The Culpepper eBulletin
2005 Articles

December 2005

• On-Call Pay Premiums and Expenses
  The majority of companies provide additional compensation to technical employees when on-call. We report details for on-call pay premiums and mobile communication expenses.

• Cash Plays a Bigger Role in Board of Directors Compensation
  We examine trends in board of directors compensation over the past two years. In 2005, more companies offered annual retainer fees to board members and fewer offered annual stock option grants than in 2004.

• Retirement Plans and 401(k) Matching
  The most typical retirement plan continues to be 401(k) programs, with few companies choosing to use Safe Harbor and Roth 401(k) options. We also report on other retirement programs, including participation eligibility, administrative and contribution costs, and vesting schedules.

November 2005

• Incentive Eligibility and Targeted Amounts Rise with Base Salaries
  Short-term cash incentives often play an important and prominent role in compensation within the technology industry. We highlight incentive eligibility and amounts for U.S. non-sales employees, including notable changes from last year.

• Few Companies Pay Premiums for Technical Skills
  Less than 10 percent of technology companies provide pay premiums for technical skills. Those companies paying premiums typically set them between 5 and 10 percent of base salary.

• Costs and Coverage of Dental Benefits
  We report on dental plans offered to U.S. employees, including details on enrollment timing, monthly premiums, expense coverage, and reimbursement limits.

October 2005

• Differences in Sales Pay Incentives Around the Globe
  We examine targeted incentive levels for field sales reps and technical sales support employees, highlighting countries from the Americas, Asia-Pacific and Europe.

• Few Companies Pay More for Technical Certifications
  Consistent with data from prior years, only 13 percent of companies offer additional pay to employees holding technical certifications.

• Benefits for Part-time Employees
  We report data on the percent of technology companies offering benefits to part-time employees, eligibility requirements, and amounts offered, for 15 different types of benefits.

September 2005

• Global Base Salary Increase Projections for 2006
  Most of the projected base salary increases for 2006 range from three to six percent. Notable differences emerged for India and the Philippines.

• U.S. Pay Varies Widely by Location
  Our 2005 analysis of technology industry wages within the U.S. confirms that the Bay Area continues to have the highest wage levels, followed by New York/New Jersey and Boston.

• Expenses Covered by Health Plans
  We report on health care expenses covered by PPO, POS, and HMO health plans of technology companies. Does your company's plan measure up?

August 2005

• Restricted Stock Use Increases, Options Still More Prevalent
  More tech industry executives received restricted stock in 2004 than 2003. Even with this rise in the use of restricted stock, stock options remained more prevalent.

• Employee Benefits Costs up 9.1%
  Eighty-nine percent of technology companies reported increases in benefit costs per employee, citing health care expenses as the main source of the increase. We report on the cost of benefits in terms of a percent of payroll and as a monthly amount per employee.

July 2005

• Cash Compensation Rises for Most Top U.S. Tech Company Executives
  Executive cash compensation increased notably over the past year, in the most part due to an increase in the size of cash bonuses paid.

• Tech Industry Staffing Rises 9.2%
  For the second consecutive year, staffing in the largest tech companies increased, rising 9.2% over the last year.

• Health Plan Costs in the U.S. Tech Industry
  We report on premiums, deductibles, co-pays, and other aspects of health plan costs for the U.S. tech industry.

June 2005

• Premiums and Allowances for Expatriates
  Nearly all tech companies with expatriate employees offer them additional financial incentives. Allowances for relocation, housing and living expenses top the list.

• HSA Qualified Health Plans
  We report on company contributions to health savings accounts along with premium costs, deductibles, and other aspects of this new healthcare plan option.

May 2005

• Increases in Pay: High for Accountants, Low for Software Developers
  Changes in market pay rates for jobs in the tech industry vary widely by position. We present recent pay changes on four senior-level professional positions in the following functions: finance, human resources, product support, and product development.

• Group Life and AD&D Insurance Benefits in the Tech Industry
  Results from last month's survey show that most tech companies offer basic group life and AD&D insurance to employees. We also report on the benefit amounts, payout maximums, and other issues related to these plans.

April 2005

• Salaries Increase for 40% of Tech Jobs
  A new study from Culpepper analyzing salary trends in the U.S. high-tech industry over the last six months reveals that salaries for 40% of jobs are up and 58% are down.

• Employee Turnover Mixed; Headcount Growth Up
  We report on employee turnover and headcount growth for five departments in high-tech companies. Now is an important time to examine your compensation plan to make certain your employees receive fair and competitive pay.

• Disability Benefits in the Tech Industry
  Most tech companies pay the total premiums for long-term disability benefits, though fewer do so now than did two years ago. We also report on eligibility requirements, payout maximums, and other disability benefit issues.

March 2005

• Revenue Targets and Compensation for Sales Reps Vary by Tech Sector
  We report on quotas and total cash compensation as a percent of quota for direct field sales representatives in the software, services, and hardware technology sectors.

• The Effect of FAS 123(R) on Equity-Based Compensation
  Although many companies have yet to make final decisions, notable changes in equity-based compensation plans will be implemented by those with plans in place.

February 2005

• Budgets for Base Salary Increases Rise in 2005
  The 2005 budgets for base salary adjustments increased over levels set in 2004, with even fewer companies planning to freeze salaries this year.

• Recruiting and Hiring Plans for 2005: Budgets Increase 19%
  Results from a survey reveal a 19 percent increase in recruiting budgets. We report on the budgeted cost per hire for 2005 along with resources, tools, and hiring practices tech companies use to attract, recruit, and select the best talent.

January 2005

• Tailor Your Compensation Mix to Suit the Country
  An examination of the mix between base salary, incentives and short-term cash reveals notable differences by country. We provide compensation practices for six countries and compare them to U.S. practices.

• Staffing Plans for the New Year:
  This three-part series covers plans by U.S. technology companies with regards to hiring, H1-B and L-1 visas, and outsourcing/offshoring during 2005.

  • Double Digit Headcount Growth
    Double-digit headcount growth is in the plans for 2005, with U.S. Tech companies focusing on increasing U.S. headcount levels.

  • Plans for Using H1-B and L-1 Visas
    The use of non-immigrant visas remains close to levels seen in 2004. India continues to be a popular source for technical talent.

  • Outsourcing and Offshoring
    Outsourcing of business functions by U.S. software and IT services firms to companies within the U.S. is projected to decline slightly in 2005. However, offshoring is on the rise.

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