Technology Industry Switches to Cash From Stock Awards

 

"After years of enticing employees with large stock awards and surging share prices, some technology companies are deploying a time-tested tool: cash.

Alphabet Inc., which owns Google, adopted a new cash bonus plan in October that lets the company give employees bonuses of nearly any size for nearly any reason. Amazon.com Inc. said this month it doubled its cash-pay cap for employees. Some cryptocurrency and nonfungible-token startups are offering pay packages with larger cash components than long-established tech companies in the hunt for workers, according to some tech recruiters.

Employers' recent changes to compensation have been fueled by a desire to blunt attrition amid labor-market upheaval caused by employees re-evaluating their careers after two years spent working from home, recruiters and compensation consultants said. Inflation and the stock market's volatility have also led staff to re-evaluate their appetite for risk and preference for cash.

Tech companies have long competed to siphon engineering and software programming talent from universities and smaller companies. These companies are increasingly attempting to hire away one another's top employees. For example, Meta Platforms Inc., the parent of Facebook, has increased efforts to hire experienced staff in alternate-reality tech, adding pressure on rivals to increase pay.

Engineers are frequently telling their bosses that they are exploring their options or have received an offer to work elsewhere, said Sherveen Mashayekhi, chief executive officer of Free Agency, a firm that advises tech employees on career transitions.

"Bosses who usually leave this to HR or recruiters are panicked, saying, 'A lot of my team is in a job search,'" Mr. Mashayekhi said.

As cash compensation looms larger, some companies are increasing the size of merit-raise pools to 4% of payroll from a typical level of 3%, said Robin Ferracone, founder of compensation consulting firm Farient Advisors.

A 2017 tax-law change could also lead companies to broaden their bonus plans, dropping performance criteria that no longer bring the tax breaks they used to, said Steven Hall, managing director of compensation consulting firm Steven Hall & Partners.

Typically, tech companies pay junior to midlevel engineers equity that ranges in value from 30% to 100% of their salary, according to tech recruiters. Managers and senior-level staff can receive annual stock awards valued from two to six times their salary.

Some senior engineers are seeing compensation offers that are roughly a third higher than pre-pandemic levels -- for example, a cash salary of $250,000 with a $50,000 signing bonus and an additional $100,000 in restricted stock, recruiters said. Some companies are also halving the number of years required to be considered a senior engineer to roughly four or five years, giving younger workers a chance to increase earnings, they added.

For more than a decade, Google has paid junior engineers performance-based cash bonuses of 15% to 20% of their salary, while senior engineers were eligible for more than 25% of their salary, former employees said.

Alphabet's new cash bonus plan, effective Oct. 19, can be used to reward any employee who isn't eligible for sales bonuses, according to a securities filing. The plan lets the company calculate bonuses with different formulas.

Two earlier plans at Google, dating to 2006 and 2007, capped bonuses for individuals in at least some years at $3 million and $6 million, respectively, and gave the company discretion only to lower or eliminate awards. The same plans, which were designated as bonus plans for executives or senior executives, also included company performance targets such as revenue, operating profit and total shareholder return.

Top executives at Google, including Alphabet Chief Executive Sundar Pichai, haven't received cash bonuses or incentive pay in recent years, the company's annual proxy statements show. The company last year reported paying Mr. Pichai $2 million in salary and $5.4 million in security benefits. In 2020, it paid him $277 million in equity and $65,000 in salary.

An Alphabet spokeswoman declined to comment on the change to its bonus plan but said the company pays salaries at the top of the market wherever it operates.

The flexibility Google sought for cash bonuses could speak to the changes being wrought by cryptocurrency startups, Mr. Mashayekhi said. Crypto companies have sought to lure several of his clients away from major tech companies by offering a third more in cash compensation. Other recruiters said venture-backed startups also have sweetened offers with richer cash payouts than established players.

Amazon said in an internal blog post this month that it would raise its cap on base pay -- which most commonly consists of salary, paid in cash -- to $350,000 from $160,000. It also said it would raise compensation ranges for most jobs, citing a "need to remain competitive for attracting and retaining top talent."

