VC Investors Don't Scrimp On Managers

October 8, 2002 ( - Even though many venture investors have become increasingly tight-fisted with their money, they're still willing to pay a premium to keep quality managers in their ranks.

According to an Electronic Business news story, the median base pay for CEOs of venture-backed companies increased to $200,000 in the first half of 2002, up from $190,000 during the same period last year, reports VentureOne. a San Francisco-based venture capital research firm.

Vice president and director-level positions also saw similar increases.

CEOs in the IT sector–in which VentureOne includes software, communications, semiconductors, information services and electronics–didn’t fare quite as well as their brethren in the healthcare industry, according to Electronic Business.

Consistent with overall VC investment trends, more money has been pumped into healthcare than other industries, driving salaries up. In the first half of 2002, healthcare CEO salaries increased to $215,000 from $200,000, while IT salaries remained flat at $185,000.

However, bonuses have taken a beating. CEO bonuses at venture-backed companies have remained flat for the past two and a half years, VentureOne found. The percentage of venture-backed companies offering bonuses has declined considerably since the first half of 2001.