Tech Sector Sees Compensation Gaps and Expanding Roles: Access Key Data and Trends
Tech sector security budgets are on the rise as CISOs at those organizations enjoy higher total compensation on average across this industry. While the higher compensation figures are typically due to equity incentives, CISOs in the tech sector are also often tasked with a broader role and more responsibilities around IT oversight than comparable security leaders in other sectors. This piece breaks down a few key data points relevant to the state of security budgets and compensation in the tech industry, as uncovered in our 2025 Compensation and Budget Benchmark for CISOs in Tech Report.
Are Tech Security Budgets Increasing?
In 2024, the tech sector saw a 9% year-over-year increase in security budgets, representing a four-percentage-point improvement over 2023 levels. (See Figure 1.) Security budgets in the tech sector, as a percentage of both IT spend and revenue, far exceed those in other industries, pointing to the criticality of cybersecurity in digital-first businesses, where cloud-native infrastructure and expanded attack surfaces demand more robust defenses.
While the 2024 increase doesn’t bring budgets anywhere close to 2021 and 2022 numbers, the tech sector experienced budget growth as well as budget reductions. About 20% of tech firms reported budget decreases, and a similar amount reported increased security spend by double digits.
Some firms, like cloud platforms and AI startups, are increasing security spending significantly. This reflects diverse business conditions in which some companies are experiencing growth and others are facing funding constraints and layoffs. Some organizations, particularly in healthtech and digital infrastructure, are cutting budgets, driven by economic pressures, funding slowdowns, and layoffs. This divergence signals bifurcated business conditions within the tech industry.
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“Security leaders continue to work closely with product leaders in the tech sector, specifically at cyber vendors and SaaS companies. Customers are continually asking probing questions about security amidst near-daily news on cyber breaches and identified product vulnerabilities,” says Steve Martano, a member of the IANS Faculty and partner in Artico Search’s cyber practice.
Figure 1 - Tech Security Budget Growth
Elevated but Uneven Tech CISO Compensation
CISOs in the tech industry enjoy higher total compensation and continue to early more than their peers in every other sector. (See Figure 3)
This is especially true in fintech and software companies at which compensation packages are often bolstered by significant equity grants. Cash pay is similar across sectors, and equity differentiates the compensation packages in the tech industry. Overall, fintech CISOs lead with the highest average compensation of $1.1 million, while healthtech CISOs lag much further behind.
Figure 3 CISO Compensation in Technology
“Tech is a broad category, but we clearly see compensation packages mirroring the industries these companies serve. We see financial services CISOs diversifying their experience by moving from traditional financial services institutions to fintech, bringing their top-quartile compensation expectations with them,” Martano explains.
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Tech CISOs: Broader Responsibilities, Less Job Satisfaction
Tech CISOs often have a broader role in the organization and a wider range of responsibilities. (See Figure 4) Nearly all of them cover SecOps, governance, risk management and compliance (GRC), architecture and engineering (A&E), tech risk and compliance; application security (AppSec), and third-party risk management. And in some cases, CISOs have full IT ownership, while more than 40% have IT oversight—especially at cyber vendors.
This increases operational complexity for tech sector CISOs, causing some security leaders to be spread too thin. That, in turn, leads directly to CISO job dissatisfaction in the tech sector.
“CISO scope in the tech sector is much more product- and app-centric compared to other sectors such as healthcare or financial services, which are often more risk-based and compliance-focused,” Martano adds.
Figure 4 Tech CISOs: Broader roles and responsibilities
The 2025 Compensation and Budget Benchmark for CISOs in Tech Report reveals a tech sector in which rising security budgets and top-tier compensation are matched by expanding responsibilities and growing strain. While tech CISOs remain among the highest-paid across industries, their roles encompass more than cybersecurity.
CISO Compensation & Security Budget Benchmark Reports
Each year, IANS, in partnership with Artico Search, releases a series of benchmark reports on CISO compensation, security organization, security staff compensation, and job satisfaction. These in-depth reports feature new takeaways, uncover a wealth of insights, and provide valuable leadership guidance to fine-tune your current role, department, and career path.
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