Salaries Increase for Financial Execs as Talent War Looms
While employers across the board project average pay increases of 3.1 percent, the Grant Thornton/FERF survey results include a note of caution: With a battle for talent likely looming, it might be more than pay that wins the war for financial executives.
Jun. 13, 2016
Pay increases for the finance wing of the C-suite rose at a healthy 4 percent, according to the Financial Executive Compensation Survey 2016 issued by Grant Thornton LLP and the Financial Executives Research Foundation (FERF).
While employers across the board project average pay increases of 3.1 percent (according to the WorldatWork 2015-2016 Salary Budget Survey), the Grant Thornton/FERF survey results include a note of caution: With a battle for talent likely looming, it might be more than pay that wins the war for financial executives.
“The demand for experienced financial and accounting executives is stronger than it has been in several years,” stated Ken Troy, a director in Grant Thornton’s Compensation and Benefits Consulting practice. “Companies need to pay attention to changes in the competitive market for talent. They also need to have a clear strategy that defines how they will best attract and retain the executives in these key roles.”
Highlights from the full report include compensation data for numerous top financial positions. Among the findings, chief financial officers at public companies report an average base salary of $303,975 and $229,895 for the corporate controller position. Their counterparts in private companies report lower average base salaries: $217,509 for the chief financial officer and $161,374 for the corporate controller.
Ken Cameron, a director in the Compensation and Benefits Consulting practice, articulated the need for a total compensation program that goes beyond pay alone. “Especially as the economy strengthens, organizations – both public and private – need to have reward systems that are clearly defined, appropriately designed, and take into consideration more than just base pay. If companies can’t include stock, they need to know if long-term cash bonuses make sense. If they can’t create a compelling cash compensation offering, they can look at changes to their benefits programs such as 401(k) matches to make up the difference. Organizations should also consider the positive impact of addressing culture issues as well.”
The report also found 90 percent of executives at public companies are eligible to receive some form of long-term incentives, while of their counterparts at private companies, only 36 percent are eligible.
To read the full survey findings, download the complete 2016 report.