The Average Cfo Salary + 27 Key Cfo Interview Questions

If you’re unsure about what salary is appropriate for a chief financial officer, visit Indeed’s Salary Calculator to get a free, personalized pay range based on your location, industry and experience. At the top of the proverbial food chain, in the corporate world, is the chief executive officer .

• Only in some countries of Southern Europe and Eastern Europe did we find lower average compensation.
• Public sector employees in Netherlands earn 5% more than their private sector counterparts on average across all sectors.
• If your company is in one of the early phases like finding product/market fit, look for a CFO with experience in that phase rather than someone who has worked in larger, mature corporations.
• When the education level is High School, the average salary of a Chief Financial Officer is 6,350 EUR per month.
• As you begin your search to fill the CFO role, whether part-time or full, there are a few things to consider as you find the right fit for your company.

The average salary for a CFO with 7+ years of experience is $254,563. The chart at right shows total compensation for all 49 companies, ranging from top money-maker Perry Sook of Nexstar Broadcasting ($10,371,000) to Tufco Technologies’ James F. Robinson ($231,906). If you’re a woman, you can expect the route to the top to be more challenging. But as the three women in this year’s list suggest, gender these days may no longer automatically disqualify a CFO from being awarded rich packages. CFOs with experience in PE typically oversee finances, but they may also manage human resources, operations, supply chains, negotiate, legal, and technology, as well as real estate, in some cases.

The Salary Of A Finance Manager In The Oil And Gas Services Industry

We broke down Chief Financial Officer salaries by education level in order to make a comparison. Lastly, employees with more than twenty years of professional experience get a salary of 14,100 EUR per month, 9% more than people with fifteen to twenty years of experience. If the experience level is between fifteen and twenty years, then the expected wage is 13,000 EUR per month, 6% more than someone with ten to fifteen years of experience. Moving forward, an experience level between five and ten years lands a salary of 10,100 EUR per month, 42% more than someone with two to five years of experience. For 40 years, Crain’s Cleveland Business has been the trusted source for business news and information for Northeast Ohio’s top executives and business owners.

Job growth will vary by industry, fueled by the establishment of new companies and organizations. Since CFO jobs and other executive jobs offer higher than average salaries, competition for positions is expected to be strong. Candidates with the most experience and education have the best chances of landing the best executive jobs.

Examples Of A Cfo Salary

How do salaries for CFOs and finance leaders stack up across continents? This questions isn’t always easy to answer, with pay conversations mostly off limits in polite society. The one metro area CFOs can expect to out-earn their New York counterparts is San Francisco, where salaries are estimated to be about 4% higher. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Investopedia does not include all offers available in the marketplace. The Bureau of Labor Statistics estimates that the number of top executive jobs will grow by 4% from 2019 to 2029. This comes as companies’ finances, accounting, and bookkeeping have become more complicated.

However, across all sectors it is evident that there is a general upward trend in CFO pay. Therefore, a rise in CFO pay for the next fiscal year can be expected. The primary factors that impact the median salary of a CFO include geographic location, and the experience and personal qualifications of the person. Base salary and bonuses make up roughly 80% of the total compensation a CFO should receive within a given year. The other areas of compensation are bonuses and benefits, as well as perks. A 2015survey by Jobviteindicates that while average jobs are filled in 43 days, it takes an average of 71 days to fill a C-level position and 76 days for a position with “director” or “vice president” in the title.

Of Chief Financial Officers In The United States Think Their Salaries Are Enough For The Cost Of Living In Their Area

Basilio, 44 years old, replaces David Knopf, who was the youngest CFO at a Fortune 500 company when he took the job at age 29 in 2017. He drew Rs 21.10 cr last fiscal, almost 72% higher than the compensation paid to the steel maker’s CEO, Vinod Nowal. 79% of Chief Financial Officers in the United States think their salaries are enough for the cost of living in their area. There’s a distinct fall-off in pay as you get outside of the traditional tech hubs, with Raleigh, NC bringing up the rear. Hearst Newspapers participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. The company’s CFO John Rogers made more than Read both last year and in 2020.

• Financial statements and accounting statements are supervised by the CFO.
• Base pay is an employee’s initial rate of compensation, excluding extra lump sum compensation or increases in the rate of pay.
• CEOs act as the company’s public face and make major corporate decisions.
• One very important factor is CFO salary vs total CFO compensation.
• Total compensation includes things like bonuses and stock options.

A chief executive officer is the highest-ranking executive of a firm. CEOs act as the company’s public face and make major corporate decisions. The average CFO Salary in the banking industry was $133,879 in 2021, according to Ziprecruiter.

The Leaders Of Leadership: Companies With The Best Management In 2017

In 2017, his final full-year with the company, Sorrell’s pay was cut back to $19 million-plus. A CFO job description includes providing valuable strategic leadership of a company’s financial systems and transactions. It is the highest, and highest paid, accounting position in a company. Chief Financial Officers are in charge of managing finances at the highest corporate level.

