36 CHIEF www.compstudy.

com

B
25th 75th
percentile Median percentile
TECHNOLOGY KEY:
OFFICER Mean

Base Salary – 2007 and 2008 Base Salary – 2007 and 2008
• Average base salary for the CTO increased by $8,000, or $130 $160 $185
5.0%, between 2007 and 2008.

2007
Bonus – 2007 and 2008
• Target bonus increased for CTOs, from an average of $52,000
$162
in 2007 to $57,000 in 2008. Actual bonus paid out in 2007
$150 $173 $195
averaged of $30,000, a 57% rate of attainment.

Equity Holdings 2008

• Time of hire grants for the CTO range from 0.20% at the 25th
percentile to 1.70% at the 75th percentile. The average time $170
of hire grant falls within this spectrum at 1.19%. Average
current equity for the CTO is 1.53%.

Base, Bonus and Equity by Financing Rounds

• Base salary does not fluctuate greatly for the average CTO
relative to increasing financing rounds.
Base Salary by Financing Rounds
$130 $170 $190

≤1
• Compared to early stage companies, average target bonus
sharply increases for those CTOs in companies that have
raised two or three rounds of financing. $166

• For companies with one or fewer rounds raised the average $143 $165 $195
equity stake is 1.76%, decreasing for each additional compar-
2-3
ative financing stage in our report.
$168

Base, Bonus and Equity by Founder Status $150 $175 $192

• Non-founding CTOs earn, on average, $10,000 more in total 4+

cash compensation than their founder counterparts.
$173
• As expected, founding CTOs hold considerably more equity in
their companies than non-founders, with an average of 8.91%.

Base Salary by Founder Status

$150 $173 $195

Non-Founder

$170
$140 $170 $190

Founder

$165
 2008 Compensation & Entrepreneurship Report in Information Technology
37
25th 75th 25th 75th
percentile Median percentile percentile Median percentile
Actual Bonus Received
KEY: Target Bonus KEY:
Mean Mean

Bonus – 2007 and 2008 Equity Holdings

$24 $40 $52 $65 0.20% 1.00% 1.70%

2007 Time of Hire

$5 $20 $30 $50 1.19%

$20 $37 $63 0.60% 1.00% 2.00%

2008 Current

$57 1.53%

Bonus by Financing Rounds Equity by Financing Rounds

$9 $27 $37 0.00% 1.00% 1.80%

≤1 ≤1
$38 1.76%
$25 $45 $70 0.50% 1.00% 2.00%

2-3 2-3
$69 1.64%
$20 $42 $63 1.00% 1.10% 1.70%

4+ 4+
$54 1.28%

Bonus by Founder Status Equity by Founder Status

$20 $37 $63 0.60% 1.00% 2.00%

Non-Founder Non-Founder

$57 1.53%
$22 $40 $60 2.50% 6.00% 13.30%

Founder Founder

$52 8.91%
38 CHIEF www.compstudy.com

TECHNOLOGY
OFFICER
B KEY: Salary Bonus

Cash and Equity Compensation by Headcount Cash Compensation by Headcount (FTEs)

• Total cash compensation for CTOs gradually increases with $268
increasing headcount. At the largest companies, there is a
$212 $218 $85
larger jump in total cash compensation, driven by a target $205
$48 $44
bonus nearly double that of the next smaller company stage $50
CTO.

Cash and Equity Compensation by Geography $155 $164 $174 $183

• CTOs in California earn the highest average base salary at

$189,000.

• Average total cash compensation for the CTO varies widely 1-20 21-40 41-75 76+

across regions.

• CTO equity holdings are greatest in California, at 2.18% fol-

lowed by the West with 1.64%.

Cash and Equity Compensation by Business Cash Compensation by Geography

Segment $288
• Software CTOs are expected to earn the largest total cash
$242
compensation in 2008 at $242,000 and will enjoy the largest $119
$230
$53 $211 $203
equity stake in their companies with 1.81%. $74
$33 $42
$163
Cash and Equity Compensation by Revenue $24

• CTOs at the most developed companies, those with greater $189 $169 $178 $156 $161
than $20M in revenues, earn considerably more cash com- $139

pensation at the average than CTOs at smaller companies.

California New Mid- Midwest West South

England Atlantic

Cash Compensation by Business Segment

$242 $240
$222
$55 $208 $205
$71 $43 $189
$35 $45
$34

$171 $185 $179 $173

$155 $160

Software Communications Hardware, Services, Content, CleanTech

Semiconductors, Consulting, Info
Electronics Integration Provider
 2008 Compensation & Entrepreneurship Report in Information Technology
39
Average
KEY:

Equity by Headcount (FTEs) Cash Compensation by Revenue

2.90% $295

$243
$110
$211 $58
$200
$189
$43
$51 $38
1.45%
1.13%
0.98%
$168 $185 $185
$149 $151

1-20 21-40 41-75 76+ Pre- Up to $5M $5 – 10M $10 – 20M $20M+
Revenue

Equity by Geography Equity by Revenue

2.18% 1.95%
1.78% 1.74%

1.59% 1.57% 1.64%

1.10% 0.93%
0.82%
0.69%

California New Mid- Midwest West South Pre- Up to $5M $5 – 10M $10 – 20M $20M+
England Atlantic Revenue

Equity by Business Segment

1.81%
1.76%

0.90%
1.34%

1.10% 1.03%
CHIEF
TECHNOLOGY
Software Communications Hardware,
Semiconductors,
Electronics
Services,
Consulting,
Integration
Content,
Info
Provider
CleanTech OFFICER