Finance professionals experienced an average salary increase of 3.6% in 2004 compared to an average of 3.5% for all professional workers. Overall, the a verage total compensation for financial professionals rose to $96,000 this past year, according to the Association for Financial Professionals (AFP) 2004 Compensation Survey.
Across all financial job titles in 2004, the Bethesda, Maryland-based organization found Chief Financial Officers (CFO) received the largest compensation packages, with a salary of $171,000, and a bonus of $68,700. VP of Finance posts had an average base salary of $150,700 and a bonus of $46,000; Treasurers had a base salary of $138,800 and a bonus of $42,700 and Assistant Treasurers had a salary of $111,400 and a bonus of $25,700.
Bonuses were up across the finance department as companies were rewarding employees for good performance in 2003. Overall, half of the organizations surveyed by AFP base bonuses on company profits, directly linking pay to performance. On average, executives receive bonuses equal to 33% of their base salary.
“In an effort to retain top performers, many companies have implemented diversified compensation structures. Employers are willing to provide strong incentives to managers who effectively enhance customer satisfaction and corporate responsibility” said Jim Kaitz, AFP’s president and CEO.
The increases were far from uniform and depend on a number of factors. AFP found CFOs who work in the utility industry received salaries of $260,000, while CFOs who work in the government or non-profit industry received average pay at $131,200. Financial professionals in companies with revenues greater than $1 billion earned compensation of $44,000 more than their peers at companies with revenues less than $100 million. Also, public companies compensate higher than private companies. The average salary for financial staff in public companies was $29,100 higher than in private companies.
In addition to salary increases, AFP found finance departments moved into positions of prominence within many companies. For example, CFOs served as business advisors and shaped decisions, while treasurers and other financial managers delivered strategic objectives, anticipated emerging needs and developed creative solutions to business problems.
The report contains salary information for 24 positions, 24 job descriptions and 54 organizational charts. The complete 161-page report is available for purchase at www.AFPonline.org/AFPstore .