Private Companies Entice Tech and Exec Talent with Big Bucks
“It’s common knowledge that high profile public companies like Google and VMware pay big bucks, but we see private companies – hungry for talent – shell out $160,000 for a top developer plus a big chunk of pre-IPO stock,” said David Broman, Syzygy’s CEO, in a news release. Brian Andriuzzo, Syzygy’s CFO, also noted in the release the number of private companies providing cash compensation to board members doubled in 2007, and the survey found a dramatic increase in the use of annual stock grants.
The survey found comprehensive health care benefits packages are also commonplace, and 90% of the companies are contributing to employee tax-deferred retirement plans.
Other key findings of the survey include:
- Aggregate employee ownership increased 10%, jumping from 15.13% to 16.64% of a company’s total shares outstanding.
- Stock options remained the dominant means of providing employees with equity, however, use of performance-based stock option grants doubled, now provided by 48% of the companies surveyed.
- Restricted stock, which is outright grants of stock to employees, saw a slight increase in prevalence, from 24% to 26%.
- CEO and executive pay also increased. The typical executive team now holds more than 8% of the company – a powerful incentive for top performers.
- The software industry showed the largest increase in overall employee ownership – jumping to 20% in 2007. Annual cash compensation showed a nearly identical leap.
For more details about the 2007 survey results, contact a Syzygy compensation consultant at 925-284-3669 or visit www.syzygyconsulting.com .
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