CFOs in this industry saw their pay rates increase 18%
Is your industry upping its pay for CFOs? Finance chiefs in four major business sectors have seen their pay rates climb faster than other C-level executives. In fact, in one industry, CFOs’ pay shot up 18% last year.
In 2012, CFOs in the real estate, banking, energy and retail sectors experienced a jump in pay from 6% to 18% of their previous salaries, a study by accounting and consulting firm BDO USA LLP found. Meanwhile, CEOs in those same industries saw a change in their pay anywhere from -1% to 11%.
The study examined changes in executives’ salaries across nine major sectors of business from 2011 to 2012. Most CFOs enjoyed increases, but a couple industries didn’t fare so well.
Healthcare and manufacturing CFOs actually experienced a decrease in average salary, with manufacturing plummeting -12%.
On the other hand, energy and banking CFO salaries jumped up 14% and 18%, respectively, while CEO salaries in the same sectors raised 11% and 10%.
More than just finance
CFOs have been expanding their responsibilities in the past few years, which the study cited as a possible reason for the large increases in pay. Many CFOs now help CEOs with broader business strategies like managing acquisitions.
CFOs are no longer just the numbers guys. And those new responsibilities are reflected in their pay checks.
Even with new roles and responsibilities, CFOs still have a long way to go before their salaries will catch up with those of CEOs. On average, CFOs made only 40% of what CEOs took home, the study found.
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