CAP’s study on CFO pay trends (conducted by Partner Kelly Malafis, Principal Roman Beleuta and Associate Louisa Haywood) was cited in a recent article for Becker’s Hospital Review. The article discussed 5 takeaways from CAP’s report: (1) Nearly three in four CFOs and half of CEOs received base salary increases; (2) The median change in base salary held steady for CFOs, while increases were flat for CEOs; (3) Long-term incentive awards increased at a higher rate than last year; (4) Total cash compensation in healthcare aligned with industries; (5) Amid compensation trends, CFO turnover remains higher than CEO turnover.
A CAP report was referenced when discussing CEO and CFO compensation in the fiscal year 2020. The report revealed that base salary adjustments are around 10 percent lower than previous years for both positions while lower bonus payouts are prevalent amongst about half of the companies included in the report. CFO total compensation proved to be around one third of CEO compensation, like past years and overall long-term incentive mix moved about 5 percent towards time-based equity when compared to 2019.