Amazon, which declined to comment on the move, relies on stock-based compensation to recruit and retain white-collar and management employees. The cap also means some new hires had to weigh a cut in salary to join the company and assess the prospects of gains in Amazon shares." [1]

1.  Technology Industry Switches to Cash From Stock Awards
Francis, Theo; Mickle, Tripp. Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 28 Feb 2022: B.1.

Generalinio informacijos direktoriaus (CIO) vaidmuo darosi įvairesnis, kai įmonės intensyviai naudojasi naujomis technologijomis

  „Vyriausi informacijos pareigūnai teigia, kad jų vaidmuo keičiasi, nes debesų kompiuterija ir kitos naujovės leidžia verslo lyderiams lengviau diegti technologijas, kurių IT skyrius nekontroliuoja.

 

    „Iš visų mūsų atliekamų vaidmenų CIO vaidmuo šiuo metu keičiasi labiausiai“, – sakė verslo konsultanto „Gartner Inc.“ tyrimų vadovas Chrisas Howardas. Nors įmonių technologijų įtaka verslo išlikimui paspartėjo, kyla klausimas. kas už tai atsakingas, pasakė ponas Hovardas. „Kartais tai yra CIO, kartais ne“, – sakė jis.

 

    Reaguodama į tai, daugelis CIO palieka programinės įrangos ir kitų įmonės technologijų sprendimus finansų, rinkodaros, pardavimo ir kitiems skyriams ir kreipia dėmesį į pagrindines verslo strategijas.

 

    Žingsnis leisti verslo padaliniams valdyti savo IT parduotuvę – tokioms permainoms technologijų lyderiai priešinosi ilgus metus, remdamiesi integracijos ir saugumo problemomis – ateina, kai debesų kompiuterija, duomenų analizė, automatizavimas ir kitos galimybės tapo svarbiausiomis įmonių funkcijomis, sakė Kimas Bozzella. vadybos konsultacijų įmonės „Protiviti Inc.“ generalinis direktorius ir pasaulinės technologijų konsultavimo praktikos vadovas.

 

    Nors dauguma CIO ir toliau prižiūri duomenų valdymą, atitiktį ir kitas aukštesnio lygio IT funkcijas, kai kalbama apie kasdienes verslo programas, jie dažniau bus vertinami kaip patarėjai.

 

    Praėjusiais metais rinkos tyrimų bendrovės „International Data Group“ apklausoje, kurioje dalyvavo 985 IT lyderiai ir 250 verslo sričių darbuotojų, beveik 60 % darbuotojų, nepriklausančių IT, savo įmonės CIO apibūdino kaip „strateginį patarėją, kuris aktyviai nustato verslo galimybes ir padeda. rekomendacijos“. IDG teigė, kad 86% teigė, kad grupės ar funkcijos, nepriklausančios IT, turi savo technologijų biudžetus.

 

    „Stengimasis pertvarkyti pabrėžė, kad įmones, kurios technologijas perkelia į savo IT skyrius, greitai aplenks konkurentai“, – sakė „Ernst & Young LLP“ pasaulinis inovacijų vadovas Jeffas Wongas.

 

    Irvingas Tyleris, žymus „Gartner“ tyrimų viceprezidentas, sakė, kad skaitmeninių technologijų plitimas reiškia, kad CIO nebegali būti kiekvienos įmonės sistemos savininkais ir operatoriais.

 

    Johnas Hillas, „Carhartt Inc.“ vyriausiasis skaitmeninės ir informacijos pareigūnas, sakė, kad daugelis jo pareigų, susijusių su įmonės technologijomis, visoje įmonėje išsisklaido. Dabar jis sutelkia dėmesį į tai, kad sistemos būtų integruotos, saugios ir suderintos su ilgalaike įmonės strategija, sakė jis: „Manau, kad vaidmuo pasikeitė“.

