| Top Google execs: $1 salary, no bonus, no options
Wall Street executives feeling harassed by taxpayers outraged at their pay might take note of how Google's ruling triumvirate fared in 2008: $1 in salary each, no bonus, no stock grants, and no stock options. Google has offered co-founders Larry Page and Sergey Brin and Chief Executive Eric Schmidt "market-competitive" salaries every year since 2005, but once again in 2008, the three turned it down, according to a company regulatory filing.
Source: CNET
Intel to Reprice Options, Freeze Top Salaries
Intel Corp. said 99% of its employees' stock options are worthless and it plans to allow employees to exchange them for new options with a lower exchange price, following moves by others, including Google Inc. and Starbucks Corp. The semiconductor giant also plans to freeze salaries for senior executives in 2009, according to a filing with the Securities & Exchange Commission. Intel would keep the cash portion of executive compensation flat, but the freeze does not affect noncash compensation such as stock-option grants.
Source: WSJ
SupportIndustry.com To Conduct Annual Service and Support Metrics Survey
SupportIndustry.com has announced it is conducting it’s the 2009 version of its annual Service and Support Metrics Survey. This important survey, sponsored by Parature, is designed to capture data on the crucial metrics essential to running your support operation. The results will help you benchmark your support operation against what other leading companies are doing today.
The executive summary of the survey will be made available for free to all who participate. As an additional incentive, two lucky participants will receive a $150 Amazon.com gift certificate (winners will be chosen at random). Responses are requested by April 10, 2009. To take part in the survey, click here...
IT Budget & Staffing Survey Shows Bleak Year Ahead for CIOs, IT Staffs
CIO's latest survey on IT budgets and staffing paints a bleak picture for the year ahead.
The number of CIOs planning budget decreases continues to rise dramatically, according to 208 IT executives surveyed in January, 2009. More than half of IT heads (53 percent) now plan to slash budgets in response to unfavorable economic conditions, up from 40 percent in a similar survey conducted in October and 17 percent in the first quarter of 2008.
Fifty-nine percent of CIOs are implementing IT hiring freezes, up from 46 percent in October and more than one third (34 percent) have begun reducing IT headcount, up from 23 percent 3 months ago.
More CIOs plan cuts to IT compensation costs; 35 percent of CIOs plan a decrease in the coming year, up sharply from the 18 percent reported in October.
Nearly a third of CIOs (31 percent) say they plan to reduce their full-time, in-house staff; an increase from 21 percent in October and 14 percent in the first quarter of 2008 while close to half (48 percent) plan to reduce spending for contractors and temporary workers, up from 26 percent 3 months ago.
More than two-thirds of CIOs (68 percent) say current economic conditions are causing purchasing decisions to undergo closer scrutiny by other business executives in their company.
With IT increasingly under the microscope, cost cutting is a priority for many CIOs. Almost half report that the percentage of their total IT budget allocated to new projects will decrease and 49 percent have already begun freezing or canceling IT capital spending.
CIOs most frequently cite travel restrictions, hiring freezes and holding off on discretionary IT projects as cost cutting measures they have already begun implementing.
The percentage of CIOs slashing their training budgets increased sharply to 46 percent, from 25 percent 3 months ago. With cost cutting top of mind, some CIOs are looking for alternative IT models; 38 percent of CIOs say they are more likely to consider on-demand services and SaaS as a result of the unfavorable economic condition.
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Enterprise Mobility is Increasing Despite the Economic Downturn
Aberdeen Group has released an industry benchmark report on enterprise mobility that reveals that the business demand for mobility has remained steady, despite the fact that the global economic downturn has caused businesses to reduce costs wherever possible.
The benchmark report shows that companies continue to maintain or increase their level of mobility support, with Best-in-Class companies increasing their mobility budgets year-over-year as a percentage of total IT spend by 27.4%, proving how important mobility has become to delivering greater productivity and workforce effectiveness.
This study reports how Best-in-Class companies -- those that are performing in the top 20% across multiple metrics -- have found additional efficiencies through consolidated central device management and security, judicious and selective outsourcing of some support functions, and driving compliance to IT standards for mobile devices, whether enterprise- or employee-procured.
So entrenched, in fact, that between 2006 and 2009, those companies with current mobility initiatives in place rose from 59% to 84%, while those with no plans decreased from 19% to just over 1%.
Mobility's importance is only increasing in importance as a younger demographic enters the workplace. It is also becoming the convergence point for new information and data distribution services, including Unified Communications, mobile Software-as-a-Service (mSaaS), and the truly mobile Internet.
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U.S. Employers Still Offering Generous Employee Severance Packages Despite Economic Conditions
With many economists predicting a bleak outlook for near-term economic recovery, the possibility of continued layoffs are a likely reality for thousands of Americans. While losing a job is not welcome news, a new survey by Hewitt Associates, a global human resources consulting and outsourcing company, found that severance packages for most impacted employees at large U.S. companies have remained unchanged. However, as companies continue to look for additional ways to lower costs, those benefits -- like many others -- are at risk of being cut back.
Hewitt's survey of 228 large U.S. companies representing 4.5 million employees found that more than 80 percent of employers made layoffs in the past 24 months, and 45 percent intend to make further reductions in the next 12 months. The good news for those impacted employees is that severance programs have remained virtually unaffected by the economic downturn. More than half (51 percent) of companies offer a standard one-to-two weeks of pay for every year of service, and another third (33 percent) vary their payouts based on a formula that typically combines years of service, salary level, and/or grade.
In addition to cash payments, most companies provide at least one benefit after separation, which may include health care coverage, retirement benefits, disability, financial assistance or life insurance. Not surprisingly, health care coverage is the most prevalent benefit offered. Thirty percent of companies provide full health care coverage during the severance period and then offer COBRA at the end of the severance period. More than one quarter (26 percent) provide COBRA coverage immediately, with the employee paying the full premium. Most companies (72 percent) also provide outplacement assistance to severed employees.
But as companies look to make additional cost reductions in response to ongoing economic conditions, many say they will take a closer look at their severance packages. According to Hewitt's survey, one in five companies (20 percent) plan to make changes to their severance plans and nearly a third (31 percent) are unsure. Of those making changes, 43 percent plan to reduce cash payments, and one in five (21 percent) plan to reduce benefits.
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