Financial executivecompensation survey 2013SPONSORED BY GRANT THORNTON
Contents	 1	 Executive summary	3	 Survey participant information				 4	 Overall survey findings			 6	 Public and private c...
Financial executive compensation survey 1How does your total compensation package and that of yourstaff stack up against y...
2 Financial executive compensation surveyBenefits and perquisitesConsistent with last year’s results, the average employer...
Financial executive compensation survey 3Data used in the compilation of this research report wascollected from responses ...
4 Financial executive compensation surveySalary increasesThe number of executives who received a salary increasedecreased ...
Financial executive compensation survey 5OtherMost respondents (63%) are not covered by an employmentcontract. For those e...
6 Financial executive compensation surveyOverviewA total of 160 responses were received from financial executivesfrom publ...
The second table below shows the performance measuresused in determining the long-term incentive compensation (cash,stock-...
8 Financial executive compensation surveyCorporate CFO, public and private company comparisonFor public company corporate ...
Financial executive compensation survey 9	 Public and private company CFO compensation iscompared in the following table.T...
10 Financial executive compensation surveyCFO compensation by revenue rangeBase salary — all responsesLess than$100 millio...
Financial executive compensation survey 11Corporate controller, public and private company comparisonThe average base sala...
12 Financial executive compensation survey	 The median base salary ranges of public and privatecompany controllers are als...
Financial executive compensation survey 13	 The two tables below illustrate corporate controllers’ basesalaries and total ...
14 Financial executive compensation surveyVP finance, public and private company comparisonThe average base salary for pub...
Financial executive compensation survey 15The table below compares annual compensation betweenpublic and private company V...
16 Financial executive compensation surveyVP finance compensation by revenue rangeBase salary — all responsesLess than$100...
Financial executive compensation survey 17Director level, public and private company comparisonFor public company director...
18 Financial executive compensation surveyDirector level, public and private company comparisonBase salary — all responses...
Financial executive compensation survey 19Chief accounting officer, public and private company comparisonThe average base ...
20 Financial executive compensation surveyNone of the private company respondents receive anannual base salary exceeding $...
Financial executive compensation survey 21Treasurer, public and private company comparisonPublic company treasurers report...
22 Financial executive compensation surveyNone of the treasurers (public or private company) receivean annual base salary ...
Financial executive compensation survey 23Divisional/geographic/regional CFO, public and privatecompany comparisonPublic c...
24 Financial executive compensation surveyThemedianbasesalaryrangesofbothpublicandprivatecompanydivisional CFOs were fairl...
Financial executive compensation survey 25This appendix is excerpted from Robert Half International’sGlossary of Job Descr...
26 Financial executive compensation surveyCorporate CFOCFOs must have strong analytical, strategic planning andcommunicati...
Financial executive compensation survey 27Vice president of financeThis role requires advanced strategic planning, negotia...
Director of financeAs part of the management team, directors of financemust have strong leadership, technology, analytical...
Financial executive compensation survey 29Assistant controllerAssistant controllers should have strong analytical, technol...
Assistant treasurerCompanies seek assistant treasurer candidates with strongcommunication, technology, problem-solving and...
Financial executive compensation survey 31Thomas Thompson Jr.Thomas Thompson Jr. is a senior associate ofresearch at Finan...
32 Financial executive compensation surveyAbout Grant Thornton LLPThe people in the independent firms of Grant Thornton In...
Financial executive compensation survey 33Platinum Major Gift | $50,000 +Exxon Mobil Corp.Microsoft Corp.Gold President’s ...
34 Financial executive compensation surveyGary R. Kabureck has been an active and visible member ofFinancial Executives In...
Financial executive compensation survey 35Michael (“Mike”) McNamara is the ultimate professional inhis work, as well as in...
36 Financial executive compensation surveyRobert L. Shultz says he is currently in, what he terms,“active retirement” afte...
© 2013 Grant Thornton LLPAll rights reservedU.S. member firm of Grant Thornton International LtdContent in this publicatio...
