The Bureau of Labor Statistics projects that jobs for top executives including CFOs will grow 4% between 2019 and 2029. However, the occupational outlook is stronger for some specific job titles than others. For example, jobs for CEOs are expected to decline 10% during the next few years, while jobs for general and operations managers are expected to increase by 6%. Traditionally, the role of the CFO was mainly overseeing book-keeping, management accounting, financial reporting, and statutory compliance. Thus, the CFO was more of a support function, and the strategy was left to the other executives. The country where you are based, the size of the company, and the industry where it operates obviously have a bearing on compensation. Australia dominates the list of best-paid CFOs, with China and Hong Kong having a strong presence .
(Private company CFOs make 45% less than those at public companies.) Tack on benefits and bonus and you can expect to pay $225,000 to $275,000 depending on business size. If chief financial officers are being increasingly recognized for their significance in a company’s success, shouldn’t CFO compensation accelerate as well? One way of examining this question is to analyze the relationship between CEO and CFO pay increases over time. Paradox reviewed the CEOs in the study who had the same job in and found that at the median, total reported compensation for the group had risen by 13 percent ($235,492) over four years . During the same timeframe, for CFOs in the same job , the change in median total compensation increased by 28 percent ($146,046).
Similarly, overall total compensation for CEOs, defined as base salary, annual cash incentives, and long-term incentives such as stock options and stock awards was, for the most part, fairly steady. The median total compensation for DFW midsize company CEOs in 2012 was $1,722,394, versus $1,844,302 in 2011. Typically, annual incentives constitute a larger proportion of CEO compensation in midsize companies than in large public companies, where long-term incentives greatly outweigh the value of annual bonuses. This year’s median annual bonus award for midsize companies was $336,000, including eight companies that awarded no bonus, versus $425,000 for this same group in 2011. Decreases in bonuses occurred in 12 companies where the same incumbent was in place in both 2011 and 2012.
According to ZipRecruiter, the average salary for a non-profit CFO is $133,576, based on job postings and third-party data. While healthcare is a typical perk, high-level executives such as CFOs have access to disability and life insurance.
This is the first time that a woman topped the CFO compensation league table. Another woman, Hon Hing Hui , is No. 7 as Group CFO of Hong Kong telco PCCW (US$4.2 million) and also No. 20 as Group CFO of HKT Trust and HKT Limited (US$2.6 million), which is majority owned by PCCW. Combining her compensation for the two jobs effectively places her second to Yu in the league table. There’s a lot of movement in this year’s list of Asia’s Millionaire CFOs and promotion is one of the reasons. CFOs report to the CEO, and they are one of the positions that do so. It is also possible that the CFO serves on the board of directors.
Ruth Porat has been recognised as the 21st most powerful woman in the world in 2018 by Forbes. With this, Porat was also listed ninth on Fortune’s most powerful women list. Today, I bring you the list of 5 most influential CFO’s serving at the world’s largest corporations.
Robert joined Intel as the executive Vice president and first outside Chief Financial Officer in October 2016 replacing Stacy Smith. He has been serving Intel Corporation since January 2019 with his distinguished abilities as a CEO. She did so by reorganising some aspects of the company and bringing in even more financial discipline. Institutional Investor named Porat – The best Internet CFO – for 2018 All America Executive Team. It was on March 24, 2015, that the news of Porat joining Google as its new CFO came out.
The companies now have to invest in physical plant, and then create, price and market 5G services. All of that will require CFOs who can quickly grasp the potentials and pitfalls inherent in such a large transformation. Even though a CFO is vital to company operations, they play a different role than the CEO.
You won’t see National Australia Bank’s Craig Drummond, No. 4 last year (US$5.9 million), in this year’s list either. He resigned from the bank in February and was replaced by his deputy, Gary Lennon. Drummond said he joined the bank in 2014 thinking he had a chance to become CEO, but had apparently concluded this is no longer the case. Based on 1,186 responses, the job of Chief Financial Officer has received a job satisfaction rating of 4.26 out of 5. On average, Chief Financial Officer s are highly satisfied with their job. David Knopf, who was the youngest CFO in Fortune 500 history when he took the job at age 29 in 2017, will be replaced by Mr. Basilio, 44, who has been with the company for nine years.
