Introduction
Salary.com reports that the median compensation for a chief financial officer (CFO) was $393,377 per year in the U.S. as of May 2021. In the worst 25th percentile, CFOs can assume to earn $299,442 per year, while those in the highest 75th percentile can expect to earn $499,992 per year, according to Payscale.
Bureau of Labor Statistics data from June 2021 shows a U.S. median weekly wage of $984, or $51,168 a year. As a result, the average CFO Salary earns roughly eight times more than the average worker, making the CFO position particularly lucrative.
Highlights
- The Chief Financial Officer, or CFO, is an important executive for modern-day organizations. The CFO salary supervises corporate financial and accounting statements.
- The typical yearly CFO pay in the United States was $393,377, according to Salary.com.
- CFO salaries vary widely depending on their expertise, the size and type of firm, and the city in which it is located.
- On average, CFOs make nearly eight times as much as the company’s employees.
What are the Salary and Benefits Perks of the CFO?
Geographic location, experience, and personal credentials are the key elements that influence the typical income.
About 80% of a CFO’s entire compensation should come from base salary and bonuses over a year. As well as perks and bonuses, additional forms of payment include commissions, commissions, and bonuses.
A CFO’s overall remuneration is $541,930 per year, including bonuses. Thus, anyone earning less than $375,642 a year should expect to earn $792,957 each year for those in the 75th percentile.
Benefits for CFOs also include Social Security, a 401(k), disability, healthcare, a pension, and vacation. About 20 percent of the average CFO’s total remuneration is comprised of these benefits and perks.
Aside from a business car or driver, perks of the job can include relocation fees and the use of a private plane or helicopter, as well as first-class travel. In addition, employee perks might range from free parking to spacious offices to private facilities.
Pay differs not just based on experience but also based on the job location. New York City, for example, is one of the world’s “financial capitals,” thus the salary will be greater. Ten large metropolitan areas are included in the table below.
What does it Take to Become CFO?
People who work as chief financial officers often have at least ten years of relevant experience and a Master of Business Administration degree (MBA).
Sometimes, the Chief Financial Officer (CFO) will also be a CPA (CPA). They have typically held jobs like controller or director of finance before becoming chief financial officers (CFOs). Some of them may have worked in accounting departments in the past.
According to Salary.com, most CFOs have a master’s degree, Salary.com, while 45 percent have a bachelor’s degree.
While just 2 percent of cfo salary have a doctorate or associate’s degree, 1 percent of CFOs have only a high school education.
Regarding compensation, there is little difference between CFOs who have bachelor’s degrees and those who have master’s degrees.
In the corporate world, the CEO is at the top of the food chain (CEO). To the CEO and board of directors, a CFO usually reports, in general, directly. In addition to cfo salary, bonuses and benefits, the average CEO earns $771,165 annually.
CFO Outlook
This includes budgeting and financial goal setting, as well as the preparation of financial statements. Unfortunately, even though CFOs have been needed since the 1960s, they are not widely known. As a result, accounting and bookkeeping for firms have gotten increasingly complex.
There will be an increase in senior executive occupations by 4% from 2019 to 2029, according to the Bureau of Labor Statistics (BLS). 8 There will be several changes in the CFO profession during the next decade, including the rise of cyber security and technological advancements.
There will be an increase in demand for the CFO job due to rising regulatory compliance requirements. So if you’re going to take chances, you’d better be prepared to manage them.
The role of a CFO will include managing finances and controlling banking connections and managing big data, adopting artificial intelligence, and data analytics.
Conclusion
Every person can make out the things in an enhanced manner for management of things as chief officer. Here you can surely check out for paying positions on the CFO salary scale.
Comments