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Before joining the company, he had 24 years experience at Goldman Sachs, his main responsibility being management and strategy. In 2014, he received a whopping $27,112,617 compensation, which included a$953,846 base salary and $23,730,659 worth of restricted stock awards.
Australia dominates the list of best-paid CFOs, with China and Hong Kong having a strong presence . As in previous lists, stock and option awards can be exceedingly rewarding. 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). Kenneth Goldman, CFO of Yahoo, does his reading by serving on the boards of directors, not only of Yahoo Japan but also of other firms seemingly outside the bounds of his industry. Finding the time to serve on multiple boards may seem like a challenge, but the investment will pay off. Serving on a board gives you an up-close look at the financial strategies of a different business and in a fresh context. Like a writer who reads, you expose yourself to novel and unique creative possibilities.
Join Comparably for free to anonymously compare compensation and culture data. 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. 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.
Because that’s how the gadget giant works — it makes stock grants every two years. Oppenheimer only made $1.4 million in 2011 but received a stock award last retained earnings year valued at $66.2 million at the time of the grant. Check out FierceVideo’s, focused on executives within the pay TV and streaming video industry.
Additional Cfo Compensation
In the United States, an average 3 percent pay increase is predicted by Korn Ferry, the same as for 2017. Adjusted for the expected 2 percent inflation rate in 2018, however, the real wage increase is 1 percent—down from last year’s 1.9 percent. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
An audit partner of a major accounting practice can expect A$250,000 to A$400,000, plus a larger bonus of A$80,000 to A$150,000, Jenkins says. And topping the list is consulting, where partners in business advisory at a major accounting practice can expect A$300,000 to A$400,000, plus a bonus of A$100,000 to A$200,000. Alison Harrop FCA, Dexus CFO since 2015, earned A$704,468 (total package A$2,047,915) last year. She was previously deputy CFO of Dexus and financial officer and general manager, group finance at Westpac. Compared to CEOs, CFOs’ average compensation mix in 2019 was more evenly split between cash and long-term incentive income and equity, with equity slightly higher than cash. All of which may explain why many companies appear to be embracing more-tangible forms of payment.
This information is later presented to upper management in form of reports, which means strong presentation and public speaking skills are extremely CARES Act beneficial. Financial controllers in small or medium enterprises can expect to earn A$180,000 to A$250,000, plus a bonus of A$10,000 to A$50,000.
Explore UND’s online Master of Accountancy and learn how you can further your finance career. A prospective CFO must have command of a company’s dollars and cents, where they come from and where they go. Stints as an auditor, controller or treasurer can boost a candidate toward the CFO office. An advanced degree in accounting also provides a strong foundation for pursuing a career as a CFO. The ability to use technology, especially in the burgeoning field of data science, can help a CFO track and analyze the company’s finances seemingly down to each penny. Built In Colorado is the online community for Colorado startups and tech companies.
A CFO with solid industry knowledge can quickly serve as a strategic partner to the business. True enough, last year the median CFO salary rose a modest 5.2 percent, according to our survey. That’s a little south of the 6.9 percent increase in 2001, the 6.1 percent in 2000, and the 6.3 percent in 1999. Options, of course, still have their supporters, especially among executives at startups and technology companies. The finance chiefs at Bank of America, Bear Stearns, and John Hancock scored high in this year’s survey of best-paid CFOs. Candidates should have held positions of increasing responsibility within an accounting department, such as director of finance, director of accounting or controller.
What It Takes To Get To The Cfo Role
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In financial services, CFOs can expect a salary of $203,500 at the midpoint. The average bonus for a CFO is $55,307 which represents 20% of their salary, with 75% of people reporting that they receive a bonus each year. CFOs make highest paid cfo the most in San Francisco at $297,668, averaging total compensation 9% greater than the US average. The average salary for a chief financial officer is $127,987 per year in the United States and $20,000 profit sharing per year.
- And topping the list is consulting, where partners in business advisory at a major accounting practice can expect A$300,000 to A$400,000, plus a bonus of A$100,000 to A$200,000.
- With bonuses and benefits, the median salary can go from $363,567 to $519,692.
- Average total package for permanent full-time remuneration by job title – Australia (A$).
- Larry Carter, the recently retired CFO of Cisco Systems, cashed in to the tune of $29 million.
- Alison Harrop FCA, Dexus CFO since 2015, earned A$704,468 (total package A$2,047,915) last year.
CFOs in Tech are awarded equity as part of their compensation packages. For this title, the equity ranges from a low-end of $0-50K/yr to a high of 4%+.
