2007 Financial Executives
Compensation Survey
Cheryl Graziano
Vice President of Research and Operations
Financial Executives Research Foundation
Financial Executives Research
Foundation (FERF)
• Who we are:
– The independent research affiliate of FEI.
• What we do:
– Help members learn from other members.
• How we do it:
– Tax-deductible contributions from
corporations, FEI chapters and individuals.
– Research publication sales/subscriptions
Financial Executives Research
Foundation (FERF)
What we offer:
– We help FEI members learn from other members
– Financial Executives List Exchange (FELIX) – ask your peers
about topics such as Internal Control Procedures, Tax
Preparation and Audit Fees for Private Companies, FAS
123R, Asia and China Telecom Challenges, and more
– Research Forum Newsletter
– Financial Executive magazine articles
– Research reports, alerts, surveys
– Continuing professional education credits
– All accessible from the FEI website as part of FEI
membership
The Survey
• Electronic survey e-mailed to 9,062 active FEI
members
• Members were asked 27 questions in five key areas:
–
–
–
–
–
Demographics,
Compensation,
Long-Term Incentives,
Retirement Benefits, and
Other Compensation Benefits.
• 1,844 members responded (20% response
rate
Respondent Profile
Respondent Profile - Title and Company Type
Number of Responses by Company Type
Title
Corporate CFO
VP Finance
Corporate Controller
Treasurer
Divisional/Geographic/Regional
CFO
Divisional/Geographic/Regional
Controller
Other, please specify
Grand Total
Nonprofit
Government
Grand
Total
Public
Private
306
89
125
43
554
87
97
19
41
8
5
3
64
15
4
83
41
12
2
55
174
123
13
2
842
907
76
19
46%
49%
4%
1%
15
1
1
916
185
228
65
312
1,844
100%
50%
10%
12%
4%
5%
3%
17%
100%
Industry and
Location of Company Headquarters
• Almost one third (32% or 598) of the responses came
from members from three industries:
Banking/Financial Services, Manufacturing and
Technology.
• Many responses (42% or 771) came from members
who worked for companies headquartered in:
–
–
–
–
–
California (15% or 275),
Illinois (6% or 110),
Massachusetts (7% or 121),
New York (6% or 110), and
Texas (8% or 155).
Private Company Titles
VP Finance 10%
Treasurer
2%
Other 14%
Divisional Controller 1%
Divisional CFO 2%
Corporate
CFO
60%
Corporate Controller 11%
907 responses = 49% total
Bu
dg
H
et
um
in
an
g
re
so
ur
ce
s
In
In
te
fo
r
na
rm
la
at
io
ud
n
it
Te
ch
no
lo
Ad
gy
m
in
R
is
is
tra
k
m
ti o
an
n
R
ag
e
al
em
es
en
ta
ta
te
nd
in
O
su
th
ra
er
nc
-In
e
di
ca
te
ar
ea
Ta
x
y
Ac
an
co
d
un
fi n
tin
an
g
ce
an
d
re
po
rti
ng
Tr
ea
su
r
Private Company Job Responsibilities
90% 92%
88%
78%
76%
59%
44%
37%
46%
45%
24%
Private Company CFO
• Compensation proportionate to the
annual revenues of their employers
• Median annual base salary is in the
$176,000 to $200,000 range
• Median annual bonus target is between
31 and 40% of base salary
• CFO oversees a median of 10-50
finance/accounting employees or FTEs
• 554 responses
Private Company – CFO “Direct Reports”
Median Compensation
• Corporate and Divisional Controllers
$100,000 – 125,000
• VP Finance and Divisional CFO
$126,000 to $150,000
• Treasurer $151,000 – 175,000
• PLUS ++ Annual Bonus Target of 21-30%
Private Company Financial Executives
California
• CFO state median = national median
– Annual base salary range $176,000 to
$200,000 plus 31 and 40% bonus (78 CFOs)
• Other titles state medians > national
medians
– Corporate Controllers at $126 to 150K salary
– VP Finance at $151 to 175K salary
Public Company Titles
VP Finance 11%
Divisional Controller
5%
35%
Other
Corporate
CFO
21%
Treasurer 5%
8%
Divisional
CFO
15%
Corporate
Controller
842 responses = 46% total
Public Company Job Responsibilities
82%
70%
61%
52%
45%
34%
32%
25%
23%
15%
e
Tr
a
ry
su
d
an
c
Ac
fi
nc
na
i
nt
ou
ng
e
d
an
re
n
rt i
o
p
g
x
Ta
Bu
dg
es
ing
et
m
Hu
an
r
rc
ou
s
e
dit
u
a
l
ch
na
r
te
e
t
In
ion
at
rm
fo
In
lo
no
gy
ini
dm
ion
at
str
A
sk
Ri
an
m
al
Re
e
em
g
a
e
te
sta
a
nt
nd
u
ins
nc
ra
e
Public Company CFO
• Compensation proportionate to the
annual revenues of their employers
• Median annual base salary is in the
$251,000 to $275,000 range
• Median annual bonus target is between
41 and 50% of base salary
• CFO oversees median of 10-50
finance/accounting employees or FTEs
Public Company – CFO “Direct Reports”
Median Compensation
• VP Finance, Corporate Controller,
Divisional CFO all earn $176,000 to
$200,000 PLUS ++ Annual Bonus Target
of 31-40%
• Treasurer $176,000 to $200,000 PLUS
Bonus of 41-50%
• Divisional Controller $126,000 to
$150,000 PLUS Bonus of 21-30%
Public Company Financial Executives
California
• CFO state median = national median
– Annual base salary range $251,000 to $275,000
plus bonus between 41 and 50% (56 CFOs)
• Other titles state medians > national medians
– Corporate Controllers at $176 to 200K salary
– VP Finance at $226 to 250K salary
Long Term Incentives
• 409 members (split between public and
private companies) receive cashbased awards
• 1,096 received stock-based awards
– 665 based on fixed number of shares in
options or restricted units
– 309 also get dividends
Retirement and Other Perks
• 384 are eligible for defined benefit plan (60%
from public cos.)
• 148 have supplemental db plan
• 171 have supplemental defined contribution
plan
• Most popular perk: Company car or car
allowance (578 responses or 34%)
• Most popular employment contract provision:
Change-in-control/severance (604 or 35%)
Questions?
• Suggestions for follow research on this
project?
• Suggestions for other types of research?
Stay in Touch
Cheryl Graziano
Vice President
Research and Operations
FERF
(973) 765-1064
cgraziano@fei.org