Tough 2009, better 2010

Syzygy Consulting Group is saying private companies intend to pay higher bonuses and create more jobs in 2010.

However, the company’s survey of 2009 pay and compensation shows that median CEO total cash compensation at private companies fell 11% in 2009, and CFO total cash compensation fell 19%.

Syzygy Consulting compiled pay practice data on 45,700 employees at 341 private companies.

“In my discussions with CEO participants there is much optimism for growth in jobs and pay in 2010,” David Broman, CEO of Lafeyette, Calif.-based Syzygy said in a statement. “This follows a year when almost everyone – including CEOs – went without pay increases and had bonus pay cancelled altogether. But in 2010 the mantra is grow. Private companies are budgeting for higher bonuses in 2010, some returning to highs last seen in 2007.”

OTHER FINDINGS
• Average base salaries decreased by 6% year-over-year.

• Median bonus for a director of engineering fell from $12,683 to $4,311, a decrease of 66%, and the median bonus for a senior development engineer fell from $12,020 to $4,178, a decrease of 65% from 2008.

• Aggregate employee ownership decreased 1%, falling to 15% of outstanding common share equivalents.

• CEO stock option holding also declined by 9% in 2009. Most of the decrease in executive ownership is the result of dilution from new investments and lower compensatory grants to tenured CEOs and CFOs.

• A CEO-founder generally receives 27% less cash compensation than a non-founder CEO.

• There was a median increase of 8% in the amount employees contribute to cover health care premiums.