What Internet Execs Make: AIP Releases Salary Survey

Jan 26 1999

The Association of Internet Professionals has completed its first salary survey for the Internet industry, and there was at least one surprise: Many senior executives aren't getting stock options.

"We don't know why," says Andrew Kraft, executive director of the AIP. "But it's a large enough sampling of top industry CEOs and others" to be reflect an industry trend, he says. Some 25 percent of the so-called "chief officers" surveyed said they lacked stock options, while up to 37 percent of software engineers said options are a standard part of their salary packages.

The AIP's membership includes 100 companies, ranging from pure-play Internet firms like Quote.com , CNET and America Online to traditional companies who are active Net players, such as IBM , Cable and Wireless and Playboy Enterprises . The "Compensation and Benefits Survey" was sent to 2,400 individuals who work at the member companies, and 374 responded. Their positions ranged from Web designer to programmer to creative director and chief executive officer.

"This [survey] helps define what an Internet professional is," says Kraft. "Companies will now have a better sense of what's out there."

Among the key findings were salary averages. Chief officers, whether they are the top executive or head up operations, technology or finance , make an average salary of $71,010 across the country. This figure is lower than the average for positions in the "technical executive" field, defined as directors or vice presidents of online, interactive or e-commerce type units. Employees in those jobs average $73,382 per year. Those working in software development bring in an average of $72,503.

Here's one clue to such findings: Of the chief officers surveyed, 51.7 percent came from companies of five or fewer employees. Only 10 percent worked at companies with more than 1,000 people on staff. Meanwhile, the technical executives, software and hardware professionals worked, in a majority of cases, at the largest companies.

Kraft says the organization will better be able to interpret the data once it has been distributed to analysts. Members are being offered the survey at $400; nonmembers may purchase copies for $500.

This marks the second major survey targeted specifically at the Internet industry. Last spring, the American Electronics Association produced a study of Web-related positions.