If you’re looking for multi-million dollar bonuses, you’ll find them when taking the finance helm at the largest corporations. For example, Paypal’s new CFO, Blake Jorgensen, received a $6 million sign-on bonus. Tyson Foods, Inc. paid CFO Stewart Glendinning a $1.7 million bonus in 2021. Combined with stock awards and retention bonuses, his pay increased 34%. Walgreen’s Boots Alliance CFO James Kehoe took home a 1.9 million cash bonus in 2021, doubling his 2020 bonus.
In many instances, CFO pay has outpaced the current inflation rate of 8.5% in 2022.
These bonuses and CFO pay jumps depend largely on company success. Net sales and adjusted earnings per share can impact the bottom line. So does free cash flow.
Ultimately, CFO pay jumps align with success in meeting company dashboards’ metrics. These dashboard metrics can include financial goals, but they also are likely to have the CFO’s efforts in supporting other initiatives, such as diversity/equity/inclusion.
What Drives CFO Pay Jumps
The day-to-day responsibilities of a CFO vary according to company, size, location, and industry. CFO compensation consists of base pay, options grants, and long-term incentive pay.
When considering a CFO position, look closely at:
- industry projections,
- the company’s annual revenues,
- headquarters location,
- private/public status,
- stock incentives and share prices and
- the interval payout schedule.
Healthy retirement packages also can sweeten the deal.
Other CFO Compensation Considerations
Companies of all sizes face intense wage scrutiny in an uncertain market, and revenue impacts salary and bonuses. Here are some considerations when exploring the CFO position:
- The median base salary for CFOs in 2020 and 2021 was $700,000; the average base pay was $414,000. Higher-end salaries are usually concentrated in metropolitan cities or companies with over 100 employees.
- Men make approximately 13% more than women in the same role.
- CFO pay increases are not equitable from country to country. The highest CFO pay jumps happened in the US (16%), Germany (21%), and France (15%). On the other hand, CFOs in the UK averaged a 1% increase in salary.
- Projections indicate that C-suite salaries will increase by 4.4% in 2022; Inflation may be a driving factor.
Hefty CFO pay jumps that stay ahead of Inflation can excite candidates about the possibility of taking on more responsibility. Steering a company toward building the solid financial foundation necessary for growth in a highly competitive market is not for the faint-hearted.
If you have strong leadership and communication skills in the finance industry, it may be time to consider a CFO position, whether it’s a new role for you or you’re ready to switch companies. By working with a recruiter, you’ll be more like to find a company with a philosophy matching yours, one where you both can grow and reap financial benefits.
We know the best talent in the field and we know the marketplace. Make your next hire a great one by leveraging our knowledge and experience. Contact us to make your next move.