Fei 2013 compensation survey
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  1. 1. Financial executivecompensation survey 2013SPONSORED BY GRANT THORNTON
  2. 2. Contents 1 Executive summary 3 Survey participant information 4 Overall survey findings 6 Public and private company comparisons 6 Overview 8 Corporate CFO 11 Corporate controller 14 VP finance 17 Director level 19 Chief accounting officer 21 Treasurer 23 Divisional/geographic/regional CFO25 Appendix: Job descriptions 31 About the authors 32 About Grant Thornton and Financial Executives Research Foundation Inc. AuthorsThomas Thompson Jr.Senior associate, researchFinancial Executives Research Foundation Inc.Ken Cameron, PHRDirectorGrant Thornton LLPEddie Adkins, CPAPartnerGrant Thornton LLP
  3. 3. Financial executive compensation survey 1How does your total compensation package and that of yourstaff stack up against your peers’ compensation? This researchstudy aims to answer that question by presenting the resultsof our seventh annual survey of financial executives regardingtheir salaries, bonuses, long-term incentives and retirementbenefits. As in years past, the survey was completed bysenior financial executives rather than by human resources orexecutive search firm executives. This year’s survey included a total of 554 responses.Manufacturing was the most represented industry — sameas in last year’s survey. Following the trend in recent years’surveys, the percentage of responses from private companiesincreased slightly, to 65% in 2013 from 63% in 2012, whilethose from public companies decreased slightly, from 30%in 2012 to 29% in 2013. As in past years, average revenue forpublic company participants was higher than that of the privatecompany participants.CompensationThe table below compares the base salaries of several differentpositions by title and company type. For those individuals who indicated an increase, theestimated average salary increase for all respondents was 3%versus 4% last year. For public companies, the average salaryincrease was 3.5%, and for private companies the averagesalary increase was 3.1%. Just 22% of respondents receive a long-term cashincentive — based on other calculations, phantom shares orphantom equity rights or sometimes in the form of deferredcompensation. This represents a small decrease from 2012,when 26% of respondents received this type of benefit. Even though less than one-quarter of respondents reportreceiving a long-term cash incentive, nearly half (46%) receivesome form of stock-based incentive compensation, with stockoptions (12%) being the most frequently cited.For public companies, the average salaryincrease was 3.5%, and for private companiesthe average salary increase was 3.1%.Executive summaryPublic and private company comparisonAverage base salary by title — all responsesCorporate CFO $248,900$201,700Corporate controller $207,200$145,400Vice president (VP) $208,900finance $166,900Director level $159,300$141,500Chief accounting officer $259,400$207,000Treasurer $259,600$233,500Divisional/geographic/ $175,000regional CFO $192,300PublicPrivate0 50000 100000 150000 200000 250000 300000
  4. 4. 2 Financial executive compensation surveyBenefits and perquisitesConsistent with last year’s results, the average employer-defined contribution match is 4% for both public andprivate companies. Almost three-quarters (74%) of the respondents’companies do not offer a defined benefit plan. For thosecompanies that do still offer a defined benefit plan, more thanhalf (57%) are open to new hires. One-fifth (20%) are frozenwith no further benefit accruals. Eighty-two percent of executives reported receiving oneor more perquisites. In the majority of cases (67%), thoseperquisites have not been reduced in the last year. Similar toprior years, a cellphone, cellphone allowance or cellphonereimbursement is still the most popular perquisite (77%). Nearly half (49%) of the respondents’ employers do notcover total health care costs — the employee must contribute aportion of the total costs. For those companies that do, a littlemore than one-third (34%) cover employee and family costs.Other findingsMost respondents (63%) are not covered by an employmentcontract. For those executives that are, the most commonelement is change-in-control severance (26%), followed byseverance based on number of months (25%). New to this year’s survey, the average executive has heldtheir current position for at least five years. This year’s surveyalso found that executives saw a moderate increase in thenumber of employees related to their job responsibilities, from135 in 2012 to 152 in 2013. The average for public companieswas 265; for private companies, it was 109. Consistent with last year’s results, for those executiveswho are eligible for long-term incentives (cash, stock-basedor other), the most common measure for determining payoutswas base salary level (66%), followed by more specificcompany performance measures such as goals and objectives(41%) and discretionary (36%). The use of EBITDA as aperformance measure (30%) has also continued to increase. Identical to last year’s results, the majority of respondents(56%) indicated a master’s degree as the highest level ofeducation completed. In addition, most respondents (79%)were male. Detailed figures for base salary, bonuses, long-term andstock-based compensation, retirement benefits and perquisites areprovided by title, company type and size in the following pages.Accessing survey data onlineAs in years past, all survey results are also available onlinethrough PayCheck, FEI’s online compensation benchmarkingtool. Responses can be searched based on all criteria, includingtitle, industry, company type, company location, companyannual revenue, base salary and annual bonus opportunity.PayCheck is available by clicking on the research tab on theFEI website: www.financialexecutives.org.
