showed a 3.7 percent increase compared with executive compensation in 2010 for the technology sector. “In tech, we’ve come off the bottom of the market,” Lapat says. “We’re seeing that reflected in compensation movement.” According to the survey, non-founder technology CEOs brought in average base salaries of $242,000 in 2011, up from $233,000 in 2010.
Based on the survey’s history, Lapat says the increases among executive salaries for the technology sector are not insignificant. In the twelve years the survey has been conducted, the previous greatest change in the technology sector was between 1999 and 2000 when the results showed a 7.9 percent increase. The lowest change was between 2008 and 2009. “It was virtually zero,” he says.
Lapat expects executive compensation increases to continue this year for the tech sector and, based on historical data, believes there will be some gains for life sciences. But, he adds, “I don’t think we’re going to see anything dramatic in 2012.”
Quashing some East Coast vs. West Coast rivalry chatter, Lapat says historic data from the survey showed that geography had little effect on how senior executives in technology were compensated. Headcount, number of funding rounds raised, and revenue had more influence on executive compensation, he says. “[Geography] does have statistical relevance but it almost has none,” he says. “When you look at all the data across the years, there is no consistency.”
[All information below includes data on founder and non-founder salaries]
Technology CEO mean base salaries by sector in 2011
Software: $204,800
Communications: $211,700
Hardware/Semiconductors: $197,900
IT Services/Consulting: $234,500
Digital Media/Content/Information: $203,200
Cleantech: $215,600
Life Sciences CEO mean base salaries by sector in 2011
Therapeutics: $296,200
Devices: $253,500
Tools/Instrumentation: $235,000
