US firms 'have confidence' in chief executives

Figures obtained as part of a study conducted by J. Robert Scott and Ernst & Young suggest US technology and life sciences companies are confident in the abilities of their chief executive officers to lead them through the recession.

According to the survey, which was carried out in collaboration with Professor Noam Wasserman at Harvard Business School, CEOs at both technology and life sciences firms received a lower proportion of their target bonuses in 2008 than in 2007.

Specifically, CEOs at technology firms earned an average of 64 per cent of their target bonus in 2008, which was down six per cent on levels seen in 2008.

Meanwhile, life sciences CEOs received 44 per cent of their target bonus in 2008, down from 73 per cent in 2007.

However, J. Robert Scott managing director Aaron Lapat believes the headline figures do not tell the true story.

"Even though CEO bonuses across both sectors were lower than the prior year, the fact that these executives still received bonus payouts may speak to the confidence these companies have in their leadership and future growth," he commented.

Research published by the Financial Times earlier this week showed board members of oil and gas companies are likely to enjoy some of the biggest bonuses awarded to executives in Europe and the US.