CFO compensation can vary widely across the board. How do your earnings compare?
Finance executives have been frequently called out on their high earnings, especially during the hard times of the recession. Investors often challenge why CFO compensation has appeared to increase substantially in recent years, and according to many firms, the answer lies in the SEC’s new annual proxy reporting requirements.
Determining an appropriate CFO pay package requires careful deliberation that considers both the job’s market value and the CFO’s personal equity. However, many women are finding that their salaries are not measured so fairly, as male CFOs are earning 16.3% more on average.
In the executive suite, CFOs are actually getting more pay increases than CEOs – as much as 3.9% more in 2007. This gap likely reflects increased CFO prominence, but may also result from differences in long-term incentives. And while CFOs may be please with their rising salaries, they will likely have issues with new auditing standards and their payroll tax responsibilities.
CFO paychecks are certainly a delicate topic in the financial world, but we hope you enjoy reading this CFO eBook to determine where you stand in relation to the compensation debate.
Topics covered in this CFO eBook include:
- How SEC annual proxy reporting affects the perception of CFOs’ earnings
- How to evaluate a CFO compensation
- How to increase your compensation by switching firms
- The gap between CFO and CEO salaries
- Tax implications on executive earnings