Those fortunate enough to survive the shakeout could see
an average salary increase of between 7.7% and 9.7%,
according to the study. That compares to 4.4% in the
general economy and 5.7% for technology businesses.
While base salaries are expected to rise, the dot.coms
are also using mixed compensation packages comprised of
stock and cash, and non-monetary rewards as an added
incentive, the study said.
More than eight out of 10 Internet and e-commerce companies (84%) use stock as a type of compensation. Geographically, this practice was more prevalent in the Western states – and Silicon Valley – which saw a high of 92%. Central states were at the other end of the scale, with stock compensation a factor at just 74% of respondent firms.
Among those that use stock as a form of compensation:
- 94% offer stock options
- 33% offer employee stock purchase plans
- 22% offer 401(k) or other savings plans with company stock
Hiring bonuses are also being offered as incentives, with over 40% of the survey respondents saying they offer some form of stock bonuses, as follow:
- 34% – senior executives
- 22% – management
- 22% – professional or technical
- 8% – non-exempt employees
Between 17% and 35% of Internet and e-commerce companies conduct salary reviews more than once a year, according to the study.
The most common form of incentive pay for senior executives:
- 85% – annual bonuses
- 16% – spot awards
- 16% – key contributor retention awards
- 13% – cash profit sharing
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