  5. 5. Financial executive compensation survey 3Data used in the compilation of this research report wascollected from responses received from a survey, sent viaemail to active FEI members in November and December2012 and January 2013. An active or executive FEI memberis defined as an individual currently holding a position as afinancial executive at an organization. A total of 549 memberscompleted the 36-question survey. A profile of respondentsfollows. Note that totals throughout the report may vary,because not every respondent answered every question. Compared with last year’s survey results, the percentageof responses from private company executives and nonprofitexecutives increased slightly, while those from public companyexecutives decreased slightly. This year there were noresponses from government executives. Consistent with the previous six years, the most heavilyrepresented industry was manufacturing, with 26% in 2013. Aswas the case in the last five years, the most responses came frommembers employed by companies with corporate headquarterslocated in either California or Texas, with 13% each.Survey participant informationRespondent profile Number of responses by company typeTitle Public Private Nonprofit TotalCorporate CFO 31 190 16 237 43%Corporate controller 20 41 1 62 11%VP finance 22 46 7 75 14%Director (of finance, accounting) 25 26 1 52 9%Treasurer 8 6 2 16 3%Chief accounting officer 9 9 0 18 3%Divisional/geographic/regional CFO 8 9 0 17 3%Divisional/geographic/regional controller 6 2 0 8 1%Manager (of finance, accounting) 8 5 0 13 2%Chief operating officer (COO) 1 8 2 11 2%Assistant controller 3 0 0 3 1%Managing director 1 1 0 2 0%Chief tax officer/VP tax 3 0 0 3 1%Chief auditor/VP internal audit 8 1 0 9 2%Chief business officer 0 1 0 1 0%Chief administrative officer 0 2 0 2 0%Corporate president and/or CEO 0 2 0 2 0%Assistant treasurer 4 1 0 5 1%Consultant 1 2 0 3 1%VP strategic planning and business development 1 3 1 5 1%Partner 0 1 0 1 0%Principal 0 1 1 2 0%Chief risk officer/VP risk and audit services 1 1 0 2 0%Independent board director or trustee 0 0 0 0 0%Divisional president 0 0 0 0 0%Business owner 0 0 0 0 0%General manager 0 0 0 0 0%Chief compliance officer 0 0 0 0 0%Grand total 160 358 31 549 100%29% 65% 6% 100%
  6. 6. 4 Financial executive compensation surveySalary increasesThe number of executives who received a salary increasedecreased slightly to 72% in 2013, down from 74% in 2012.This year’s 72% remains significantly higher than the survey’sall-time low in 2010, when only 43% reported receiving anannual salary increase. The average overall dollar amountof this recent salary increase was $5,997. In addition to basesalary, for those respondents that reported receiving an annualbonus, they received an average annual bonus was $52,093.Long-term incentivesOnly 22% receive a long-term cash incentive, based onother calculations, phantom shares or phantom equityrights or sometimes in the form of deferred compensation.However, 46% receive some form of stock-based incentivecompensation. A breakdown of the types of awards follows(respondents were able to choose all that apply).Overall survey findingsBenefits and perquisitesConsistent with last year’s results, the average employer-defined contribution match is 4% for both public andprivate companies. Almost three-quarters (74%) of the respondents’companies do not offer a defined benefit plan. For thosecompanies that do still offer a defined benefit plan, more thanhalf (57%) are open to new hires. One-fifth (20%) are frozenwith no further benefit accruals. The percentage of executives that report receiving atleast one or more perquisites remains fairly consistent withprior years. A breakout of the types of perquisites follows(respondents could choose all that apply).Stock-based long-term incentives — all responsesStock options 12%Restricted stock/units 10%Target award is based on a 7%fixed number of shares or unitsTarget award is based on a 5%percentage of base salaryDiscretionary 5%Phantom stock/units 5%Percent ownership 2%I am not eligible to receive 54%this type of long-term incentive
