Implications of Changes in Technology Companies are Work Culture Incentive Compensation

Recently, some compensation and benefits experts have been witnessing a renewed interest in good old-fashioned base pay as an important part of a pay mix that includes base, bonus and options. The trend is clear among executives in high-tech companies in general and high-tech start-ups in particular. The change in the compensation mix in the high-tech sector is so subtle that it has gone unnoticed by many. The implications of the change, however, are not so subtle. This article addresses the implications for entrepreneurs who invested in high-tech start-ups for quick profits from IPOs, technology stock shareholders, compensation professionals charged with developing pay plans that promote technology companies’ business objectives, and employees who hold stock options.