Internet CFOs Get More Equity, Less Cash.Their salaries and bonuses may be modest in contrast to top-tier pay in traditional corporations, but CFOs of Internet-related enterprises are poised to build significant personal wealth through generous stock option programs, says a new executive compensation study by William M. Mercer mer·cer n. Chiefly British A dealer in textiles, especially silks. [Middle English, from Old French mercier, trader, from merz, merchandise, from Latin merx . The analysis, based on public information released between 1996 and 1999 by 32 publicly traded Internet-related companies (excluding hardware and software companies), finds the firms have a median 15.7 percent of their total common shares outstanding set aside for stock-based compensation, including options and restricted grants. This is [TABULAR tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. DATA OMITTED] considerably higher than the 10.7-percent median share reserve maintained by 350 large service and industrial companies analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. in a separate Mercer study. "For top executives, cash compensation is not the primary attraction of working at an Internet start-up. Compensation packages for executives of these firms are skewed skewed curve of a usually unimodal distribution with one tail drawn out more than the other and the median will lie above or below the mean. skewed Epidemiology adjective Referring to an asymmetrical distribution of a population or of data heavily toward equity," says Los Angeles-based Mercer compensation consultant Michael Reznik. "These managers and professionals take a risk by forgoing for·go also fore·go tr.v. for·went , for·gone , for·go·ing, for·goes To abstain from; relinquish: unwilling to forgo dessert. large salaries and bonuses in exchange for the potential to reap significant future rewards if the company is successful." |
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