The estimated average base salary increase of all respondents is 3% – an increase from the 2.1% reported in 2010. Only a third (34%) of respondents report not receiving a salary increase in 2011, compared with 57% of respondents who experienced a pay freeze in 2010. Similar to the previous year, the base salaries of public and private company CFOs remain proportionate to companies’ annual revenues.
According to a press release, for public company CFOs, the average base salary for 2011 is $277,400, a decrease from the prior year’s survey ($285,000). After factoring in bonuses and long-term cash incentives, the average total cash compensation is $443,800. Adding stock-based compensation, retirement and perquisites, the average total compensation is $673,831.
More than two thirds of public company CFOs report receiving an annual bonus. While bonuses for public company CFOs vary across the board, nearly 5% of respondents report a bonus that exceeds 100% of their base salary.
For private company CFOs, the average base salary for 2011 is $206,900, an increase from the prior year’s survey ($204,800). After factoring in bonuses and long-term cash incentives, the average total cash compensation is $287,382. Adding stock-based compensation, retirement and perquisites, the average total compensation is $316,638.
Seventy-four percent of private company CFOs report receiving an annual bonus. Bonuses for private company CFOs also varied across the board.
A quarter of respondents report receiving a long-term cash incentive (based on other calculations, phantom shares or phantom equity rights, or in the form of deferred compensation), a slight decrease from the previous year (27%). More than half (52%) receive some form of stock-based incentive compensation, with the most cited type of award being stock options (39%), followed closely by restricted stock/units (27%).Public and private company respondents most commonly use company goals and objectives as the performance measure to determine annual compensation. Twenty-six percent of public company respondents and 19% of private company respondents indicate they use discretionary performance measures to determine compensation.
Other than Compensation…
Three out of four (75%) of financial executives responding to a survey by Financial Executives Research Foundation (FERF) participate in a defined-contribution plan with a matching contribution from their employer, remaining relatively consistent with the amount that participated in the previous year (76%). The average employer match is 4% for both public and private companies.
The majority of financial executives surveyed (69%) stated that they do not participate in defined benefit plans, or their companies do not have a plan.
The number of executives who do not receive additional retirement benefits increased to 84% (compared with 79% in 2010).
The percentage of respondents who receive perquisites remains consistent with prior years, with cell phones as the most common benefit for the fifth consecutive year (78%).More information is at http://www.financialexecutives.org.