Here’s a breakdown of average salary for a CFO in everything from a startup to a large public company. The median base salary for a CFO in the United States is $362,030, and the median total compensation package is $506,386. Microsoft CFO Amy Hood earned a salary of $975,000 in 2020, according to the company’s public filings. In addition, she earned $14,792,679 in stock incentives and $3,734,981 in non-equity compensation. Altogether, her total compensation in 2020 was worth $19,626,234.
Companies in the six non-financial service industries in our study have annual revenues between $100 million and $3 billion. https://simple-accounting.org/ Companies in the two financial services industries in our study have assets between $100 million and $6 billion.
Financial statements and accounting statements are supervised by the CFO. Based on Salary, CFO salaries in the United States averaged $393,377 per year.
Whether the Covid economic downturn results in lower performance — and lower performance-based pay — over the next few years is an open question. Incentive packages for 2020 were mostly finalized before the pandemic hit, so we don’t expect to see the full impact until 2021. While total company revenue has the largest effect on CFO compensation, not surprisingly the more experience your CFO candidate has, the higher the compensation they expect. Especially for mid-to late-career CFOs, the lessons learned from living through multiple business cycles have prepared them to manage in a difficult environment. A recent study found that overall, CFOs saw increases of 3.3% in salary and 6.6% in total compensation in 2018. Those increases appear to have slowed in 2019 and total pay may actually stall in 2020 and 2021. Pay for Chief Financial Officers has been rising, and with good reason.
In 2015, the number of people living in the United States reached 4 million. Typically, senior managers are “higher” than vice presidents, although many times a senior officer may also hold a vice president title, such as executive vice president and chief financial officer . If organized as a division then the top manager is often known as an executive vice president . CFOs at larger companies make more than those who manage lower revenues. And CFOs at public companies make more than their counterparts at private companies of the same size — about 45% more according to a recent survey.
Luca Maestri serves as the senior vice president and the chief financial officer for Apple. In his term, Luca is responsible for accounting, financial planning and analysis, business support, real estate, treasury, internal audits, and tax functions at Apple. highest paid cfo Many employers want their CFO to have a graduate degree and extensive experience in finance, accounting, and management. CFOs typically land the job after holding previous roles as a controller, director of accounting, or vice president of finance.
CMAs are particularly well-positioned to be high-powered players in the c-suite. Start it as a side hustle, do it in a consultative capacity, and earn some great credentials to accelerate your career. The complete range of salaries varies from $50,500 to $133,400 with influencing factors including company size and location. The average salary for CFOs in the healthcare industry is $154,399 in 2021, according to ZipRecruiter. This does not include stock options, bonuses, or other forms of compensation. For instance, a CFO in Keya Paha, Nebraska, near the South Dakota border, will expect the lowest salary in the country at $284,250 and a compensation package totaling $354,259.
Yu’s salary was just US$392,157, which is lower than second-ranked Sixt’s US$605,154 salary and the US$1 million of both Guo Lijun of WH Group and Peter Beaven of BHP Billiton. But Yu’s option awards came in at US$6.9 million, while Sixt and Beaven had none (although they got a bonus of US$5.6 million and 1.3 million, respectively; Yu did not get a performance bonus).
At Driven Insights, we provide remote CFO services for a number of companies in a wide range of markets. Our CFO-led services include controller and bookkeeping as well so that you can outsource your entire finance department to keep things running efficiently and often at a much lower cost than an in-house team. If you have to go with someone outside of your industry or current growth phase, adjust your pay rate accordingly. In other words, if the CFO is going to have to learn on the job, this person won’t be quite as valuable as someone with extensive experience relative to your industry and growth stage. A chief financial officer is the senior manager responsible for overseeing the financial activities of an entire company. Investopedia requires writers to use primary sources to support their work.
What’s the average Chief Financial Officer salary in the United States in 2022? Well, that depends on the size of your business and whether your business is located in Keya Paha, Nebraska or San Francisco, California . Despite these quirks, this analysis pretty clearly shows the finance function career ladder, and gives a benchmark for CFOs and hiring managers to work from as they build their teams. We know that the CFO is often the first full-time finance employee in startups, for example, and their salary will be lower in a smaller company . So it’s not necessarily a case of CFOs working their way up the salary ladder – it’s a question of leverage and negotiations. A signing bonus is a financial award offered by a company to a prospective hire to accept a position. Base pay is an employee’s initial rate of compensation, excluding extra lump sum compensation or increases in the rate of pay.