April 24, 2000
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$alary Survey:
Think Long Term For Stock Options To Make A Difference
hile one in four IT professionals has been granted stock options, there's no evidence of any millionaires' clubs among respondents to InformationWeek's salary survey. The majority of those with options say the value is currently not worth a penny. Among those who are vested, the median value of all options held is $16,000 for IT staff and $35,000 for managers. IT managers working in jobs that involve ERP are doing the best, reporting median stock-option values of $70,000.Given the wild stock-market fluctuations over the past few weeks--particularly on the tech-heavy Nasdaq exchange--will IT job seekers continue to place a high value on stock options? Marianne Marino, a recruiter at RHI Consulting, hasn't seen any immediate impact. "It may not have really hit them yet," she says. But she adds that a volatile stock market isn't likely to scare off seasoned IT workers who see money-making potential in stock options, even if it requires more patience because of the bear market. "You have to stay in it for the long haul," she says. "Many people who work in technology are accustomed to [stock market volatility], so it really isn't a big deal."
Market shifts or not, IT workers who might strike it big at a dot-com via stock options are envied by many employees at more traditional companies. But some companies are getting creative. Barbara Cooper, group VP and CIO of IS at Toyota Motor Sales USA Inc., says the automaker is considering a mock stock program in which workers could earn more by investing in "stock" in internal projects in which they're involved. Options would be paid based on the success of the project. Cooper says the company is in early discussions about the concept, but managers and employees seem to think it's a good idea. "We can motivate [our staff] to commit to big, complex, or risky projects," says Cooper. "It will help evolve the culture to be less risk-averse."
When IT professionals receive cash bonuses, the main reason is personal performance, according to the survey. Company profit sharing ranked second as the most likely reason for a bonus, and project milestone completion also ranked high on the bonus scale. BBN Technologies senior systems engineer Keith Manning says his compensation includes incentives and bonuses tied to both his own performance and
the performance of his department, usually between 5% to 7% for projects successfully completed by the department.
Return to main story,"Money, Yes, But More."
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