J. Robert Scott

Executive compensation held relatively steady in 2011 among privately-held life sciences companies, while their peers in the technology sector continued to see salary increases, according to the annual CompStudy survey produced by executive search firm J. Robert Scott and law firm WilmerHale in collaboration with Noam Wasserman, associate professor of business administration at Harvard Business School.

The survey analyzes year-to-year compensation changes across ten different executive positions in life sciences and technology. It includes compensation data from 575 technology firms and 225 life sciences companies from across the United States. While the technology sector continued to report moderate salary increases in 2011, momentum eased for the life sciences sector. “In life sciences, there was not a real slowdown through the economic downturn,” says Aaron Lapat, managing director with J. Robert Scott in Boston.

That may be changing. Lapat says executive compensation in the life sciences sector only increased by 1.45 percent over 2010. “There is something hitting the life sciences market that hit tech a few years ago,” Lapat says. Prior years saw annual changes in executive compensation for the life sciences sector of between 3 percent and 7 percent, he says. In 2011, non-founder CEOs in life sciences earned average base salaries of $304,000 according to the survey, up from $295,000 in 2010.

The technology sector, by contrast, seems to be finding its stride. The 2011 results showed a 3.7 percent increase compared with executive compensation in 2010 for the technology sector. “In tech, we’ve come off the bottom of the market,” Lapat says. “We’re seeing that reflected in compensation movement.” According to the survey, non-founder technology CEOs brought in average base salaries of $242,000 in 2011, up from $233,000 in 2010.

Based on the survey’s history, Lapat says the increases among executive salaries for the technology sector are not insignificant. In the twelve years the survey has been conducted, the previous greatest change in the technology sector was between 1999 and 2000 when the results showed a 7.9 percent increase. The lowest change was between 2008 and 2009. “It was virtually zero,” he says.

Lapat expects executive compensation increases to continue this year for the tech sector and, based on historical data, believes there will be some gains for life sciences. But, he adds, “I don’t think we’re going to see anything dramatic in 2012.”

Quashing some East Coast vs. West Coast rivalry chatter, Lapat says historic data from the survey showed that geography had little effect on how senior executives in technology were compensated. Headcount, number of funding rounds raised, and revenue had more influence on executive compensation, he says. “[Geography] does have statistical relevance but it almost has none,” he says. “When you look at all the data across the years, there is no consistency.”

[All information below includes data on founder and non-founder salaries]

Technology CEO mean base salaries by sector in 2011

Software: $204,800

Communications: $211,700

Hardware/Semiconductors: $197,900

IT Services/Consulting: $234,500

Digital Media/Content/Information: $203,200

Cleantech: $215,600

Life Sciences CEO mean base salaries by sector in 2011

Therapeutics: $296,200

Devices: $253,500

Tools/Instrumentation: $235,000

João-Pierre S. Ruth is a correspondent for Xconomy based in the New York City area. He can be reached at jpruth@xconomy.com and followed on Twitter @jpruth.

Visit the original article here:  Survey: Tech Executives Saw More Pay in 2011, Life Sciences Inched Up

“The markets are the most challenging I’ve seen in my 25 years of experience as an asset manager.”

So said the Chief Investment Officer at one of the UK’s 10 largest asset managers, speaking near the end of what had clearly been a long year.  A long and difficult year indeed for managing money – but not necessarily a bad year for being in the business of asset management.  As the Head of Fixed Income at a large Swiss asset manager said: “I’ve got more assets than I had at the start of the year, and I’m hiring.”

Events, dear boy, events…

To continue reading our review of the year in asset management, click here.

SALARIES UP AND BONUSES DOWN FOR C-SUITE EXECUTIVES

J. Robert Scott and WilmerHale release 12th annual Compensation

BOSTON, December 9, 2011 – According to an executive compensation study of private businesses released today, non-founder C-suite executives at technology companies saw their salaries increase by 3.7 percent year-over-year, while comparable executives at private life sciences firms experienced an average base salary increase of 1.6 percent, the lowest increase on the life sciences side in the study’s 12-year history.

In terms of target bonuses, non-founder CEOs at private technology companies surveyed experienced a decrease of four percent in 2011, targeting an average of $119,000, down from $124,000 in 2010. On average, nine out of 11 executive positions at private technology companies surveyed saw a 5.2 percent decrease in target bonuses. CEOs at private life sciences firms surveyed experienced an 11 percent increase in target bonuses, receiving an average at-plan goal of $304,000, up from $295,000 in 2010. Across all 14 executive positions surveyed at private life sciences firms, target bonuses decreased by 3.2 percent.

The 12th annual Compensation and Entrepreneurship Study, conducted by J. Robert Scott and WilmerHale in collaboration with Professor Noam Wasserman at Harvard Business School, also revealed that the average base salary for non-founder CEOs at 575 emerging, private technology firms surveyed was $242,000, compared to $233,000 in 2010. Among the 225 emerging, private life sciences firms surveyed, non-founder CEOs attained an average base salary of $304,000, up 3.1 percent from 2010.

