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

• For companies with one or fewer rounds raised the average equity stake is 1.76%, decreasing for each additional comparative financing stage in our report. • Non-founding CTOs earn, on average, $10,000 more in total cash compensation than their founder counterparts. • As expected, founding CTOs hold considerably more equity in their companies than non-founders, with an average of 8.91%.

Base Salary – 2007 and 2008 Bonus – 2007 and 2008 Equity Holdings

• Average base salary for the CTO increased by $8,000, or 5.0%, between 2007 and 2008.

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

Base, Bonus and Equity by Financing Rounds Base, Bonus and Equity by Founder Status

• 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 of hire grant falls within this spectrum at 1.19%. Average current equity for the CTO is 1.53%. • Base salary does not fluctuate greatly for the average CTO relative to increasing financing rounds.

CHIEF TECHNOLOGY OFFICER

B

2007

2008

Non-Founder ≤1

Base Salary by Financing Rounds

Base Salary – 2007 and 2008
$130 $130 25th percentile www.compstudy.com $150 Median Mean $160

KEY:

Founder

2-3

4+

Base Salary by Founder Status
$140 $150 $143 $150 $165 $170 $170 $173 $165 $166 $168 $173 $175

$162

$170

75th percentile $173

$170

$185

$190

$195

$190

$195

$192

$195

60% KEY: Equity Holdings 1.00% 1.20% 25th percentile 0.00% 2.53% 1.91% 1.00% 1.00% 37 13.00% 2.60% 1.50% Equity by Founder Status 0.00% Equity by Financing Rounds 0.64% 1.80% 2.00% 1.28% 8.00% Mean 1.00% 1.10% 1.76% 1.70% 0.2007 2008 KEY: Non-Founder Founder ≤1 2-3 4+ $5 Bonus by Financing Rounds $9 Bonus – 2007 and 2008 25th percentile $20 $20 $27 $24 Median Mean $30 $37 $37 $40 2008 Compensation & Entrepreneurship Report in Information Technology 75th percentile Actual Bonus Received Target Bonus $20 Bonus by Founder Status $22 $20 $25 $37 $38 $40 $42 $45 $50 $52 $54 $63 $57 $52 $57 $60 $69 $70 $63 $65 Time of Hire Current $63 Non-Founder ≤1 Founder 2-3 4+ 0.19% 75th percentile 1.53% 2.50% 6.00% Median 1.70% 1.30% .00% 1.

com Salary KEY: Software Cash Compensation by Business Segment MidAtlantic $222 $179 $43 $178 $33 Midwest $208 $173 $35 $163 $24 $139 $156 $189 $155 $34 West $74 Communications Hardware. Info Provider $211 41-75 $218 $174 $44 Bonus $268 $183 76+ $85 $203 $161 $205 $160 $45 $42 $230 South CleanTech .000 and will enjoy the largest equity stake in their companies with 1. • CTO equity holdings are greatest in California. there is a larger jump in total cash compensation.000.compstudy. those with greater than $20M in revenues. CHIEF TECHNOLOGY OFFICER B California $242 $71 $171 $242 $53 $189 1-20 $205 $155 $50 Cash Compensation by Headcount (FTEs) Cash Compensation by Geography New England $240 $185 $55 $288 $119 $169 21-40 $164 $48 $212 www. Electronics Services. earn considerably more cash compensation at the average than CTOs at smaller companies.64%. • CTOs at the most developed companies. • Software CTOs are expected to earn the largest total cash compensation in 2008 at $242. driven by a target bonus nearly double that of the next smaller company stage CTO. • CTOs in California earn the highest average base salary at $189. Integration Content. Semiconductors. Cash and Equity Compensation by Headcount Cash and Equity Compensation by Business Segment Cash and Equity Compensation by Revenue Cash and Equity Compensation by Geography • Total cash compensation for CTOs gradually increases with increasing headcount.38 • Average total cash compensation for the CTO varies widely across regions. Consulting. At the largest companies. at 2.18% followed by the West with 1.81%.

64% 1.10% 1. Electronics Services.69% Hardware.90% 1.95% $211 $168 $43 PreRevenue Up to $5M Equity by Revenue $5 – 10M 1. Semiconductors.59% Software Communications Equity by Business Segment MidAtlantic 1.82% $295 $110 $185 39 $20M+ Content.76% 0.13% 41-75 1.81% 2.90% 1-20 2008 Compensation & Entrepreneurship Report in Information Technology Equity by Headcount (FTEs) Equity by Geography 1. Consulting.78% $200 $51 $149 Cash Compensation by Revenue Up to $5M 1.57% 1.98% 76+ South 1.03% PreRevenue 1.74% $189 $38 $151 $5 – 10M $10 – 20M 0. Integration 1.45% 21-40 KEY: Average New England 0.18% 2. Info Provider CleanTech CHIEF TECHNOLOGY OFFICER .10% West 0.34% Midwest 1.93% $243 $185 $58 $10 – 20M $20M+ 0.California 1.

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