IT Executive Gender Gap Reversal

An article featured on eWeek.com for January 24 reports some interesting findings on salaries in the IT field, particularly with relation to Information Technology executives.

The long-standing gender gap favoring male workers in the IT field, similar to across-the-board differences in the work force, continues. However, it seems that the pendulum is swinging in the other direction among executive-level IT professionals, according to a results of survey conducted by DICE.com, a well-known IT and engineering careers website.

While women IT workers on average earned 9.7% less than men in 2006, female IT executives including CEOs, CIOs, CTOs, vice presidents, and directors earned on average 1.4% more than their male counterparts, at an average salary of $109,912. In particular demand (based on the higher salaries reported) seem to be those with expert knowledge in ERP (enterprise resource planning), Sarbanes-Oxley compliance, and CRM (customer relationship management).

The highest salaries for IT professionals from entry level to executive (male or female) were reported in Silicon Valley, Boston, New York, and Baltimore/Washington, D.C., with San Diego, Los Angeles, and Seattle also showing strength.

Dwindling Perks and Benefits to Return?

The November 22 edition of the Herman Trend Alert indicates that a reversal of the recent trend toward elimination of benefits is underway.

With an increasingly competitive employment market developing that requires employers to vie for the best talent, some of those perks have already begun to return. Even unusual benefits such as concierge services and pet care programs have begun a resurgence.

With many executives ready to jump ship as reported by ExecuNet, the threat of rising attrition rates will drive employers to sweeten their compensation and benefits packages in order to retain key executives and avoid the exorbitant costs of replacement. This attrition threat is not to be taken lightly, as according to ExecuNet's recent survey of 147 employed executives, 67% are not satisfied with their jobs and of those 78% plan to change companies in the next 6 months.

Dave Opton, CEO and founder of ExecuNet phased it well: "“Companies have neglected retention for too long and now that the competition for talent is heating up, many are responding with too little, too late. When you consider the costs of recruiting, hiring, and training a new executive, it’s no surprise that the most successful companies never lose sight of the importance of rewarding their top talent with more than just compensation.”

Executive Salaries Moving Up

Just a quick news flash:

After an extended period of decreases and stagnation in executive compensation, salaries appear to be on the rise!

ExecuNet's Director of Recruiting Services Jeff Peduto recently reviewed September's job statistics, and observed that salaries have suddenly taken a major leap forward. He noted specifically that those jobs in the $100K-$150K range are up 53% from the same time last year, and those between $250K and $300K are up a whopping 54% from last year.

In addition, job posts overall are up 27%, with leading categories being Finance (+57%), Marketing (+39%), and Information Technology (66%). Other industries with major increases include Healthcare +55%, High Tech +49%, Financial Services +46% and Manufacturing +13%.

Regionally, New York fared best with a 46% increase, but the Southwest did well at 42%. The MidAtlantic posted a substantial 37% increase.

I don't know about you, but those stats made my day! If you've been hunkered down in a less-than-ideal employment situation for fear there was nothing else out there, maybe it's time for you to polish up that executive resume and test the market?

Holding the Salary Card Close to the Vest

Executives conducting an employment search frequently run into a situation like this. You see a posting for a position that sounds as if it may be right for you, and the advertisement asks for your salary requirements up front. Or you get that coveted first interview either via phone or in person, and the interviewer presses you for specific salary requirements. What do you do?

Career and compensation experts en masse advise against revealing your salary requirements too early in the game, despite veiled (or not so veiled) threats that candidates will be disqualified from consideration if they do not comply. (Surveys have shown that this is rarely if ever actually the case.) By divulging this information early in the game, you are virtually guaranteeing that the employer's view of you will be prejudiced and the hiring executive or committee will see you as either too expensive or not expensive enough.

The key issue here is: How do you want to be evaluated for this opportunity? Someone who is relying on your salary history is basing their evaluation on how someone else (another company) valued you. Does this make sense?

By withholding your salary history (diplomatically, of course) you are not being uncooperative. Rather you are shifting the focus to demonstrating your potential present and future value to the employer, rather than either defending what your last employer paid you or trying to explain why you were not paid more.

If executed properly, this tactic will earn the respect of the hiring executive and make it far more likely that you will ultimately receive an offer commensurate with your worth.

Downsizing the CEO

Business Week: The Boss On The Sidelines

"If anybody needed proof that the new balance of power in Corporate America has shifted, Maurice R. 'Hank' Greenberg provided it on Sunday, Mar. 13. While the imperious chairman and CEO of American International Group Inc. (AIG ) was holed up aboard his yacht on the Florida coast, his company's independent directors were packed into a conference room in their lawyer's Manhattan office.

The board members faced an urgent crisis: a growing accounting scandal that seemed to lead straight to the CEO. As directors debated whether to cut Greenberg loose, the 79-year-old titan lashed out at them by telephone. 'This board is being run by a bunch of lawyers who can't spell the word 'insurance,'' he shouted. 'If you get rid of me, you will destroy this company!'

It was the kind of intimidation that had helped Greenberg consolidate unprecedented power in his four decades at the helm of the insurer. But this time, the bullying didn't work. Within a day, Greenberg, once the most powerful man in the industry, was out as CEO. Two weeks later, as the scandal widened, he was forced to resign the chairmanship, too."

Laurie's Comment

I highly recommend a thoughtful read of the full article cited above for top executives (CEOs, CFOs, etc.). We have entered a new era where boards of directors, auditors, and lawyers have taken the reins in corporate America and show no signs of letting go. Facing legal and criminal liability for their failures, they are experiencing real and well-warranted fear of severe consequences and are no longer willing to remain on the sidelines.

Whether the new legalistic, formal relationships with CEOs that have replaced traditionally informal and cooperative ones are good or bad on balance remains to be seen. But this new business environment seems to be here to stay, so senior executives had better prepare themselves to deal with it for the long haul.