Administration March 7, 2002

FINANCIAL PERFORMANCE – CFO, Financial Officer Pay Up Sharply

July 27, 2000 (PLANSPONSOR.com) - The total average salary of a chief financial officer (CFO) rose 9.3% this year, nearly twice as much as the 4.9% growth in managerial and professional salaries according to a new survey.
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The total average salary compensation for all financial professionals is 8.5% higher.    

The survey, conducted by the Association for Financial Professionals (AFP), formerly the Treasury Management Association found that total average salary for CFOs was $175,870:

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  • Average compensation: $142,898
  • Average bonus: $33,548
  • Average deferred compensation: $6,733

The survey also noted that the positions of president/CEO saw a 13% increase, while vice president-finance was 10.8% higher and assistant vice president-finance rose 11.8%, on average, compared with a 2.7% rate of inflation as measured by the consumer price index.

Those in the computer industry fared best, enjoying an average increase of 12.1%.  Construction was second with 11.6% and business services/consulting 11.1%. Average annual growth in compensation within the banking sector was 8.9%.

Asked what contributed most to their increase, over half (52%) noted a merit increase as the most important factor, with individual performance ranked second (38%). 
 
The survey also found:

  • Nearly half (44%) of respondents have been involved in a merger/acquisition in the past three years, with more than 60% experiencing staff reductions as a result;
  • Nearly half of the companies surveyed now offer hiring bonuses;
  • Two-thirds of employers offer flexible workdays and daily casual business dress options;
  • Those in the Northeast received higher salaries, but the 8.5% increase was less than the 9% experienced in the Southeast and West;
  • Moving expenses (82%) and temporary living allowances (68%) were the most popular incentives, with nearly 40% offering to purchase a former residence in a weak housing market as a hiring incentive.

The entire survey, complete with charts and graphs, is available at http://www.afponline.org/library/compsrvy00.pdf .

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