Who is the highest-paid tech executive in America, as ranked by salary, bonus and exercised options in 1998? It's not Bill Gates. He doesn't even make the top 40.

A survey by trade journal Electronic Business gave the No. 1 slot to Craig Barrett, head of Intel Corp. He took in $117 million in 1998. Exercised options accounted for all but about $3 million of that.

Some accountants say the better way to measure executive compensation is to place a value on options when they're granted--many execs not on this list do very well by that measure. Electronic Business's ranking calculated options' worth based on when they were exercised.

The Washington region has grown rapidly as a technology center, but not one local executive made the top 40.

As for Gates, he made only $542,297 in salary and bonus and had no options to exercise. As of September, he owned 515,777,800 shares of Microsoft, valued yesterday at close to $90 billion.

High-Tech's 1998 Highest-Paid Executives

Rank, Name

Company, title

Salary

Options exercised

Total*

1.Craig R. Barrett

Intel president and CEO

2.John McCartney

3Com; former president,client access unit**

3.Henry B. Schacht

Lucent Technologies retired chairman

4.Leslie L. Vadasz

Intel SVP and director, corp. bus. development

5.Scott G. McNealy

Sun Microsystems chairman, pres. and CEO

6.Lou Gerstner Jr.

IBM chairman and CEO

7.Morton L. Topfer

Dell Computer vice chairman

8.Albert W. Duffield

Peoplesoft SVP and strategic adviser

9.Peter Karmanos Jr.

Compuware chairman and CEO

10.Ross W. Manire

3Com SVP, carrier systems

$454,200

$505,275

$726,580

$255,000

$698,846

$1,875,000

$616,346

$260,000

$600,000

$380,207

$114,231,947

$71,337,331

$65,016,244

$54,759,038

$45,107,070

$32,801,922

$37,519,304

$35,393,754

$21,904,943

$23,002,120

$116,840,147

$78,452,969

$67,097,584

$56,067,638

$46,808,122

$42,380,556

$40,172,080

$35,769,669

$24,104,943

$23,537,804

*Total includes salary, bonus, other compensation and options

** McCartney joined the company as CEO in June 1997 and resigned as an employee on March 22, 1998. He currently is a consultant to the company.

SOURCE: Electronic Business