am I right?
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Sad Very Sad said:
Sad very sad, bankers and money managers on Wall street (in alternative investment areas HF, PE, IB) who are in there late 20s to early 30’s (who graduate out of those top 10 MBA programs) make more money than these 35 to 45 year old entrepreneurs who are equally brighter and more experienced (but less fast tracked). I supposed these vested 120K of loans earns them a ticket to some lucrative financial return. These entrepreneurs put in serious hard work and time to get to the point of where they are. While these numbers are warranted, because these entreprenurs are visionary and hardworking, typical pursuants of the American dream, I think something is broken. I supposed Wall Street is broken, which explains its death spiral of greed in 2008. This also explains why there is very little venture-banked companies in the New York metro region. Why go to VC when Wall Street offers you more structure, less uncertainty (prior to 2008), and better pay. I think with banking falling with those respective salaries, VC activity will increase in the region. Less focus on short-term liquid transactions, more long term oriented strategic investments to benefit the growth of society… My 2cents.