The chief operating officer is a senior executive tasked with overseeing the day-to-day administrative and operational functions of a business. The business of being a CFO will likely change a lot over the next decade, including navigating the rise of cybersecurity and the advancement of technology. On average, CFOs make about eight times as much as the company’s employees. CFO salaries vary widely depending on their experience, the size and type of company, and the city in which it is located. The Chief Financial Officer, or CFO, is an important executive for modern-day corporations. Minimum 10 years’ experience in accounting and financial management practices. They might have professional licensure or certification, making them certified public accountants or certified management accountants .

As per the Bloomberg business, the deal of her hiring totalled to $70million. She is an American business executive and most importantly, the Chief Financial Officer of Alphabet Inc. and it’s subsidiary Google.

His foremost title was that of vice president of finance and corporate controller. In addition to this, the stock awards amount to – $46.61 million. CFOs are also responsible for ensuring the accuracy of all reporting and auditing functions, and they make certain that the company complies with local, state, and federal laws. If they work for a public company, this means staying on top of U.S. The average salary for a CFO with 7+ years of experience is $232,550.

One might assume that the events of 2020 and early 2021 have created a clear acceptance and embrace of remote work. With the right tools and processes, finance teams can easily work from home and be just as productive. Salaries seem to increase by roughly one third with every five years of experience.

Overall, CFOs will not only be managing finances and overseeing banking relationships, but they’ll also need to be able to manage big data—embracing artificial intelligence and data analytics. As well, the CFO position will see increased demand when it comes to regulatory compliance. This includes managing risks, whether it be taking risks or protecting against disruption. Accomplishes finance and organization mission by completing related results as needed. Monitors financial performance by measuring and analyzing results, initiating corrective actions, and minimizing the impact of variances.

At Wpp Cfo Rogers Is The Highest Paid Executive

Thus, the average CFO makes almost eight times more than the average worker, making the CFO a very lucrative career by comparison. Management roles vary by organization, depending on a company’s history, the characteristics of itsindustry, and the demands of investors. And although fitting CFOs into a clear-cut typology may seem artificial, we found it useful to understand how companies are filling the role to get a clearer picture of how it’s changing. Based on our research, we categorize CFOs into four general profiles.

Companies in this year’s group generated 2012 revenue of $50 million to $1.1 billion, where full-year compensation was reported. Data from proxy statements for 49 companies highest paid cfo were included in the study. In the last report, which evaluated 2011 numbers for 58 companies, annual revenue had climbed by 6 percent and net income was flat.

So it makes sense to offer a CFO salary that matches this responsibility. CFO salaries are significantly above average, even for executives at a similar level. The figures are just for salaries; equity- or other performance-based compensation isn’t included, the survey report suggests. Consistent with their executive function, CFOs are the highest-earning corporate professionals among those doing finance-related work. According to ZipRecruiter, the average salary of a Hedge Fund CFO is $120,303.

As a consequence of this heavy reliance on bonuses, the 2020 Covid crisis could have lingering effects on total compensation for a range of C-suite players, including CFOs. Longterm stagnation of CFO compensation seems unlikely, however, as challenging https://simple-accounting.org/ times call for greater skill and acumen. Those go with experience and, in the financial field, experience comes at a cost. Whether you want to be a small fish in a big pond, or vice versa, CFO pay will vary based on company size.

And just like them, I’m here to show you how you can pass the CMA exam on your first attempt without wasting money or time. Click here to learn more about me and the awesome team behind CMA Exam Academy. Here’s the breakdown of CFO salaries by location in some of the top paying areas.

Executives in government agencies receive the lowest median salary at $107,130. As the top financial expert of a corporation, chief financial officers can expect to handle and maintain the millions of dollars that move through an organization. As a result, CFOs should be compensated in accord with their high profile, fast-paced executive position. Companies must aim to craft a compensation package that matches the caliber of a CFOs work as a means to attract and retain top talent. At the same time, companies must ensure that pay incentivizes and motivates executives towards results.

However, since 2016, female CFOs have experienced a steep increase in pay. In 2017, compensation for male and female CFOs was almost on par, at $3.28 and $3.29 million, respectively. This was the first year that female CFO pay exceeded male CFO pay, and since 2017, women have consistently out earned men. The technology sector had strong representation in the top ten highest paid CFOs. In 2018, Safra Catz of Oracle was the highest-paid CFO, with a total compensation of over $108 million. The second highest-paid CFO was Ruth Porat of Alphabet with a total compensation of just over $47 million, more than $60 million less than Catz. Total compensation for CFOs has steadily risen over the last 10 years.

Annual Increment Rate By Industry 2021

Depending on the type of company and its location, a CFO salary can be among the highest of any executives. When bonuses are included in salaries, the median total compensation for a CFO is $541,930 per year. Those within the bottom 25th percentile should expect to earn $375,642 per year, and those within the 75th percentile should expect to earn $792,957 per year. In larger companies, the Chief Financial Officer salary reflects the high level of responsibility the job entails. A CFO must understand every aspect company business and provide leadership in finance and accounting. This includes overseeing budgeting efforts, directing policy and managing the communication of financial information. CFOs work with other executives and leaders within their company and maintain relationships with investors, auditors and external partners and.