Benefits July 22, 2003

Tech Execs See 6.3% Increase In Cash Compensation

July 22, 2003 (PLANSPONSOR.com) - Amid declining revenues, cash compensation for high-tech executives increased in 2002 an average of 6.3%.
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Cash compensation increases were recorded in three out of four high-technology sectors, with the median cash compensation increasing the most among software executives, up 7% from 2001’s figures. In fact, only semiconductor executives noticed a dip in cash compensation, down 9.4% in 2002, according to data from Culpepper and Associates.

The other two industries both saw executive cash compensation increases 5.2% in 2002, IT services and hardware. However, it was only IT services that saw increases in both cash compensation figures and revenue, which increased 2.5% from 2001 to 2002. The other industry sectors all saw revenue declines, averaging a negative 3.6% revenue return during that time period:

  • hardware -4.5%
  • software -5.8%
  • semiconductor -7.5%

Further, increases were noted in 10 out of 11 different executive positions, the largest cash compensation increases recorded among general counsels, up 18.2%. This performance was followed by increases for:

  • Subsidiary General Managers/Division Presidents (15.3%)
  • Sales & Marketing (8.1%)
  • Product Development & Manufacturing (7.0%)
  • Professional Services (5.2%)
  • Chief Financial Officers (5.1%)
  • Chief Technology Officers (3.5%)
  • Corporate Development (3.5%)
  • Chief Operating Officers (3.3%)
  • Chief Executive Officers (1.3%).

However, evening out the averages was the precipitous 22.6% decline among non-CEO, chairman of the board cash compensation totals.

More information and a full copy of the report can be found at http://www.culpepper.com/ .

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