“While the general economic environment has been sluggish over the past year, the healthy four percent average salary increase for C-suite executives at private technology companies indicates that competition for executive talent in this sector continues to heat up,” said Aaron Lapat, Managing Director, J. Robert Scott.

“While the market for top biotech talent remains highly competitive, an increasingly uncertain path to liquidity has forced most private companies to be even more judicious with their cash compensation in an effort to preserve capital,” said Erik Lundh, Managing Director, J. Robert Scott.

The study is the most comprehensive survey of executive compensation among privately-held, emerging technology and life sciences companies and the first to make this information readily available. The results are used as an authoritative guide by venture capital firms and their portfolio companies to make critical decisions regarding attracting, rewarding and retaining key talent.

“The findings of the study will be extremely helpful for boards as they prepare to award executive bonuses for 2011 and set compensation for 2012,” said Kimberley Wethly, Partner, WilmerHale.
Study results are available at www.compstudy.com and will be explained in detail during two separate life sciences- and technology-related webcasts on December 13, starting at 12 p.m. and 2 p.m., respectively. The webcasts, led by Managing Directors Aaron Lapat and Erik Lundh of J. Robert Scott, and WilmerHale Partners Michael Bain, Lia Der Marderosian and Kimberley Wethly, will discuss how life sciences and technology companies have reacted to the state of the economy and what the future might hold for these VC-backed companies. Click here to register for the webcasts.

Methodology

More than 800 privately-held, emerging technology and life sciences companies throughout the United States took part in the survey, which delved into the compensation, bonus and equity packages of top executive positions, including Chief Executive Officer, President/Chief Operating Officer and Chief Financial Officer. The data was analyzed in aggregate with detailed views by position looking at: industry vertical, product stage, revenue, headcount, geography, founder status and financing stage. Nearly 85 percent of the surveyed companies have fewer than 75 employees.

J. Robert Scott
J. Robert Scott is a boutique, global retainer-based executive search firm, specializing in recruiting senior level executives for a wide array of companies in the financial services, technology, life science/health care and higher education/not-for-profit fields. With headquarters in Boston, the firm has offices in Hong Kong, London, San Francisco, Shanghai and Singapore. Additional information about the firm can be found at www.j-robert-scott.com.

Wilmer Cutler Pickering Hale and Dorr LLP
WilmerHale provides legal representation across a comprehensive range of practice areas that are critical to the success of its clients. The law firm’s leading intellectual property, litigation/controversy, regulatory and government affairs, securities, and corporate and transactional groups participate in some of the highest-profile legal and policy matters. With a staunch commitment to public service, the firm is renowned as a leader in pro bono representation. WilmerHale is 1,000 lawyers strong with offices in 12 cities in the United States, Europe and Asia. For more information, please visit www.wilmerhale.com.

Tips to Close Hong Kong’s Growing Management Gap

Hong Kong is not a hub for the technology industry, despite Hong Kongers occupying major roles in the technology operations in Greater China. Today, a great many of the senior leadership teams across the finance, HR, IT, sales, marketing and general management functions at technology’s big multinationals (companies such as Microsoft, Cisco, IBM, Motorola, Symantec, Hewlett-Packard, Nokia, Oracle, and others) are held by Hong Kong executives living in China. I have witnessed the forming of a management gap across the technology industry here in Hong Kong, with the top positions being held by a steadily aging set of senior managers and very few rising talents to someday take their place.

Instead, Hong Kong’s next generation of technology managers are filling positions on mainland China. This group will be among those who will be considered for country or regional head positions in the future, making it even more likely that they will choose to stay in mainland China. Furthermore, since they have significant local knowledge and have established relationships there, China will continue to offer plenty of other opportunities for them to progress their career or to start their own businesses.

Click here to read the full article.

WilmerHale and J. Robert Scott present: 

Executive Compensation: Insights from the 2011 CompStudy Survey of Venture-Backed Companies

As venture-backed companies seek to control cash burn while still seizing strategic opportunities and upgrading talent, the need for a compensation plan that supports business objectives becomes critical. Decisions made today in regard to the mix of cash, equity and incentive compensation will have a long-term impact.

How are industry-specific dynamics within technology and life sciences affecting compensation trends? Are your compensation programs effectively structured to keep top talent in place and motivated in today’s economic environment? How do you compare to your peers?

Join us on December 13th as a distinguished panel of representatives from WilmerHale, international executive search firm J. Robert Scott, and Harvard Business School reviews the results of the global 2011 CompStudy survey and discusses the key takeaways for technology and life sciences companies in two separate webinars. Now in its 12th year, CompStudy is the most comprehensive survey of compensation for top management at private companies.

Greetings!

If you have not yet seen them, we would like to remind you that the 2011 CompStudy results are now available as part of our online, interactive reporting platform. As a participant in the survey, you have free, year-long access to these new reports, as well as historical data dating back to 2008. We had record participation in the survey this year, with over 800 companies in the US submitting data on well over 3500 executives.

