Executive Compensation at Venture-Backed Startups Grows Nominally in 2002; Base Pay for Executives Up, Bonuses Down, According to VentureOne's Latest Survey.
SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- VentureOne, the premier source of information on the venture capital industry, today announced the results of its most recent executive compensation survey. VentureOne's findings show that base salaries for executives at venture-backed companies increased slightly over the past year, while bonuses remained flat or decreased year over year.
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 the previous year. VP- and director-level positions saw similar increases. But whereas bonuses for CEOs remained flat year-to-year, the bonuses for vice presidents and directors at venture-backed companies fell. Bonus amounts for VPs showed the greatest decrease in dollar terms, from a median of $32,450 to $25,000.
"Since bonuses are often tied to individual or company performance, they are more responsive to changing market conditions. Decreases of this kind are to be expected in a difficult economic climate," noted John Gabbert, Vice President of Worldwide Research at VentureOne.
Indeed, the percentage of venture-backed companies offering bonuses to employees has declined considerably since the first half of 2001. This drop is especially evident in the regions most affected by the dot-com boom See dot-com bubble. and bust. In Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern , for example, the percentage of companies offering bonuses fell from 73% in 2001 to just 37% in 2002.
In keeping with the growing allocation of venture investment dollars to healthcare-related companies, salaries for healthcare executives increased at every level. For instance, CEOs at venture-backed healthcare companies earned a median salary of $215,000, up from $200,000 last year.
The VentureOne compensation survey respondents are a representative sample of the venture industry. Information technology companies accounted for 50% of the sample, while 26% were in the healthcare sector, and 22% were products and services companies. Sixty percent of all companies were Internet-related. Companies based in Northern California comprised 26% of the respondents, companies in the Northeast accounted for 23%, Southern California-based companies represented 10%, and another 10% of companies surveyed were based in the South. Companies based in other parts of the country accounted for the remaining 31%.
VentureOne, the leader in venture capital research, offers investors and entrepreneurs the most comprehensive and accurate information on venture-backed companies, as well as world-class events, industry analysis, and customized research. Venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed
5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M  , corporate investors, investment banks The following is a list of investment banks Financial conglomerates
Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. , and accounting and law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:
VentureOne's wealth of global information about the venture capital industry is made available in VentureSource(TM), an Internet database including US, European, and Israeli startups and investors: over 21,000 company and 7,000 investor entities, tracked in over 50,900 transactions and including more than 131,900 key executives.
For more information about VentureOne products and services, please visit http://www.ventureone.com/.
The investment figures included in this release are based on proprietary research conducted by VentureOne in tracking thousands of privately held companies through in-depth interviews with company CEOs and CFOs and their investors.
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Contact: Tamar Zemel, Senior Communications Manager of VentureOne Corporation, +1-415-538-2658, or firstname.lastname@example.org