Think all those young executives at Internet start-ups have loads of cash on hand to spend freely? Think again. A recent study by PricewaterhouseCoopers found that Internet companies pay modest salaries but reward managers and directors with equity.
According to the study, titled "PricewaterhouseCoopers Compensation Survey of Dot.Com Executives," the average total direct compensation-including base salary, a cash bonus and incentives-for a CEO at a publicly traded Internet company is a relatively modest $1.74 million. However, those same CEOs have a 12.1 percent equity stake in their company, or a value of $468.5 million.
Melissa Campanelli is a technology writer in Brooklyn, New York, who has covered technology for Mobile Computing & Communications and Sales & Marketing Management magazines. You can reach her at email@example.com.
PricewaterhouseCoopers, (800) TECH-425, www.pwcglobal.com