New for 2011:

• This year’s survey is 10% shorter, and should take approximately 1 hour to complete.
• Print-to-PDF functionality that will allow you to print any report you generate through the site
• Instant access to the 2010 reporting data (including Board data by June 1st)
• Access to a Company Scorecard – a dashboard-style look at benchmarked compensation data across your executive team

To access this year’s data, log into www.compstudy.com with the same user credentials you established to take the survey. If you need your username or password reset, there is a link on the site’s homepage that will allow you to do so.

Thanks for your participation, and best of luck in 2012!

Best Regards,
The CompStudy Team

For more information on how the data provided is used, please visit us online at http://www.compstudy.com, where you can view previous editions of our report and more work from HBS Associate Professor Noam Wasserman.

Never before has demographic change happened so quickly. Global employers face the challenge that, despite a growing global population, they will soon have to recruit from a shrinking workforce, due to factors such as an aging population. Learn how innovative companies are responding to this change and redefining their employee value proposition.

To read a recap of this E&Y event or watch the panel discussion, which includes J. Robert Scott’s Aaron Lapat, click here.

Jonathan Zhu and Tom Mutch Will Advise and Place Senior Executives in Life Sciences and Financial Services Organizations Across the Region

HONG KONG, November 17, 2011 – J. Robert Scott, a leading global executive search firm, today announced the further expansion of its Asia Pacific operations with the appointment of consultants in its financial services and life sciences practices. The announcement reflects the Firm’s ongoing commitment to addressing the leadership needs of companies in key growth industries that are entering or expanding region-wide. Earlier this month, Jonathan Zhu came to the Shanghai office as Director, Life Sciences, and Tom Mutch joined as Director, Financial Services based in Hong Kong. Each brings deep experience that they will leverage while advising clients seeking to align their hiring priorities with their business strategies.

“Looking to 2012, we expect talent to remain one of the top issues for companies in Asia,” said David Hui, Managing Director and head of J. Robert Scott’s Asia Pacific region. “We have focused on building a regional team capable of providing strategic guidance to the C-suite and leveraging their personal networks in key market segments to place senior executives in mission critical roles. Both Jonathan and Tom have strong experience serving the unique challenges of clients in the life sciences and financial services industries respectively and I am happy to have them on board.”

Jonathan Zhu joins J. Robert Scott from Horton International China, where he was Head of the Beijing office.  In his new role, he will help drive the growth of J. Robert Scott’s Greater China Life Sciences business.

“We are delighted that Jonathan is joining our global life sciences practice at such an exciting juncture of our business, which continues to see particularly strong growth in Asia,” said Erik Lundh, Managing Director of J. Robert Scott’s global life sciences and healthcare practice. “Jonathan will play a key role in helping us to continue capitalizing on this opportunity. We are thrilled to have him on the team.”

Before entering the search industry, Jonathan held senior leadership positions with P&L responsibility at multinational corporations in both the U.S. and China, including: HORIBA, EOP Group and Environmental Elements Corp. (EEC). During this time, he also oversaw the Marketing and Government Affairs functions, which have become increasingly essential to any life sciences organization operating in China today. His background makes him a trusted advisor to leaders in companies across the full spectrum of life sciences sub-sectors (biotechnology, medical devices, pharmaceuticals, and healthcare services) in the Greater China Region.

A native of Beijing, Jonathan moved to the U.S. during high school and subsequently obtained a Bachelor’s in Civil Engineering from the University of Maryland and an MBA from the University of Baltimore. He is currently studying law and is expected to receive his LLM from the China University of Political Science and Law in 2012.

As a Director based in Hong Kong, Tom Mutch is responsible for helping to build the Firm’s Asia Pacific Financial Services Practice and leading high profile searches in capital markets, global markets and asset management specifically. Before joining J. Robert Scott, Tom was a Director at a boutique search firm in Hong Kong where he specialized in placing senior executives in fixed income roles.  His extensive search experience in the region has given him a deep understanding of the changing leadership priorities of long-established players and newcomers to Asia’s financial services arena alike, and makes him well suited to identifying and placing people who fit best within the parameters of any mandate.  Tom holds a B.Sc. and Masters degree from the University of Southampton, and a Ph.D. from the University of East Anglia, where he graduated in 2001.

“Over the last 12 months, our entire financial services team has been extremely busy servicing key regional accounts in this sector,” Hui explains. “This underscores the fact that financial services firms in Asia require the very best leaders and other senior level executives as the markets continue to grow both in size and complexity amidst ongoing volatility in Europe and the US. We are very excited to have Tom on board to help us meet those needs across the region and, in fact, the world.”

About J. Robert Scott

J. Robert Scott is a boutique, global executive search firm, specializing in recruiting senior level executives for a wide array of companies in the financial services, technology, clean-tech, life science/health care and higher education/not-for-profit fields. With headquarters in Boston, the Firm has offices in Hong Kong, London, New York, Shanghai, San Francisco and Singapore. For more information, visit www.j-robert-scott.com.

October 10, 2011

Each quarter the Life Sciences Practice at J. Robert Scott publishes a newsletter containing JRS developed content as well as a collection of the best articles and blogs we’ve read.

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