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Benefits July 19, 2006
Biotech CEOs See Only 2% Increase in Total Comp
July 19, 2006 (PLANSPONSOR.com) - CEO total direct
compensation - which includes base salary, annual cash
incentives and the present value of annual stock option
grants - grew only 2% over the prior year, according to the
Presidio Advisors Biotech Industry Executive Compensation
Survey.
Reported by Kip McDaniel
In a press release on the survey results, Presidio said CEOs of Biotech companies saw an 11% increase in total cash compensation. However, a median 8.5% decrease in stock prices led to lower stock option grant values.
Other findings of the survey, according to the release, include:
- Use of restricted stock nearly tripled from one year ago, with 35% of companies in the survey granting restricted stock to at least one executive.
- Restricted stock grants to Chief Executive Officers doubled to 27% of CEOs receiving the increasingly popular long-term incentive.
- For the top six highest paid executive positions, two-thirds of the total compensation package was “at-risk” pay linked to company and executive performance through annual bonuses and long-term incentives.
Presidio analyzed executive compensation and ownership levels in 67 companies in the Biotech industry for the survey.