Go West, Tech Managers

CIOs earn higher salaries in Silicon Valley than along Boston's Route 128

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Edited by Marianne Kolbasuk McGee
Issue date: Feb. 10, 1997

Everyone wonders what other people make. That's especially true for technology managers, as they struggle to deliver bottom-line benefits in the highly competitive world of information systems.

The average compensation for CIOs at public companies with revenue of more than $100 million differs by at least 10% between the two IT "beds" in the United States-Bosto n's Route 128 and California's Silicon Valley-according to research by Christian & Timbers Inc., a national executive-placement firm in Cleveland.

"The cost of living has been considerably higher on the West Coast over the last 10 years or so, so you see the differentials showing up in salaries that executives, including CIOs, receive there," says Steve Mader, managing partner in the Boston office of Christian & Timbers. But CIOs both in Silicon Valley and along Route 128 probably earn more than the nationwide average.

The average annual salary for CIOs at companies along Route 128 this year will be about $244,069; CIOs at similarly sized companies in Silicon Valley will get about 10% more. The difference is even more marked in upper management. Presidents and CEOs in Silicon Valley will earn about 18% more than their Route 128 counterparts.

The average VP of marketing on either coast will earn about $100,000 more in base pay and stock options than the average CIO, according to Mader. "The salaries paid to executives represent supply and demand," he says. "Unless it's a company in an industry like financial services or consumer retail, in which IT is at the very heart of daily operations, a company's destiny often lies in marketing."

The category closest in salary to CIO is chief financial officer. CFOs will earn about $285,272 in the Boston area and $313,799 in Silicon Valley, according to Christian & Timbers. "The skills of a CIO or CFO are often seen to be more transferable-replacing the individual person holding that position is less consequential in many companies," Mader says. "That's why they often make less than the other executives."

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