Which type of small business makes it more attractive financially for its top officials? According to a new survey of 466 United States companies with sales in the 5 million bracket made jointly by INC magazine and Peat, Marwick (accounting), the highest paid small-business chief executive officers (CEOs) work for companies producing nondurables. Second are those in the durable goods field; and third are heads of high-tech organizations. Average compensation in the the different industries:
* Nondurable-goods executives: base pay of $96,000 but a total of $128,000 with bonuses.
* Durable-goods executives: base pay of $101,000 but jumping to $121,000 with bonuses.
* High-tech executives: base pay of $100,000 but rising to $118,000 with bonuses.
Regionally, the best pay for these CEOs is the Northeast followed in ranking by the South Central/Southwest, the Southeast, the mid-Atlantic region, the Midwest, and lastly by the West Coast. The survey found that most small businesses pay some sort of bonus to executives. Formulas most generally used ranked like this: (l) for growth in earnings, (2) for growth in sales, (3) for profit percentages improvement, and (4) for increased profit dollars.
Most popular forms of executive benefits in small-business companies are health/life insurance policies, company cars, and tax-and-financial personal planning assistance.