Contact:
Linda Knopp
Communications Manager
(740) 593-4331
lknopp@nbia.org

NBIA Report Examines Incubator CEO Compensation Levels

December 5, 2005

ATHENS, Ohio—The National Business Incubation Association today announced the release of 2005 Compensation Survey of Incubation Executives, the most recent installment in the NBIA Research Series.

The report analyzes the results of a summer 2005 compensation survey of U.S. incubator executives to see how salaries fared following the dot-com bust and the events of 9/11. Overall, the survey revealed good news for industry professionals. Median salaries of full-time incubator CEOs reached $72,000 in 2005, up 13 percent over salaries in 2000, when NBIA last conducted a compensation survey. Nearly one in five full-time incubator managers reported an annual salary of more than $100,000 in 2005.

The results of the 2005 study came as welcome news after salary data from the industry’s early years revealed that incubator executives earned less than other professionals with similar skill sets and responsibilities. Coopers & Lybrand (now PricewaterhouseCoopers) conducted the first compensation survey of business incubator executives in 1990. At that time, top industry professionals earned a median salary of only $36,000. NBIA based its 2000 and 2005 compensation studies largely on the original survey developed by Coopers & Lybrand.

“NBIA frequently is asked for up-to-date compensation data for incubator executives,” said Dinah Adkins, NBIA president & CEO. “This report answers the important question of how much top incubator executives receive, giving incubator managers some good ammunition to use when entering salary negotiations.”

Business incubation programs catalyze the process of starting and growing companies by providing entrepreneurs with the expertise, networks and tools they need to make their ventures successful. In 2001 alone, North American incubators assisted more than 35,000 start-up companies that provided full-time employment for nearly 82,000 workers and generated earnings of more than $7 billion.

NBIA’s latest compensation survey report features more than 50 annotated graphs highlighting the most up-to-date salary and benefits information available for both full-time and part-time incubator managers. Data points include incubator CEO salaries by incubator type, location, program sponsor and program start-up date; information about fringe benefits packages; and demographic information. Also included is a look at financial incentive programs, based on follow-up interviews with respondents.

The National Business Incubation Association is the world’s leading organization advancing business incubation and entrepreneurship. Since 1985, NBIA has provided industry professionals with the information, education, advocacy and networking resources they need to bring excellence to the process of assisting early-stage companies.

The NBIA Research Series offers timely business incubation industry research with the latest facts and figures in an easy-to-read format. Earlier volumes include The Incubation Edge: How Incubator Quality and Regional Capacity Affect Technology Company Performance, 2002 State of the Business Incubation Industry, Incubating in Rural Areas: Challenges and Keys to Success, and Best Practices in Action: Guidelines for Implementing First-Class Business Incubation Programs.

For more information or to purchase 2005 Compensation Survey of Incubation Executives, contact NBIA at (740) 593-4331 or visit NBIA’s online bookstore at www.nbia.org/store. The report is available for $25 for NBIA members/$32 nonmembers (plus shipping).