Bonus Babies: The Best
A chief information officer is the company executive responsible for the management and implementation of information and computer technologies. Many CFOs have a decade or more of relevant work experience and often have a Master in Business Administration . Generally, CFOs have held previous positions such as controller or director of finance. Perks of the job can vary but can include the likes of a company car or driver, a hefty severance package—also known as a golden parachute, relocation expenses, use of a private jet or helicopter, and first-class flights. While healthcare is a typical perk, high-level executives such as CFOs have access to disability and life insurance.
Depending on the businesses, the COO may report only to the CEO, or may advise the CFO; any of these officers can also be on the board of directors. A chief financial officer is the senior manager responsible for overseeing the financial activities of an entire company. The average CFO Salary in the banking industry was $133,879 in 2021, according to Ziprecruiter. These figures were derived from online job postings and third-party data sources. In addition to salary, CFOs may also be compensated in stock options, incentive bonuses, and other forms of compensation. In terms of industry, the three most highly-compensated sectors in 2019 were technology, healthcare and industrial goods.
Chief Financial Officer Salary In The United States
In CFO magazine’s 1999 survey, based on information by Buck Consultants, the Bank of America finance chief and vice chairman topped our list of the 25 highest-paid old-economy CFOs. That year, Hance’s expected total direct compensation — defined as salary, bonus, restricted stock, and the value of options granted — was $52 million. Hance’s package included $27 million in option grants, as gauged by the Black-Scholes pricing model, along with $22 million in restricted stock. “The CFO is typically the second most important role in a public company, behind the CEO,” shares AETHOS CEO and New York-based Managing Director Keith Kefgen. The numbers are reported in percentile format and includes cuts at the 25th, 50th and 75th percentiles for each component of compensation.
Compensation For Jobs Within Executive
At such outfits, the end of option grants would hurt rank-and-file employees more than it would senior executives, says Stephen Giusto, CFO of Resources Connection, a professional services firm. If employers start issuing restricted stock rather than options to regular workers, adds Giusto, they would get fewer shares and enjoy less upside potential in their compensation.
Give me an example of a landmark decision that was made in the product strategy, what data informed that decision and your opinion of that decision. As a frame of reference, that median base CFO salary in the US of $362,030 would be $174/hour. 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.
We have seen some that could potentially double a candidate’s base salary. Typically the bonus potential and total earning potential increases as the size of the organization increases. 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. CFOs moving towards a pay for performance compensation model is further evidenced by the average cash versus average equity pay components. From 2010 to 2019, there has been a noticeable increase in the percentage that equity accounts for CFO pay. By placing a heavier emphasis on equity for CFO compensation, executives are incentivized to meet and exceed performance goals.
The 10 Highest Paid Cfos In The United States
He also received non- equity incentive plan compensation worth $2,400,000 and “other” compensation totaling $28,112. However, he has been working with the company for eighteen years, when he joined as the vice president before being promoted to managing director in 1999. A lion’s share of his compensation, like most of the CFOs on this list, came from bonuses and restricted stocks. This was boosted by $11,394,315 worth of restricted stock and $216,816 for “other” compensation. The chief financial officer is an important executive in major companies.
In 2014, his compensation consisted of a $511,250 base salary and $25,500,057 worth of restricted stock awards. In addition, he was given $340,000 compensation for non-equity incentive plan and $510,525 in terms of option awards. Schiller joined Valeant Pharmaceuticals in December 2011 as the company CFO before retiring in June 2015.
Keith Sherin, General ElectricComing in at lucky No. 5 is General Electric’s very own Keith Sherin. He scored a pay package valued at $20.2 million last year and also holds income summary the title of company vice chairman. While Sherin’s salary was significantly higher than the median pay for a CFO, it was still only a third of what our No. 1 CFO made.
The average additional cash compensation for a CFO in Denver is $34,455. CFO salaries are based on responses gathered by Built In from anonymous CFO employees in Denver. In fact, BOA’s board compensation committee amply rewarded executives like Hance for the bank’s stellar 2002 performance. But in a marked shift from previous years, the board tipped the balance of executive pay toward restricted stock and away from stock options. Hance’s $11 million bonus — the biggest bonus in this year’s survey — consisted of $7 million in restricted shares, along with $4 million in cash.
We have put together 100+ of the bestCFOinterview questions so that you can be confident in your hiring decision. Develops financial well-being of the organization by providing financial projections and accounting services, preparing growth plans, and directing staff.