BOSTON, Nov. 27 /PRNewswire/ -- J. Robert Scott, a leading retainer-based executive search firm; Ernst & Young, a global leader in professional services; and the internationally recognized law firm of WilmerHale; in collaboration with professors from Harvard Business School, have released data for their 2007 Compensation & Entrepreneurship Report in Life Sciences, available at http://www.compstudy.com. This study is a valuable tool in helping businesses and executives understand today's ever-changing compensation trends for senior executives within privately-held therapeutic, diagnostic, medical device, instrumentation and platform companies.
"Being aware of changing compensation trends allows businesses to
understand the executive talent pool and to better align their compensation
strategies and programs with current market conditions," commented J.
Robert Scott Managing Director Bruce Rychlik. "The compensation study
includes significant data on cash compensation, equity holdings, base
salaries and bonuses. In the past, reliable equity and cash compensation
figures have only been available for public biotechnology companies.
Compstudy.com provides much-needed statistics on the changing dynamics for
senior executives within private, venture-backed life science companies."
Five key findings were identified in this year's survey:
-- Salary and Bonus: Total target cash for the CEO rose 2% year over year,
most notably in base salary, an increase of $11,000. Average base
salary rose by 5.9% across the executive positions surveyed from 2006
to 2007. Average target bonus remained largely unchanged year over
-- Equity Holdings: Option grants continue to dominate as vehicles used
for the executive team. Incentive stock options account for just over
half of the equity grants to the management team in 2007, down from 62%
from our 2006 report.
-- Recruiting and Retention: As companies evolve from the early stage,
with one or fewer rounds of funding, to becoming more mature companies
with four or more rounds of funding, the number of Founders remaining
in the CEO position declines dramatically from over one-half to under
-- Severance Packages: 72% of non-founding CEOs have some form of a
severance package. Of those with severance packages, the average
severance period is 12 months.
-- Board Compensation: On average, board members are granted 0.45% of
fully diluted equity to join the board. Very few outside board members
of private companies receive cash compensation.
The proprietary study of executive equity and cash compensation provides authoritative compensation data for 13 top management positions, examining the evolution of executive pay as companies advance from start-ups to fully developed private enterprises. The study's results provide essential
information for businesses and investors to stay abreast of current trends in senior executive compensation and trends in organizational structures.
One hundred sixty-six privately-held life sciences and medical device companies throughout the United States took part in the survey which delved into the compensation and bonus equity packages of 13 key executive positions, including Chief Executive Officer, President/Chief Operating Officer, Chief Financial Officer, Chief Scientific Officer/Head of Research & Development, Chief Business Officer/Head of Business Development, Heads of Clinical Research, Regulatory Affairs, Manufacturing, Sales, Marketing, Engineering, Human Resources, and Chief Technology Officer. Data is analyzed in aggregate with detailed views by position looking at: product stage, headcount, geography, business segment, and number of financing rounds raised.
J. Robert Scott
J. Robert Scott is a retainer-based executive search firm and a portfolio company of Devonshire Investors, which is wholly owned by Fidelity Investments. The firm specializes in recruiting senior level executives for a wide array of international companies in the life sciences, technology, financial services, and higher education/not for profit fields. J. Robert Scott is headquartered in Boston, Massachusetts with international offices in Hong Kong and Singapore. Additional information about the firm can be found at http://www.j-robert-scott.com.
Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 130,000 people are united by our shared values and an unwavering commitment to quality. For more information, please visit http://www.ey.com.
Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
This news release has been issued by EYGM Limited, a member of the global Ernst & Young organization that also does not provide any services to clients.
Wilmer Cutler Pickering Hale and Dorr LLP
WilmerHale is recognized globally for its premier practices in antitrust and competition; aviation; bankruptcy; civil and criminal trial and appellate litigation (including white collar defense); communications; corporate (including public offerings, public company counseling, start-up companies, venture capital, mergers and acquisitions, and licensing); defense and national security; financial institutions; intellectual property counseling and litigation; international arbitration; life sciences; securities regulation, enforcement and litigation; tax; and trade. With a longstanding commitment to public service, WilmerHale is renowned as a leader in pro bono representation. The firm has more than 1,100 lawyers, and offices worldwide in Baltimore, Beijing, Berlin, Boston, Brussels, London, Los Angeles, New York, Oxford, Palo Alto, Waltham and Washington. For more information, please visit our website at http://www.wilmerhale.com.
|SOURCE J. Robert Scott|
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