 

    Neseniai JAV drabužių gamintoja pradėjo iniciatyvą kiekviename skyriuje, pradedant nuo didmeninės prekybos, tiesioginio vartotojų aptarnavimo ir klientų aptarnavimo padalinių, kurti specialias technologijų komandas. H. Hillas sakė, kad komandos, kurias jis vadina „būriais“, susideda iš technologijų ir verslo ekspertų. Nors jam prižiūrimas, jis sakė, kad „pirmybė tam, kas daroma, yra komandoje“.

 

    Daugelyje įmonių verslo segmentai nelaukia, kol IT pritrauks technologijų talentus. „Gartner“ duomenimis, vidutiniškai 41% visos šiandieninės pasaulinės įmonių darbo jėgos sudaro vadinamieji „verslo technologai“ – darbuotojai, pasamdyti ne IT padaliniuose, kad sukurtų technines priemones ir kitas skaitmenines galimybes. „Gartner“ teigė, kad vidutinis šių darbuotojų procentas organizacijose skiriasi priklausomai nuo pramonės šakos: nuo 28% viešajame sektoriuje iki 55% energetikos sektoriuje.

 

    Daugelis technologijų tiekėjų pradėjo teikti debesies pagrindu veikiančius ir mažo kodo programinės įrangos įrankius, sukurtus taip, kad būtų paruošti arba lengvai pritaikomi, tiesiogiai verslo segmentams, aplenkdami tradicinius IT vartų prižiūrėtojus. Pandemijos metu ši tendencija paspartėjo, teigia analitikai.

 

    Sveikatos draudimo paslaugų teikėjo „Humana Inc.“ CIO Samas Deshpande'as teigė, kad kiekviename įmonės verslo segmente specialių technologijų komandų turėjimas IT lyderiams suteikia unikalią poziciją peržiūrėti visą įmonės technologijų ekosistemą. Pasak jo, kiekvieno segmento unikalus sprendimas investuoti į technologijas yra integruotas į platesnę įmonės verslo strategiją.

 

    „Esu sužavėtas tuo, kaip Humana verslo lyderiai pradėjo suprasti šiuolaikinių technologijų galimybes“, – sakė jis." [1]

 1. CIO Role in Flux as Businesses Embrace New Tech
Loten, Angus. Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 28 Feb 2022: B.6.

CIO Role in Flux as Businesses Embrace New Tech

"Chief information officers say their role is evolving, as cloud computing and other innovations make it easier for business leaders to deploy technology beyond the control of the IT department.

"Of all the roles that we cover, the role of CIO is in the most flux now," said Chris Howard, chief of research at business consultant Gartner Inc. While enterprise technology's impact on the survival of the business has accelerated, the question is who is in charge of that, Mr. Howard said. "Sometimes it is the CIO, sometimes not," he said.

In response, many CIOs are leaving software and other enterprise technology decisions to finance, marketing, sales and other departments, and turning their attention to core business strategies.

The move to let business units run their own IT shop -- a shift tech leaders resisted for years, citing integration and security issues -- comes as cloud computing, data analytics, automation and other capabilities become critical functions at companies, said Kim Bozzella, managing director and leader of the global technology consulting practice at management-consulting firm Protiviti Inc.

Though most CIOs continue to oversee data governance, compliance and other higher-level IT functions, when it comes to day-to-day business apps they are more likely to be seen as advisers.

In a survey last year of 985 IT leaders and 250 line-of-business workers, by market research firm International Data Group, nearly 60% of workers outside of IT described their company's CIO as a "strategic advisor who proactively identifies business opportunities and makes recommendations." IDG said 86% said groups or functions outside of IT have their own tech budgets.

"The push to transform has stressed that companies that silo technology to their IT departments will be quickly outrun by competitors," said Jeff Wong, global chief innovation officer at Ernst & Young LLP.

Irving Tyler, distinguished research vice president at Gartner, said the proliferation of digital technology means CIOs can no longer be the owner-operator of every system in the enterprise anymore." Technology leaders who cling to an older mind-set are "going to struggle," he said.

