Good morning When the CFO role becomes more complex, the demand for top finance leaders increases.
Therefore, the CFO salaries remain constant because public companies control economic uncertainty. New Data released This morning examined by Compensation Advisory Partners (CAP), a consulting company, 2024 remuneration results for CFOs compared to CEOs. The analysis comprises 155 public companies with medium sales of $ 12.6 billion and financial years, which end between August 31, 2024 and January 1, 2025.
In 2024 the average basic content for CFOs was 4%, while the CEOs did not change a change from 2023. In 2022, the median salary increase in CFOs was 3.8% for CFOs and 2.9% for CEOs.
With the kind approval of compensation consultants
“We expected salary increases to be moved down given the labor market,” said Kelly Malafis, founding partner at CAP. “But the increase in salary should remain constant for CFOs.”
This stability is driven by driven by high sales Due to retirement or drainage and strong demand for financial bosses. The CFO role remains an important leadership position and a strategic partner who, according to CAP, contributes to a higher payment.
Since companies face challenges, such as Cyber security And AI implementationCFOs have become of central importance for these strategies, said Malafis. Organizations are looking for financial chiefs with the skills to cope with this in addition to core financing competence to prepare for the future, she said.
If you look back on 2024, some prominent CFO employees who come to mind include the recruitment of alphabet from Anat Ashkenazi From your CFO role at Eli Lillyto bring you as chief finance chief of the Tech company. Sarah FrarThe former CEO of Nextdoor and ex-CFO from Square changed Openai. Karen Parkhill Was CFO of HPcome from Medtronic. These are just a few remarkable examples.
The analysis of CAP showed that for managers in the data record that received an increase in their salary, the middle increase was 5.7% and 4.1% for CEOs. In the previous year, the middle increase of CFOs was 5% and 5.1% in the previous year. Likewise, CAP does not expect a significant decline in CFO salary increases next year, said Malafis.
A LTI trend
Although CFOs currently have major salary increases as Chief Executives, CEOs still have overall compensation according to CAP data. In the past ten years, the overall remuneration of CFO has an average of around 33% of the remuneration of CEOs, as the company’s research shows. The middle term of office for these positions is typically about seven years, said Roman Bean, director at Cap. “Every time there is a reset, put the bar back back,” he said. “That is why this relationship remains about a third.”
In public companies, long -term incentives (LTIs) are generally supplied for managers through time -limited shares, performance -rated stocks or stock options. “A trend that we have highlighted is the reduction in the number of companies that use all three vehicles,” said Beauta. Five years ago, 33% of the companies surveyed used all three compared to only 22% today.
Performance -based stock plans are still the largest component of LTIs for CFOS and CEOs. The LTI awards rose an average of 7% for CFOS and 5% for CEOs in 2024. In the past ten years, the LTI awards for both roles have grown by an average of 6% annually.
The bonus distributions in 2024 rose by 2.6% for CEOs and 5% for CFOs in 2024. All direct compensation rose for CEOs and 6% for CFOs, which is mainly due to higher long-term incentive awards.
In view of the increase in specialist chiefs according to qualified financial chiefs, the CFO compensation is expected to remain strong.
Ranking
Fortune 500 -Power movements
Jesus “Jay” Malave was appointed EVP and CFO by Boeing ((No. 63) With effect from August 15th, Brian West, who has worked as a Boeing CFO in the past four years, becomes a senior consultant from the Boeing President and CEO Kelly Ortberg. Malave was last CFO from Lockheed Martin and previously held the positions of SVP and CFO at L3Harris Technologies. He spent more than 20 years with the United Technologies Corporation, including Vice President and CFO of the Carrier Corporation, when it was an operational unit of UTC, as well as Vice President and CFO at UTC Aerospace Systems.
Every Friday morning the Weekly Fortune 500 Power Moves Columns Fortune 500 company C-Suite layers–See the latest edition.
More remarkable movements
Pierre Revol was appointed CFO by Frontview Reit, Inc. (NYSE: FVR), effective on July 21. Revol has more than 20 years of experience. Most recently, he worked as a SVP of Capital Markets at Cyrusone. Previously, Revol was at Spirit Realty Capital, Inc., formerly as a publicly traded net lesson, SVP for corporate financing and investor relations.
Marc Grasso was appointed CFO by Kyverna Therapeutics, Inc. (Kyverna, Nasdaq: Kytx), a biopharmaceutical company in the clinical stage, on June 30th. Grasso brings more than 25 years of experience to the company. He succeeds Ryan Jones, who will switch to a strategic advisory role. Most recently, Grasso was the CFO of Alector, Inc. served that he had the position of the CFO and the Chief Business Officer from Kura Oncology.
Big deal
Thomson Reuters, a global content and technology company, published his 2025 Future of Professionals ReportA significant gap between organizations with formal AI strategies and those without.
The report is based on knowledge of 2,275 experts in law, risk, compliance, tax, tax, taxes, examination and global trade. He notes that organizations with a defined AI strategy are twice as likely that they will report the growth of sales from AI and 3.5 times the probability that they will achieve critical AI advantages, about the use of AI strategies, compared to those without significant AI adoption plans.
Despite these advantages, only 22% of those surveyed say that their organizations have a clear AI strategy. As a result, according to Thomson Reuters, many companies can risk returning both returns and competitive growth.
Go deeper
“How private equity companies deal with tariffs” is a report In Wharmon’s Business Journal. Tariff disorders offer private equity investors opportunities to acquire undervalued assets, but also require their dependence on predictable results, according to Whartons Burcu Esmer.
Oversighted
“The future of cooperation is not a person against the machine, but man with Machine – in an open, visible process in which every participant can see, learn, learn and be rated rather. “
– David Ferrucci, Managing Director of the non -profit Institute for Advanced Enterprise AI at the Center for Global Enterprise, writes in a new one Assets Opinion.
