We are pleased to share with you our sixth annual PE Chief Information & Chief Digital Officers Report. As in our previous years, we asked PE CIOs and CDOs for their perspective on compensation, governance, the relationship with their investors, and the differences in the role under PE ownership. We have also asked our participants to gaze into their crystal balls and provide their outlook on the likelihood and potential impact on their companies of macroeconomic events and trends.
VARDIS 2023 PE CIO/CDO SURVEY TRENDS WORTH WATCHING
/ IT & DIGITAL INITIATIVES CENTER TO INVESTMENT SUCCESS
• 45% of CIOs report that IT transformation is central to Investment Thesis
• 93% describe their investor as “digitally savvy” or “aspiring to being digitally savvy”
/ COMMUNICATION GAPS IN THE SYSTEM
• Only 19% of CIOs are measured by a quantifiable hurdle IRR, ROI, MOIC, etc. for IT or digital initiatives
• 15% of CIOs are not aware of role of IT in their investor’s initial investment thesis
/ NOT JUST SCOREKEEPING...A CORE ACTIVITY, AND FUNDED THAT WAY
• Over 70% of CIOs identify “Growth/Increasing Revenue” revenue growth” as their most important area for investment in the next 18 24 months
• Average spend on IT/Digitization initiatives is 3.4% of revenue
• Spend CAGR is over 9% since 2019 with 36% reporting annual increases of more than 20% since 2019
/ CIO COMP UP (THOUGH STILL A RELATIVE VALUE). TIME FOR CIOs TO UP THEIR GAME TO SIT AT THE TABLE.
• Average target CIO comp now up to $335,000
• Less than 25% are first time CIOs experience counts
• CIOs need to justify a seat at the table cannot accept “I don’t know” in response to questions about their investor’s investment thesis or manage to a strict internal ROI or IRR hurdle on IT/Digitization Initiatives
Download the Report Here
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