Benefits May 29, 2008

CFO Pay Gets Boost in 2007

May 29, 2008 (PLANSPONSOR.com) - Median chief financial officer (CFO) pay increased by 5.2% to $2.9 million from 2006 to 2007, according to Equilar, an executive compensation consultant.
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An Equilar news release said overall CFO pay increased despite a 3.4% retreat in median bonus payouts, but were buoyed by an 8.2% increase in median total equity compensation.In 2007, S&P 500 CFOs received a median aggregate bonus of $576,880, down from the median of $597,263 in 2006.

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Additionally, the prevalence of CFOs receiving bonus compensation fell from 99% in 2006 to 93.6% in 2007, Equilar said.

According to the study, the median base salary for S&P 500 CFOs increased by 9.1%, from $481,250 to $525,000 from 2006 to 2007.

The executive compensation study covered 313 S&P 500 CFOs in place for at least two years.

For companies disclosing two consecutive years of compensation data under the new Securities and Exchange Commission disclosure rules trends included:

  • Among S&P 500 CFOs receiving discretionary bonuses, the median value of payouts fell by 2.7% from 2006 to 2007. Similarly, the prevalence of discretionary payouts declined from 29.7% in 2006 to 26.2% in 2007.
  • In 2007, S&P 500 CFOs received a median annual cash bonus of $455,571. This amount was 2% less than the median annual cash bonus of $465,000 in 2006.
  • Among S&P 500 CFOs in long-term incentive plans, the median value of long-term cash bonus payouts rose by 16.7% from 2006 to 2007, to a median of $455,571 in 2007, versus $390,229 in 2006.
  • From 2006 to 2007, the total value of equity awards for S&P 500 CFOs increased 8.2%, from a median of $1,408,804 in 2006 to a median of $1,523,810 in 2007.
  • In 2007, CFOs at S&P 500 companies received stock awards with a median value of $785,970 an increase of 16.1% over the median grant of $676,807 in 2006.
  • Contrary to trends observed for chief executives, from 2006 to 2007, the median value of S&P 500 CFO option awards increased by 7%.
  • In 2007, the median value of accumulated pension benefits for S&P 500 CFOs was $1,061,198, an increase of 17.7% over the median of $901,524 in 2006.
  • The median value of deferred compensation plan balances increased by 21.3% from 2006 to 2007, climbing to $779,388.

To learn more about these findings, please visit www.equilar.com or call 1-877-441-6090.

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