Compliance December 8, 2002

If At First You Don't Succeed… – 3-

August 24, 2001 (PLANSPONSOR.com) - Wealthier Americans can bridge the "advice gap" by hiring an investment advisor. But few working families can afford such a luxury on their own. Instead, they end up getting their advice from Bob at the coffee shop.
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PLANSPONSOR:  What kind of impact will these new competitors have on the advice market?

BOEHNER :  Today there are all these firms out there, making investment decisions which impact the investment returns of many of these 401(k) plans.  And yet these same firms are largely prohibited from sharing that expertise with these same [plan] participants.  I’m optimistic that the additional competition will enhance both the type and quantity of investment advice available to participants.

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One of the phenomena that we have noticed is that despite a growing number of advice offerings, most participants don’t yet seem to be taking advantage.  Of course, we are still early in the product cycle, but do you think the Retirement Security Advice bill will make a difference in participant behavior?

Look, I’m just a congressman.  What may happen in the marketplace is anyone’s guess.  I don’t know that it will – but I’m convinced that the American people, most of the time, get it right.

– Nevin Adams            editors@plansponsor.com

Editor’s note:  Early August, the bill passed the Employer-Employee Relations (EER) Subcommittee by a voice vote.  As we went to press, the bill had attracted 42 co-sponsors from both parties, including nine Democrats.  The current list of co-sponsors includes Rep. Martin Frost (D-Texas), the chairman of the House Democratic Caucus, the third-ranking Democrat in the House, House Majority Leader Dick Armey (R-Texas), House Financial Services Committee Chairman Michael Oxley (R-OH) and Representative Rob Portman (R-Ohio).

The full committee is expected to vote on the bill sometime soon after Congress returns in September.

Administration December 7, 2002

Average Finance Pay Soars in 2001

July 24, 2001 (PLANSPONSOR.com) - Total average compensation for treasury and financial management professionals increased by 8.1% in 2001 from the previous year, according to a new survey.
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The Association for Financial Professionals’ 13th Annual Compensation Survey also found that nearly 90% of the practitioner respondents received an increase in salary this year.

The survey found that financial officers’ average total compensation, comprising base salary, bonus and deferred compensation, was $122,170, compared with $112,986 in the 2000 survey.

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Why Ask Why?

Survey participants were asked to select factors that contributed to their salary increases,

  • 54%, of practitioners cited merit as the chief contributor,
  • 38% said individual performance,
  • 24% benefited from “general increases”
  • 13% cited cost-of-living adjustments

“Check” It Out

The highest total compensation packages are taken home by:

  • President?s or CFO?s who receive average compensation packages of $241,841
  • followed by CFOs who earn $190,933 on average,
  • Vice-presidents of Finance who get $178,724, and
  • Treasurers who receive $158,404

Location, Location

Across industries, the highest compensation gains were recorded in:

  • banking-related financial services, where compensation increased by15%,
  • followed by the software and hardware industries which rose by13.6%, and
  • the non-petroleum energy sector, where remuneration was up by13.5%.

At the other end of the scale, were:

  • the hospitality industry, where compensation rose by 6.9%
  • the non-profit sector which increased by 7%, and
  • compensation in the petroleum sector, which increased by 7.1%

Further, the survey found that practitioners in the Northeast received higher packages than their peers, with average total compensation of $137,112, an increase of 8.5% on 2000 numbers. In other regions,

  • those in the southeast received $108,923, up 7.2%
  • followed by practitioners in the Midwest who received $114,822, an increase of 7.2%,
  • while their counterparts in the West received $113,318, an increase of 8%

Other Benefits

Over two-thirds (68%) said their firms offered a flexible workday, while 21% have flexible workweeks. Nearly three-quarters (74%) have casual dress codes.

More than 60% of bankers and nearly half (45%) of corporate practitioners “experienced” a merger in the last two to three years. Of those, nearly three-fourths of the bankers and half the practitioners saw layoffs in their department as a result.

Most popular recruiting tools were moving expenses and temporary living allowances, followed by hiring bonuses and the purchase of a former residence.

The survey gauged the responses of to over 150 questions on the career development, compensation and benefits, of 2,980 financial professionals.

Go to http://www.AFPonline.org for a summary of the survey results.

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