Boston, November 6, 2008 - BOSTON, (Nov. 6, 2008) – With the past quarter experiencing unprecedented market ups and downs, technology companies are re-evaluating their performance metrics, targets, and overall spending. As a result, emerging compensation trends in this turbulent economy point to continued focus on “pay for performance” as well as enhanced discussion and scrutiny of executive compensation programs and processes. These issues and others – including findings from the most recent annual technology compensation study released today by leading executive search firm J. Robert Scott, international law firm WilmerHale, and professional services firm Ernst & Young LLP – will be discussed by a panel of experts at a November 7 webcast.
“It will be timely and compelling to discuss the results of our most recent survey and tie that data into current compensation changes and future projections,” said Aaron Lapat, managing director of J. Robert Scott. “This year, we’re seeing executive compensation increasingly shift toward a pay for performance model as companies explore both bonuses and option vesting based on performance objectives.”
The nationwide study is the most comprehensive survey of executive compensation among privately-held, emerging technology companies and the first to make this information readily available. Now in its ninth year, the annual report is used as an authoritative guide by venture capital firms and their portfolio companies in making critical decisions regarding attracting, rewarding, and retaining key talent.
The study results serve as a valuable tool in helping businesses and executives understand today’s compensation trends for senior executives at private technology companies in the following market segments: software, communications, hardware/semiconductors/ electronics, IT services/consulting/system integration, content/information providers and - for the first time - clean technology.
Study results are available to the public at www.compstudy.com and will be analyzed in detail during an interactive webcast on Friday, November 7 at 11 a.m. – 12:30 p.m. EST by executives from J. Robert Scott, Ernst & Young LLP, and WilmerHale. To register for the webcast, visit http://webcast.ey.com/thoughtcenter/default.aspx?pid=1344.
“Private technology companies need to constantly assess the job market and executive compensation practices to attract, motivate, and retain key executives who will help their businesses sustain growth,” explains Bryan Pearce, Northeast Strategic Growth Markets Leader for Ernst & Young LLP. “Turbulent economic times often provide a great environment to upgrade leadership talent.”

Key findings identified in this year’s survey include:
1. Stock options continue to be the most popular equity holding, with stock options offered as the sole equity vehicle by 58 percent of respondents; this is up from 47 percent in 2007. “After a spike in the use by private companies of restricted stock as a form of equity compensation, we saw a return in 2008 to stock options as the primary form of equity compensation for participating companies,” said Kim Wethly, a partner in the Tax Practice Group at WilmerHale.

2. Average base salaries rose by 4.7 percent across the executive positions surveyed from 2007 to 2008, and executives earned approximately two-thirds of their target bonus in 2007, nearly identical to the results from 2006.
3. On average, the CEO has a target bonus of $102,000 for 2008, representing 43 percent of base salary. This compares to an average bonus of $69,000 in 2007 on a bonus target of $98,000 -- an achievement of 71 percent. This is up 10 percent from the 61 percent achievement in 2006. This trend is unlikely to continue given the current economic state as companies were able to more successfully approach their full targets when the market performed well in 2007.
4. Average base salary for CEOs in the clean technology sector was $229,000 with a bonus target of 92,000. This average base salary is the lowest among all segments surveyed.

Methodology
Three hundred forty-two privately-held technology companies throughout the United States took part in the survey which includes data on more than 1,736 executives. The concentration of respondent companies are at the early to middle stages of development based on financing status, and 62 percent of respondents are from companies with less than $5 million in revenue. Nearly half the respondents represent software companies.
The study delved into the base compensation, bonus, and equity packages of ten key executive positions: Chief Executive Officer, President/Chief Operating Officer, Chief Financial Officer, Chief Technology Officer, Heads of Engineering, Sales, Marketing, Business Development, Human Resources and Professional Services. Data is analyzed in aggregate with detailed views by position looking at: industry vertical, geography, revenue, headcount, financing stage, and founder status.

J. Robert Scott
J. Robert Scott is a global, retainer-based executive search firm specializing in recruiting senior executives for companies in the technology, biomedical, biopharmaceutical, financial services, and higher education/not for profit fields. J. Robert Scott is headquartered in Boston, Massachusetts with offices in San Francisco, London, Hong Kong, and Singapore. Additional information about the firm can be found at www.j-robert-scott.com.

Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 135,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. For more information, please visit www.ey.com.

Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity.
This news release has been issued by Ernst & Young LLP, a member firm of Ernst & Young Global Limited.

Wilmer Cutler Pickering Hale and Dorr LLP
WilmerHale provides legal representation across a comprehensive range of practice areas that are critical to the success of its clients. The law firm’s leading intellectual property, litigation/controversy, regulatory and government affairs, securities, and transactional groups participate in some of the highest-profile legal and policy matters. With a staunch commitment to public service, the firm is renowned as a leader in pro bono representation. WilmerHale has more than 1,000 lawyers in 11 cities worldwide. For more information, please visit www.wilmerhale.com.