Pay Model Returns to Yesteryear for Dotcoms

Just when dotcoms seemed to break out of the mold and offer compensation models truly above and beyond the traditional bricks & mortar environment, high-tech companies have taken a step backwards.

Gone are the days of stock options. Since tech stocks have fallen somewhat out of favor since last Spring, dotcoms have returned to cash incentives rather than the promise of a soon-to-be IPO in the future.

This and other conclusions were made by a recent study commissioned through PricewaterhouseCoopers [1]. Based on 123 Internet company responces, base pay rose over the last year, but at the same time, cash bonuses rose 23 percent.

'These results evidence a continuing maturation process by Internet companies that has them acting and feeling more like traditional brick-and-mortar firms,' said Edward Speidel, director of the survey.