A new report from accounting and consulting firm BDO USA LLP reveals that the salary for Chief Financial Officers across the nation is growing substantially faster than the pay rates for CEOs, particularly in mid-sized companies. But how much of a pay raise are CFOs experiencing? The average raise for a CFO ranges anywhere from 6 to 18 percent, while CEOs in those same companies saw an average change from -1 to +11 percent.
These averages come from a survey of over 600 companies in a wide spectrum of industries, revealing a startling trend, especially in the financial sector. The reality is that as the economic recovery continues its sluggish climb upwards, CFOs are pushing for stronger performance from the company, their financial teams, and ultimately themselves, thereby earning higher salaries.
While this trend is spreading quickly through mid-size companies, even major corporations are feeling the impact. Apple, for instance, awarded CFO Peter Oppenheimer with an annual salary of $68.6 million, while CEO Tim Cook earns $4.2 million a year. The discrepancy is a staggering reminder of the important roles that CFOs play in any business and how they’re being appropriately compensated for their work.
Tips for Negotiating Your Salary
If you want to negotiate a higher salary after learning about this trend, you’re not alone. Many business and finance professionals consistently look for ways to bump their pay grade and strengthen their compensation packages. To negotiate salary when the time is right, CFOs must:
- Focus on numbers. As the Chief Financial Officer, perhaps the largest advantage you have is your ability to gather data and analyze it. By showcasing your value and worth to the company through hard figures, you’ll have an easier time negotiating salary when the time comes. It’s all about framing your value as an asset to the company.
- Remember the perks. Even if it isn’t a flat-out pay raise, remember that the benefits package can be strengthened as well to mirror your strong work performance.
- Be reasonable. While everyone wants a pay increase, it’s important to be reasonable with your employer as well. Remember, even if your requests aren’t met, you still have to come into work tomorrow; it’s important to remain as levelheaded as possible.