  7. 7. Financial executive compensation survey 5OtherMost respondents (63%) are not covered by an employmentcontract. For those executives that are, the most common elementis change-in-control severance (26%) followed by severancebased on number of months (25%). A breakdown of all contractelements follows (respondents could choose all that apply).Benefits and perquisites — all responsesCellphone, cellphone allowance, 77%cellphone reimbursementAirline club membership 22%Company car or car allowance 18%Paid parking 16%Commuting expenses 14%(e.g., reimbursement for gas,tolls, bus/train)Health/fitness club 13%Auto/car insurance 11%Executive physicals 10%Country club membership 8%Relocation assistance 7%Personal financial or tax advice 7%Personal use of property owned 3%or leased by the companyHousing and other living 2%expensesDining club membership 1%Other 5%Not applicable/never had 52%No longer applicable because 1%recently lostEmployment contracts — all responsesChange-in-control severance 26%Severance (not change 25%in control), number of monthsMinimum or guaranteed level 7%of compensationTax gross-ups or other 3%reimbursement of taxes owedon compensation and benefitsHousing and other 1%living expensesNo participation 63%This year’s 72% remains significantly higher than the survey’s all-time low in 2010,when only 43% reported receiving an annual salary increase.
  8. 8. 6 Financial executive compensation surveyOverviewA total of 160 responses were received from financial executivesfrom publicly held companies and 358 from financial executivesfrom privately held companies. A percent age breakdown ofpublic and private company responses by title follows. The first chart on the following page provides a year-over-year comparison of the number of finance/accountingemployees and full-time equivalents supervised by respondentsemployed at both public and private companies. The mediannumber of employees has remained consistent, in the 10 to 50range. When breaking down the staffing numbers by companytype, private companies had a slightly higher percentage in the10 to 50 range with 43% versus public companies in the samerange with 41%. The number of public company executives who received asalary increase continued to increase (82%) this year from 2012(80%). The average annual salary increase for public companyexecutives held steady at 4%. As for private companies, therewas a slight decrease in the number of executives who reportedan annual salary increase to 67% this year, compared to the69% who received a salary increase in 2012. Private companyexecutives received an average increase of 3%, the same as in2012. The majority of executives (68%) have an annual targetbonus level. For public companies, 78% of executives have atarget bonus level, while for private companies the percentagewas somewhat smaller at 64%. Consistent with last year’s results, the average employermatch for defined contribution plans is 4% for both public andprivate companies.Public and private companycomparisonsRespondents’ titlesPublic and private company comparisonsCorporate CFO 19%53%VP finance 14%13%Corporate controller 13%11%Treasurer 5%2%Assistant treasurer 2%0%Assistant controller 1%0%Director (of finance, 16%accounting) 7%Chief accounting 6%officer 3%Chief tax officer/ 1%VP tax 0%Chief auditor/ 4%VP internal audit 0%Corporate president 0%and/or CEO 1%COO 1%2%Divisional/geographic/ 5%regional CFO 3%Divisional/geographic/ 4%regional controller 1%Managing director 1%0%Manager (of finance, 4%accounting) 1%PublicPrivate0 10 20 30 40 50 60
