Chief Financial Officer (CFO) Salary
Salaries for Chief Financial Officers in the United States are generous, with average pay above six figures ($125K) per year. In the world of Chief Financial Officers, overall cash allowance can occasionally include more than $72K from bonuses and, in some exceptional cases, $46K from profit sharing, causing incomes to vary widely between $69K and $255K. While the particular city and tenure impact pay for this group, the particular firm is the most influential factor. A large number enjoy medical while the greater part get dental coverage. Vision coverage is also available to over one-half. Work is enjoyable for Chief Financial Officers, who typically claim high levels of job satisfaction. Chief Financial Officers who participated in the survey are largely men, dominating at 63 percent. Respondents to the PayScale salary survey provided the data for this report.
Job Description for Chief Financial Officer (CFO)
Chief financial officers (CFOs) oversee the financial operations of their companies and provide leadership and focus to accounting and finance departments to ensure that they operate efficiently and comply with applicable laws and company policies. Their work is essential to project a favorable company image while saving money in every way possible.Read More...
CFOs may oversee departments which are involved in purchasing, pricing, investments, tax, debt management, and accounts payable/receivable; they may oversee all such transactions and record them in books or databases. This information may then be presented in reports to upper management, so strong public speaking and presentation skills are highly beneficial. CFOs must also conduct research and audits to ensure that all departments are following IRS guidelines.
Strong computer skills are important in this position in order to create calculations and reports, and advanced knowledge of accounting, budgeting, and finances is essential. Some travel may occasionally be necessary. A bachelor’s degree in finance or accounting is generally required by employers, and years of prior work experience may also be required. Basic managerial duties relating to hiring, human resources, and employee direction and discipline may also be part of the job.
Chief Financial Officer (CFO) Tasks
- Develop internal control policies, guidelines, and procedures for activities such as budget administration, cash and credit management, and accounting.
- Prepare or direct preparation of financial statements, business activity reports, financial position forecasts, annual budgets, and/or reports required by regulatory agencies.
- Provide leadership and coordination in the administrative, business planning, accounting and budgeting efforts of the company.
Common Career Paths for Chief Financial Officer (CFO)
Chief Financial Officers' salaries may rise greatly for those who assume a higher-end position such as a Chief Executive Officer. The average Chief Executive Officer brings home $170K per year. Career advancement for the typical Chief Financial Officer often leads to becoming a VP of Finance or Chief Financial Officer or a Chief Operating Officer; median salaries in these positions are $11K higher and $4K higher, respectively.
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Popular Employer Salaries for Chief Financial Officer (CFO)
Abc Corp. offers the largest salaries in town — $170K on average.
Popular Skills for Chief Financial Officer (CFO)
Survey participants wield an impressively varied skill set on the job. Most notably, facility with Leadership, Strategic Planning, and Financial Modeling are correlated to pay that is significantly above average, leading to increases of 42 percent, 23 percent, and 12 percent, respectively. Those listing General Ledger Accounting as a skill should be prepared for drastically lower pay. Human Resources and Budgeting also typically command lower compensation. Most people skilled in Financial Analysis are similarly competent in Senior Financial Management and Accounting.
Pay by Experience Level for Chief Financial Officer (CFO)
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For many Chief Financial Officers, experience and pay levels seem to be correlated; more years in the business generally lead to more money. Professionals with less than five years' experience earn a median of $94K annually, but folks with five to 10 years under their belts report a weighty six-figure median of $113K. Chief Financial Officers claiming one to two decades of experience make an estimated median of $140K. Individuals who report more than two decades of experience seem to make only slightly more than folks in the 10-to-20 year range; the more senior group sees median earnings in the comparatively modest ballpark of $153K.
Pay Difference by Location
For Chief Financial Officers, busy New York offers a higher-than-average pay rate, 50 percent above the national average. Chief Financial Officers will also find cushy salaries in San Francisco (+36 percent), Chicago (+35 percent), Los Angeles (+35 percent), and Boston (+33 percent). With compensation 8 percent below the national average, Portland is not known for hefty paychecks and actually represents the lowest-paying market.
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