Exec, Employee Pay: The Numbers Are Numbing


CRN logo By Eric Hausman

9:04 AM EDT Thu. May. 18, 2000
From the May 18, 2000 issue of CRN
ou do this long enough and you start to get numb from the numbers.

Bill Gates' stockholdings in Microsoft are only worth $55 billion, nearly the same as rival Larry Ellison's. And Richard McGinn, last year's highest-paid executive, placed only third this year, with cash pay of $6.2 million. Even Lou Gerstner's $9.2 million cash pay isn't shocking anymore.

But take a minute to think about what's going on here, and take a good look at our lists of the Top 200 highest- paid executives and Top 200 richest executives. Then look at the options these executives are likely to realize, often in the tens of millions of dollars. Inevitably, the realization hits: That's a lot of money.

ERIC HAUSMAN: There's plenty of money to go around.
For the 13th consecutive year, CRN has surveyed the leading public companies, approximately 130 in all, and determined the best-paid and wealthiest executives. This year, many new names joined our list, including executives from Circle.com, CMGI, Ariba and Scient. Most of these companies were unheard of last year but now pay their executives as well, if not better, than many of the more traditional players.

But there's good news for those of us still at least a few rungs below the top on the corporate ladder.

Our survey of solution providers found that compensation levels for those who work in the trenches are also surging and, as you'll read on the following pages, compensation is up across the board. And even more interestingly, you'll learn that greater e-business revenue as a percentage of overall solution provider sales results in higher pay. That's both good news and bad news.

For those of you working in the business, the good news is if you can help provide e-business solutions, you're likely to get paid more for your efforts. Of course, the bad news is that business owners need to shell out more cash as the price for increased e-business sales. For more on the impact e-business has on compensation, see p. 52. Let's hope those increased costs will eventually lead to increased profits.

Our research also showed that certifications do matter when it comes to technical staff, and that two is better than one. For details on which certifications will earn you more money, and which combinations are best, turn to p. 56.

The information on the coming pages will provide you with an amazing amount of data to help you determine how your business' compensation plans compare with others in the industry. But the real fun begins online, where you'll be able to get all of this information as it is presented here, but in a more interactive environment. On our Web site, www.crn.com, you'll find two separate databases,one for executives and one for solution providers. Each will allow you to search for the information you want in the format you want it. Our executive online salary search will include 500 of the highest-paid executives, more than twice what is listed on these pages. If you work for a public company in this industry, chances are you'll be able find your boss' pay here.

There will be a link directly off our home page, or simply go to www.crn.com/salary for these databases.

And on Wednesday, be sure to tune in to our live Webcast, where Dr. John Roberts, CRN's director of editorial research, will present the survey findings and answer your questions. Then, throughout the week, you'll be able to post questions at www.crn.com/salarychat, and have them answered by compensation experts, or simply engage in a discussion on the issues with your fellow solution providers.CRN

 
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