The CAP report authored by Principal Ryan Colucci was recently referred to again in an article by CFO Dive. The compensation data in the study authored by Colucci reflects S&P 1500 companies that have fiscal year ends between 9/30 and 11/30. Colucci shares that the CFO role has increased in importance in the past years and because of this, it lends itself to more movement. He does not anticipate the increases slowing down and believes the pace of transitions will probably keep up for this year.
In this article, CFO Dive referenced a report CAP published on CFO pay. CAP’s report looks at compensation outcomes for CFOs relative to CEOs among 130 companies. These companies have a median revenue of $14 billion. CAP’s research found that the median 2021 increases in total compensation were 17% for CFOs relative to 18% for CEOs. In comparison, there was only a 4% and 3% increase, respectively, in 2020.
Principal Roman Beleuta discussed a survey conducted by CAP revealing that approximate CFO pay is roughly one-third of CEO pay, a drop from last year’s survey. However, CFO salary increases continue to outnumber those of CEOs, a consistent trend for multiple of years now. He reveals how CEO salary increases are less prominent due to more of a focus on incentive-based raises to align with performance and shareholder interest.
CAP’s recent study on CFO compensation concluded that, while overall pay increased for CFOs, actual bonus payouts dipped as a result of slowed financial performance in 2019 compared to previous years.