At the top of the proverbial food chain, in the corporate world, is the chief executive officer (CEO). This C-suite role oversees the work of finance directors and controllers who manage and guide the everyday activities of accounting and finance employees. The duties chief financial officers perform can include overseeing investment portfolios, crafting financial reports, developing financial forecasts and tracking expenses.
- In major metropolitan areas and “financial capitals of the world,” such as New York City, the pay will be higher.
- Microsoft CFO Amy Hood earned a salary of $975,000 in 2020, according to the company’s public filings.
- You should also quickly complete any necessary paperwork, such as employee action forms and onboarding documents like I-9 forms, benefits enrollment, and federal and state tax forms.
The majority of Maestri’s compensation is in the form of stock incentives, which were worth over $21 million in 2020. His total compensation for 2020, including retirement benefits and other compensation, was worth $26,253,270. Before you post your chief finance officer job, you should take the time to determine what type of worker your business need. While certain jobs definitely require a full-time employee, it’s sometimes better to find a chief finance officer for hire on a part-time basis or as a contractor.
FAQs About Chief Financial Officer (CFO)s
However, the cost of chief finance officer hiring can vary a lot depending on location. Additionally, hiring a chief finance officer for contract work or on a per-project basis typically costs between $38 and $123 an hour. Chief Financial Officer is responsible for developing an organization’s overall financial policies. Provides strategic direction of all financial functions including accounting, budget, credit, insurance, tax, and treasury. Additionally, Chief Financial Officer may require the Certified Public Accountant (CPA) credential. Typically reports to chief executive officer (CEO) or chief operating officer (COO).
Chief finance officers may want to avoid working in the finance industry as it offers the lowest average salary of $135,581. Location, education, and experience impacts how much a chief finance officer can expect to make. Chief finance officers make the most in California, New Jersey, New York, Nevada, and Massachusetts. Their work is essential to project a favorable company image while saving money in every way possible.
. Writing a Chief Finance Officer Job Description
In major metropolitan areas and “financial capitals of the world,” such as New York City, the pay will be higher. The table below lays out the base compensation and total compensation including annual bonuses for ten major metropolitan areas. To prepare for the new chief finance officer first day, you should share an onboarding schedule with them that covers their first period on the job. You should also quickly complete any necessary paperwork, such as employee action forms and onboarding documents like I-9 forms, benefits enrollment, and federal and state tax forms. Finally, Human Resources needs to make sure that a new employee file is created for internal recordkeeping.
It is essential to consider the cost of chief finance officer recruiting as well the ongoing costs of maintaining the new employee. Reported average annual chief financial officer salaries vary greatly, depending on the source. The Bureau of Labor Statistics reported the 2020 average annual chief executive salary — including all C-suite level employees — at $197,840, with the bottom ten percent earning just over $60,000. CFO salaries vary widely, according to their experience, industry, and the location of the company. In addition, many CFOs take the majority of their compensation in stock options, bonuses, or other variable compensation. A chief financial officer typically holds a bachelor’s degree in a relevant field like accounting, finance, business or economics.
Highest paying states for undefined
Beyond the basics, you should also consider how well a candidate fits into your company culture. In other words, you should think about how your ideal chief finance officer will live by the company’s mission statement and contribute to the team dynamic you already have in place. Companies rely on chief financial officers to make profitable decisions based on their market assessments and financial forecasting abilities. They employ data analysis and strategic thinking to make decisions in the best interest of meeting the business’ financial goals. The average CFO Salary in the banking industry was $133,879 in 2021, according to ZipRecruiter.
According to ZipRecruiter, the average salary for a non-profit CFO is $133,576, based on job postings and third-party data. Microsoft CFO Amy Hood earned a salary of $975,000 in 2020, according to the company’s public filings. In addition, she earned $14,792,679 in stock incentives and $3,734,981 in non-equity compensation. While healthcare is a typical perk, high-level executives such as CFOs have access to disability and life insurance. Workplace-related perks can include a dedicated parking space, large offices, and private bathrooms, among others.
Average chief finance officer salary by state
A chief financial officer (CFO) makes an average annual salary in the low to mid-six figures, with further compensation in the form of stock options. Ideally, you should have the perfect candidate profile in mind before you write a chief finance officer job description. This means you should have a clear idea of the skill set they need to be proficient in, what their main responsibilities will be, and what kind of background they’ll have. The track to becoming a chief financial officer often starts with an entry-level job as an accountant or financial analyst. Next, a professional will take on leadership positions like controller or finance director to further hone their skills and spend time handling management-level responsibilities. The primary factors that impact the median salary of a CFO include geographic location, and the experience and personal qualifications of the person.
They are not necessarily required to have a master’s degree, but some do bring advanced degrees. Professional accounting and finance experience is most important, with a minimum 10 years on the job usually required. CFOs also commonly bring certifications in accounting, auditing or financial management. Chief executive officers (CEOs) typically get paid more in base chief finance officer salary pay than chief financial officers (CFOs), with CFO compensation largely based on variable pay. CEO and CFO salaries vary greatly, depending on organization location, size, and industry. The full compensation package for a chief financial officer depends on a variety of factors, including but not limited to the candidate’s experience and geographic location.
Including a salary range in the job description can help attract top candidates to the position. Additionally, a chief finance officer with certifications may command a higher salary, and working for a well-known company or start-up may also impact an employee’s pay. In fact, our data shows that the construction, manufacturing, and hospitality industries tend to offer much higher salaries for chief finance officers.