How much does a CFO make?
As stated above, a CFO can expect a salary between $130,000 and $300,000, usually making them one of the highest paid individuals at a company. This lucrative salary makes sense, because a CFO has such an impact on the financial success of the company, and requires a lot of education, experience, and dedication. Still, that range is very wide… so what determines a specific CFO’s salary?
Education: Around half of CFOs have an MBA (Master’s of Business Administration), and most have an undergraduate degree in accounting or finance. CFOs with CPA certification are often preferred, and can make more money.
Experience: Typically a CFO will have 10-15 years of financial experience (more experience = more money), and may have some financial management in their background. For example, a controller may be an excellent choice for a promotion to CFO, and will earn more than a CFO with no financial management experience.
Company details: Publicly traded companies usually pay their CFOs more money (up to $50,000 more per year), because the job requires more reporting and shareholder relations. Larger companies tend to pay more, as do those in financial and global markets.
Benefits & perks: Some companies consider salary to be just one of the components of a compensation package. Bonuses, revenue sharing, stock options, increased health benefits, and even perks like a company car, private bathroom, and parking spaces (or the lack of these benefits & perks) may be a significant part of the negotiating process for a CFO salary. www.hirecfo.com reports that bonuses can be between 30-60% of a CFOs base salary!