  9. 9. The second table below shows the performance measuresused in determining the long-term incentive compensation (cash,stock-based, other) for public and private company respondents.Financial executive compensation survey 7Finance/accounting staffand full-time equivalents2013 2012 2011 2010 2009Public Private Public Private Public Private Public Private Public PrivateFewer than 10 31% 30% 25% 35% 25% 34% 19% 33% 9% 34%10–50 41% 43% 40% 46% 39% 42% 33% 44% 18% 29%51–99 12% 11% 13% 9% 12% 10% 18% 11% 14% 11%100–249 7% 10% 11% 5% 13% 7% 14% 6% 18% 10%250–499 1% 4% 4% 3% 5% 3% 4% 3% 13% 7%500–999 3% 2% 3% 1% 2% 2% 4% 2% 7% 4%1,000–5,000 4% 1% 4% 1% 4% 3% 7% 1% 22% 7%More than 5,000 1% 0%Performance measures 2013 2012 2011 2010 2009Public Private Public Private Public Private Public Private Public PrivateCompany goals/objectives 18% 17% 40% 40% 38% 22% 35% 22% 70% 61%Discretionary 14% 17% 40% 38% 26% 19% 32% 20%EBITDA 9% 15% 30% 36% 21% 18% 24% 20% 48% 51%Cash flow 9% 6% 24% 14% 18% 8% 22% 9% 29%Earnings before interest andtaxes (EBIT)7% 10% 23% 16% 18% 10% 19% 10% 19% 15%Department goals/objectives 8% 2% 22% 16% 17% 6% 18% 7% 42%Individual goals/objectives 8% 9% 21% 14% 20% 8% 15% 6% 41% 22%Net income 6% 5% 9% 12% 10% 8% 9% 7% 17% 5%Share/stock price 5% 2% 17% 9% 8% 5% 11% 7% 4%Revenue growth 4% 5% 13% 9% 11% 6% 12% 6% 23% 18%Performance againstcompanies within apeer group4% 1% 13% 2% 9% 1% 10% 1% 5%Earnings per share growth 3% 2% 22% 9% 14% 3% 16% 2% 23% 37%Return on assets 2% 1% 2% 1% 2% 2% 7% 3% 5% 3%Return on capital 2% 0% 9% 5% 5% 1% 13% 3%Return on equity 1% 4% 8% 11% 4% 5% 6% 5% 1%Economic value added 1% 2% 3% 3% 3% 3% 8% 3% 3%
  10. 10. 8 Financial executive compensation surveyCorporate CFO, public and private company comparisonFor public company corporate CFOs, the average base salary is$248,900. Seventy-four percent reported an average increase of4%. The average number of years public company CFOs haveheld their current positions is six years. For private companycorporate CFOs, the average base salary is $201,700. More thanhalf (62%) of private company respondents received an annualsalary increase. The average reported salary increase was 3%.Six years was also the average number of years private companyCFOs have held their current positions. The average public company corporate CFO’s annual bonuswas $81,700; for private company CFOs, it was $54,300. Themajority of public (55%) and private company (62%) CFOshave a target bonus level. A little more than one-quarter ofpublic (26%) and private company (27%) CFO respondentsreceive additional cash-based long-term incentive awards.Adding these incentive awards to base salary, the average totalcash compensation is $348,800 for the public company CFO,and $268,400 for the private company CFO. The majority (80%) of public company CFOs receive aform of stock-based long-term incentive award, while less thanhalf (39%) of the private company CFOs receive it. For thoseFor public company corporate CFOs, the average base salary is $248,900.Seventy-four percent reported an average increase of 4%.executives that do receive this benefit, stock options were themost popular for public (44%) and private company (27%)CFOs. The majority of public (88%) and private company(86%) CFOs do not receive dividends or dividend equivalentson stock-based awards. Many (71%) public company CFOs do not participatein a defined benefit plan, and 83% do not receive additionalmonthly supplemental retirement benefits. A cellphone,cellphone allowance or cellphone reimbursement remains themost popular perquisite for public company CFOs (74%),followed by an airline club membership and a company car orcar allowance (23% each). Fifty-six percent have not had theirperquisites reduced in the past year, but 23% are consideringdoing so in the next one to two years. Most (87%) private company CFOs do not participatein a defined benefit plan, and 87% do not receive additionalmonthly supplemental retirement benefits. The most popularperquisite for private company CFOs is a cellphone, cellphoneallowance or cellphone reimbursement (84%), followed by acompany car or car allowance (27%). Sixty-seven percent havenot had their perquisites reduced in the past year, but 21% areconsidering doing so in the next one to two years.