John Hill, chief digital and information officer at Carhartt Inc., said many of the responsibilities he used to have over enterprise technology are flattening out across the company. His focus now is on ensuring systems are integrated, secure and aligned with the company's long-term strategy, he said: "I do think the role has changed."

Recently, the U.S. apparel maker launched an initiative to create dedicated tech teams in every department, starting with its wholesale, direct-to-consumer and customer-care units. Mr. Hill said the teams -- which he calls "squads" -- consist of both tech and business experts. Though under his watch, he said, "the prioritization of what's being done is in the squad."

At many companies, business segments aren't waiting for IT to bulk up on tech talent. According to Gartner, an average of 41% of today's total global corporate workforce is made up of what it calls "business technologists" -- employees hired into departments outside of IT to build tech tools and other digital capabilities. The average percentage of these employees within organizations varies by industry, from 28% in the public sector, to a high of 55% in the energy sector, Gartner said.

Many tech providers have started pitching cloud-based and low-code software tools, designed to be ready-made or easily customized, directly to business segments, bypassing traditional IT gatekeepers -- a trend that accelerated during the pandemic, analysts said.

Sam Deshpande, CIO at health-insurance provider Humana Inc., said having dedicated tech teams in each of the company's business segments gives IT leaders a unique position to view the entire enterprise-technology ecosystem. As such, he said, every segment's unique decision on tech investing gets integrated with the company's broader business strategy.

"I am impressed with how the Humana business leaders have leaned in to understand contemporary technology capabilities," he said." [1]

1. CIO Role in Flux as Businesses Embrace New Tech
Loten, Angus. Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 28 Feb 2022: B.6.

What signals that tenants are likely to do harm: People whom we are better off not letting to use our rental property

 "Rent is one of the most common options when people are looking for a new home, but have not yet decided to buy their own.

 

    When potential tenants arrive for home inspections, it is worth paying attention to a few essential things that can easily betray that these people can really cause trouble in the future. Real estate broker Ernesta Lunskytė shares her advice in the press release.

 

    Clothing and appearance are important

 

    Although it is said not to judge a book from the cover, the way people come to see it provides a lot of information about their perception of order and cleanliness. If your clothes are old or torn, do not expect your home to stay clean and tidy. It is likely that people who disregard personal hygiene will certainly not pay too much attention to cobwebs at home or a soiled wall. So clothing and human appearance are extremely important even when choosing tenants for housing.

 

    Work experience

 

    Whether tenants will be solvent will probably not be predictable, but to look at their work experience, maybe even ask for employment contracts and make sure people are working and earning a stable income every month is a must. According to Ernesta Lunskytė, a real estate broker, no one who wants to rent a home will say that his job position is unstable or that he may lose his job quickly, but it is the employment contracts that clearly define these things.

 

    "I have had a case where potential tenants have proven that they have jobs, even shown employment contracts, even though they have been looking for work in groups on social networks. So, as it turned out later, the contracts were fictitious and the revenue was only in the plans. So when assessing tenants, even their social networks need to be checked. ”

 

    Deposit avoidance

 

    It is customary to pay a deposit to tenants at the time of signing the contract, which is refunded at the end of the contract, subject to an assessment of the condition of the dwelling. However, it is not uncommon for people to negotiate the payment of a deposit or its amount. This should be an important signal to homeowners about solvency - if potential tenants refuse to pay a rational deposit, they may not want to pay the rent later?

 

    According to real estate broker Ernesta, when faced with such cases, it is better to wait for other tenants and keep your terms, especially when it comes to money: "The deposit is a perfectly normal practice and its amount is usually a one-month rent, if they negotiate a lower fee - how can you be sure that the rent will also be paid when the new month starts? In such cases, I would still suggest canceling the deal and waiting for suitable tenants.”

 

    Choosing tenants for people who have never encountered it can really be difficult - no one wants to entrust their property to anyone, and abandoned debts or destroyed property can do a lot of damage not only to landlords but also to those living nearby. Therefore, in the absence of practice, a real estate specialist always recommends consulting with specialists, lawyers, and, if necessary, simply entrusting the rental process to a real estate broker."