Yahoo! Finance - May 11, 2006
Private Companies Reign in Executive Compensation as Public Companies Argue with SEC Over New Disclosure Rules
LAFAYETTE, Calif., May 11 /PRNewswire/ -- Private companies are successfully hiring and retaining CEOs and other highly sought-after executives without raising the ire of their shareholders or investors.
Syzygy Consulting Group's private company clients are leveraging stock compensation, often offering significant performance-based stock grants, to secure a competitive advantage in the executive labor market. "There are valuable lessons that public companies could learn on how to best pay employees, ranging from the reasonableness of CEO pay, fairness of executive compensation and the most effective use of stock versus cash compensation," said David Broman, Syzygy's CEO.
Instead, companies like Intel are attacking the new SEC disclosure rules and IBM's Board of Directors ignored shareholder requests to change executive compensation. "When you have over 40 percent of your shareholders demanding more disclosure and more performance based pay -- like IBM did at their shareholder meeting last month -- it's time for Boards to wake up and smell the roses," added Broman. "Why fight performance-based pay? Why fight telling your shareholders everything they want to know about how you decide to pay your executives?" questioned Broman.
"Venture capitalist investment in or purchase of private enterprises is up more than one-third this year, and private companies are recruiting executive talent even in this highly competitive labor market," added Broman. To further understand how these companies attract and retain key talent, Syzygy is now seeking private technology companies to participate in its 2006 annual compensation survey. "It's a unique survey," said Broman, "and an excellent source to help privately held companies set a high and reasonable standard for executive compensation and to better link employee pay and benefits to the overall business strategy."
Conducted since 1999, Syzygy's seventh annual Pre-IPO and Private Company Total Compensation Survey is the only executive and employee compensation survey conducted in association with leading law firms, including Cooley Godward, DLA Piper Rudnick Gray Cary, Fenwick & West, GCA Law Partners, Gibson Dunn, Heller Ehrman, Manatt Phelps & Phillips, Morgan Lewis, Morrison & Foerster, Orrick Herrington & Sutcliffe, Pillsbury Winthrop Shaw Pittman and Simpson Thacher & Bartlett.
The survey reports upon nationwide cash compensation levels, stock/stock option grants, stock plan design and benefit programs, with specific total compensation data on Boards of Directors, the Chairman position, CEOs and other executives. It also reports on the total compensation provided to 9,000 employees in 38 benchmark jobs throughout five technology industries.
Private companies can visit http://www.syzygyconsulting.com/ipo.html or contact a Syzygy compensation consultant at 925-284-3669 to participate and request updated survey results.
About Syzygy Consulting Group
Syzygy Consulting Group, established experts in high-technology compensation practices, serves clients ranging from the largest multinational corporations to small private companies. Syzygy's customized consulting services help clients define and implement compensation programs to retain key talent, link compensation to performance and improve the effectiveness of overall compensation programs. Syzygy is a registered trademark of Syzygy Consulting Group.
Contact: Brandon Butler
925-284-3669
925-284-0858 Fax
info@syzgyconsulting.com
http://www.syzygyconsulting.com
