In major metropolitan areas and “financial capitals of the world,” such as New York City, the pay will be higher. The table below lays out the base compensation and total compensation including annual bonuses for ten major metropolitan areas. The track to becoming a chief financial officer often starts with an entry-level job as an accountant or financial analyst. Next, a professional will take on leadership positions like controller or finance director to further hone their skills and spend time handling management-level responsibilities. Unable to match the salaries offered by larger firms, startups tend to provide more substantial equity grants to lure in CFO talent.

Negotiating compensation is a critical aspect of any CFO’s career progression. This trend reflects a shift cfo full form salary towards long-term incentives over fixed and short-term compensation. For instance, the communication services sector saw a substantial surge in median pay, while other sectors like consumer cyclical and basic materials witnessed declines. This stability suggests a cautious approach to CFO compensation amid economic uncertainties. Equity stakes and the types of equity plans offered can differ significantly among organizations. Identifying and mitigating financial risks, ensuring compliance with financial regulations, and managing investments.

Expand Your Chief Financial Officer (CFO) Career Opportunities

It’s important to consider the median base CFO salary when evaluating these numbers. As of December 01, 2024, the average annual pay of CFO in the United States is $447,800. While Salary.com is seeing that CFO salary in the US can go up to $698,833 or down to $238,988, but most earn between $338,500 and $579,200. Salary.com shows the average base salary (core compensation), as well as the average total cash compensation for the job of CFO in the United States.

The role of chief financial officer is steadily increasing in importance, and is often second only to that of the CEO. There’s greater emphasis on strategic decision making, rather than simple accounting tasks, and a new focus on environmental, social and governance functions. Company size has been defined based on annual revenue, which is a common metric used to categorize companies into different size segments. We provide tailored guidance to help you maximize your earning potential and career growth. Research market rates, leverage experience, consider the entire compensation package, and be prepared to walk away. CFOs often receive bonuses, stock options, long-term incentive plans, and other benefits.

CFOs have transformed into strategic planners and partners, offering vital industry insights and risk evaluation abilities. They are visionaries who look towards the future, working closely with top leadership and providing strategic recommendations. CFO compensation is a mix of cash and stock, which can be influenced by several factors, such as company size, industry, and geographical location. The CFO provides strategic direction of all financial functions including accounting, budget, credit, insurance, tax, and treasury. Being a CFO typically reports to Chief Executive Officer or Chief Operating Officer.

CFOs have likely worked in one or several areas within finance earlier in their career. CFOs oversee financial planning, implement and enforce financial policies and practices, and report to fellow executives about organizational financial activities. According to ZipRecruiter, the average salary for a non-profit CFO is $259,938 in the U.S. based on job postings and third-party data. Apple (AAPL) CFO Luca Maestri earns an annual salary of $1 million according to executive compensation tables in the company’s public filings with the Securities and Exchange Commission (SEC). CFOs will, of course, need to work their way up to the position, and most are appointed internally.

Is a CFO an Accountant?

The role of the CFO has evolved from being a mere financial overseer to a strategic partner to the CEO, playing a crucial role in shaping the company’s strategy and direction. The Chief Financial Officer (CFO) is a senior executive responsible for managing the financial actions of a company. Larger companies often have more resources and a greater ability to pay higher salaries, bonuses, and other forms of compensation. However, the role has evolved to encompass a broader range of duties, making the CFO a key player in shaping the company’s strategic direction.

This trend indicates a positive trajectory in CFO compensation, with salary increases generally larger for CFOs compared to CEOs. LTIPs are designed to reward CFOs for achieving long-term company goals, often tied to total shareholder return or financial performance metrics. This structure is essential to attract top talent who can drive the company’s financial strategy towards growth. In medium-sized companies, CFOs are more involved in strategic planning and may need to deal with more complex financial structures and reporting requirements. For example, the average salary for a CFO in companies bringing in between $50 million and $999 million is between $170,000 and $450,000.

What Is the Average Salary for a CFO Working for a Non-Profit?

1. The Bureau of Labor Statistics (BLS) predicts the job outlook for financial managers to grow 16% between 2022 and 2032.
2. The role of the CFO has evolved from being a mere financial overseer to a strategic partner to the CEO, playing a crucial role in shaping the company’s strategy and direction.
3. Featured or trusted partner programs and all school search, finder, or match results are for schools that compensate us.
4. He went from the VP of accounting to the CEO of the steel mill, and ended up growing the company from one U.S. plant to three U.S. plants and three South American plants.
5. As the size of a company increases, so does the complexity of its financial operations and the scope of the CFO’s responsibilities.

When he talked to the board of directors about his ideas for turning it around, they elevated him to CEO. Before he took the lead, there was a very tense animosity between management and the union. From a young age I was intrigued by being able to find answers to questions by analyzing data. According to the BLS, the main employers of chief executives in 2020 were private companies and enterprises, local governments, and computer system and design companies.

What Is the Average CFO Salary in the Banking Industry?

Applying the information found here can help you make more informed career decisions, improve negotiation outcomes, and better align a CFO’s compensation and their value to the company. As the role of the CFO continues to evolve, staying informed about compensation trends will be crucial for both individuals and companies alike. The role of the CFO is continually evolving, with an increasing emphasis on strategic decision-making and business leadership. Understanding how to navigate these discussions can significantly impact your financial package and career trajectory. Companies may continue to adjust their compensation structures to balance short-term financial challenges with long-term strategic goals. Stock grants have become more prevalent in executive compensation, with stock-based compensation rising by 9.7% since 2018.