  11. 11. Financial executive compensation survey 9 Public and private company CFO compensation iscompared in the following table.The second table below compares public and private companyCFO median base salary ranges. Medians are fairly proportionateto company size and generally consistent with the prior year.CFO, public and private company comparisonCompensation — all responsesPublic PrivateNumber of responses 31 190Median company revenue size $150 million $60 millionAnnual salary $248,900 $201,700Annual bonus $81,700 $54,300Total cash compensation (salary,bonus, nonstock compensation)$348,800 $268,400Total compensation $418,400 $293,200CFO, public and private company comparisonBase salary — all responsesAnnual base salary Public PrivateLess than $100,000 0 3$100,000–$125,000 0 20$126,000–$150,000 4 21$151,000–$175,000 3 28$176,000–$200,000 6 43$201,000–$225,000 2 19$226,000–$250,000 4 21$251,000–$275,000 3 9$276,000–$300,000 2 11$301,000–$325,000 2 3$326,000–$350,000 1 4$351,000–$375,000 0 2$376,000–$400,000 1 3$401,000–$425,000 1 1$426,000–$450,000 2 0$451,000–$475,000 0 0$476,000–$500,000 0 0$501,000 or more 0 2Grand total 31 190 Annual salary increase percentages for both public and privatecompany corporate CFOs varied and are depicted in the table below.CFO, public and private company comparisonPercent increase in annual salary — all responsesPercent increase Public PrivateDid not receive an increase 8 711% 0 22% 2 133% 7 444% 5 125% 5 166% 0 17% 0 28% 0 69% 1 310% 0 7More than 10% 3 10Grand total 31 187
  12. 12. 10 Financial executive compensation surveyCFO compensation by revenue rangeBase salary — all responsesLess than$100 million$100 million–$999 millionMore than$1 billionNumber of responses 144 75 15Average base salary $179,435 $238,478 $291,97325thpercentile $143,000 $185,000 $208,750Median $175,000 $230,000 $255,00075thpercentile $203,000 $271,250 $337,500CFO compensation by revenue rangeTotal compensation — all responsesLess than$100 million$100 million–$999 millionMore than$1 billionNumber of responses 144 75 15Average totalcompensation$250,482 $363,563 $506,15725thpercentile $162,000 $238,500 $322,500Median $215,000 $320,000 $500,00075thpercentile $275,000 $432,000 $621,250New for this year’s survey, the two tables at left illustratethe base salaries and total compensation of corporate CFOsbroken down into percentiles by various revenue ranges. Most (71%) public company corporate CFOs are coveredby an employment contract, with the most popular provisionaddressing change-in-control severance (58%), followed byseverance based on number of months (45%). A few contractsinclude a minimum or guaranteed level of compensation (10%)or tax gross-ups or other reimbursement of taxes owed withrespect to compensation and benefits (7%). Fewer than half (46%) of the private company corporateCFO respondents are covered by an employment contract. Themost popular provisions address change-in-control severance(34%) and severance based on number of months (33%).A few contracts include a minimum or guaranteed level ofcompensation (13%) or tax gross-ups or other reimbursementof taxes owed with respect to compensation and benefits (4%). More than half (55%) of public company CFOs mustcontribute to their total health care costs, while less than half(41%) of private company CFOs must contribute to theirs.Sixty-five percent of public company CFOs have a master’sdegree, and 60% of the private company CFOs have one.Most (71%) public company corporate CFOs are covered by an employment contract,with the most popular provision addressing change-in-control severance (58%),followed by severance based on number of months (45%).
