Internet companies are paying executives much higher salaries than six months ago, as share options lose their appeal, a pan-European study shows.
The salaries of chief executives at post-IPO internet businesses are now only 10% lower than the equivalent pay at traditional bricks-and-mortar companies, according to the ePay survey. Many financial sector companies were included in the report, commissioned by the recruitment company Futurestep and SCA Consulting.
The changing pattern had been caused by the fall in internet share prices. Ken Brotherston, president of Futurestep, Europe, told eFinancialCareers: "People are no longer willing to rush into these dotcom ventures and take salary cuts in favour of substantial option plans."
In some cases salaries and bonuses at internet companies had increased by 50 per cent in the last six months, the survey found. In the past year, the average salary of chief executives of post-IPO internet businesses had risen from €185,000 to €266,000.
Traditional companies, on the other hand, were offering increased equity options to employees, said the survey, which was based on a poll of more than 2,000 senior executives and 237 companies in the UK and Europe.
Convergence between the two sectors isn't confined to pay, Brotherston added. He said that some internet companies had moved away from casual dress towards more formal attire, while many traditional firms had relaxed their dress codes.