San Francisco, CA (PRWEB) December 19, 2007
The Biotech industry's Chief Executive Officer total direct compensation, consisting of base salary, annual cash bonus, and the present value of long-term incentive grants, grew 18% from the previous year to $2.2 million according to Presidio Pay Advisors' 2007 Biotech Executive Compensation Survey.
The surge in CEO total direct compensation is due an increase in the value of equity-based incentive grants as base salaries slipped 3% and annual cash bonuses remained steady from the prior year. Despite a 28% increase in annual cash bonuses for Chief Operating Officers, CEO pay widened to 1.8 times COO pay.
"The widening gap between the CEO and the next highest-paid executive is inconsistent with what other industries are paying and should be analyzed by Compensation Committees," said Brandon Cherry, a Principal at Presidio Pay Advisors. "In some cases this gap is acceptable. For example, in the first few years of a CEO's tenure, equity grants may be larger in order to satisfy company ownership requirements. However, it is necessary to understand why a large gap exists, and if a shareholder's investment in executive compensation is appropriately distributed across the senior management team," Cherry concludes.
Presidio Pay Advisors 2007 Biotech Executive Compensation Survey presents findings on executive pay and ownership levels in 93 public companies. The survey also found:
- Chief Financial Officer and Chief Legal Officer total direct compensation dropped 20% from the prior year.
- Chief Executive Officer ownership grew to 1.98% of total common shares outstanding.
- Chief Executive Officers that owned less than 5% of the company's total common shares outstanding earned nearly 80% more in base salary than their counterparts who owned more than 5% of the company total common shares outstanding.
About Presidio Pay Advisors, Inc.
Presidio Pay Advisors is a San Francisco-based compensation consulting firm that provides companies with independent, strategic advice and support on a wide range of compensation issues. The firm's collective expertise encompasses a diverse array of human resources, finance, accounting, regulatory, and shareholder perspectives. You can find the Biotech survey and other industry-specific compensation surveys on their website at http://www.presidiopay.com .
Presidio Pay Advisors 2007 Biotech Executive Compensation Survey complimentary synopsis is available to the media to download, or by contacting Brandon Cherry at 415-438-3402. The survey is available to the public to purchase for $850 at Presidio Pay's website.