Even after a 55% rise in salary, tech CEOs earn a third less than peers.
The mean salaries of AIM-listed tech company CEOs and CFOs has increased, though both still remain below their peers in other sectors.
Grant Thornton’s analysis, based on 2012/13 public accounts of technology firms on the LSE’s Main and AIM markets, found that AIM tech CEOs recieved 55% more in remuneration than with the previous year, up to £593,000.
This is in stark contrast, however, to the mean salaries across the entire AIM market, with tech CEOs earning a third less on average than their peers.
The contrast does not end at the CEO level. CFOs were found to earn £292,000 versus the £540,000 full market mean. Although this indicates a 52% year-on-year rise in CFO pay, it is still 60% below what other AIM listed CFOs recieved.
Amanda Flint, Partner and Head of Executive Remuneration at Grant Thornton UK LLP, commented: "It’s encouraging to see that salary levels for tech executives are headed in the right direction towards catching up with peers in other sectors, although there will still be a concern over the current disparity. Despite some volatility in the tech sector’s performance over the past year, share prices have continued to climb and outperform the averages on both the AIM and Main Market, which suggests investors still have considerable faith in their future prospects.
"The UK’s technology sector is at the forefront of innovation and development of new ideas and technologies, and is well positioned to flourish at a global level and drive further growth throughout the economy. In order for it to attract the right talent and skills it needs to fulfil this potential, there’s a need to ensure that the reward proposition is attractive and executives are adequately compensated for the value they’re delivering to shareholders."