  13. 13. Financial executive compensation survey 11Corporate controller, public and private company comparisonThe average base salary for public company corporatecontrollers in the sample is $207,200. Eighty-five percentreceived an average increase of 4%, and the remaining 15% didnot receive an increase. Four years is the average number ofyears that public company corporate controllers have held theircurrent position. The average base salary for private companycorporate controllers in the sample is $145,400. In addition,66% received an average salary increase of 3%. Five years is theaverage number of years private company controllers have heldtheir current position. The average public company corporate controller’s annualbonus was $65,000, while it was $37,200 for private companycontrollers. The overwhelming majority (95%) of publiccompany controllers and two-thirds (66%) of private companycontrollers have a target bonus level. A few (21% for public;12% for private) received additional cash-based long-termincentive awards. Adding all cash components to the basesalary, the average total cash compensation is $277,600 forpublic company corporate controllers and $190,200 for privatecompany corporate controllers. Almost all (95%) public company controllers receive aform of stock-based long-term incentive award. Of the typesof share-based payment, stock options (32%) were the mostpopular. About one-third (35%) receive dividends or dividendequivalents on stock-based awards. Most (66%) privatecompany controllers do not receive any form of stock-basedlong-term incentive award. Many public (68%) and private company (66%) controllersdo not participate in a defined benefit plan, and the majority(94% for public; 90% for private) do not receive additionalmonthly supplemental retirement benefits. The most popularperquisite is a cellphone, cellphone allowance or cellphonereimbursement (75% for public; 83% for private). Ninety-fourpercent of public company controllers and 65% of privatecompany controllers have not had their perquisites reduced inthe past year. Only 6% of public companies are consideringdoing so in the next one to two years, while 24% of privatecompanies are considering it. When asked to estimate total compensation, includingshare-based awards, incentives and perks, public companycorporate controllers responded with an average of $366,600,and private company corporate controllers responded with anaverage of $198,900. For most controllers, compensation is proportionate tothe annual revenues of their employers. The following tablecompares compensation of public and private companycorporate controllers.Controller, public and private company comparisonCompensation — all responsesPublic PrivateNumber of responses 20 41Median company revenue size $1.07 billion $133 millionAnnual salary $207,200 $145,400Annual bonus $65,000 $37,200Total cash compensation (salary,bonus, nonstock compensation)$277,600 $190,200Total compensation $366,600 $198,900
  14. 14. 12 Financial executive compensation survey The median base salary ranges of public and privatecompany controllers are also proportionate to companyrevenues. None of the respondents receive an annual base salaryexceeding $375,000. The table below compares public versusprivate company controllers’ median salary ranges.Controller, public and private company comparisonBase salary — all responsesAnnual base salary Public PrivateLess than $100,000 0 5$100,000–$125,000 1 12$126,000–$150,000 4 7$151,000–$175,000 1 5$176,000–$200,000 2 3$201,000–$225,000 6 7$226,000–$250,000 1 0$251,000–$275,000 3 0$276,000–$300,000 1 1$301,000–$325,000 0 0$326,000–$350,000 0 0$351,000–$375,000 1 0$376,000–$400,000 0 0$401,000–$425,000 0 0$426,000–$475,000 0 0$476,000–$500,000 0 0$501,000 or more 0 0Grand total 20 40 Annual salary increase percentages for public andprivate company corporate controllers are depicted inthe following table.Controller, public and private company comparisonPercent increase in annual salary — all responsesPercent increase Public PrivateDid not receive an increase 3 141% 0 12% 3 83% 3 54% 4 45% 4 36% 0 17% 0 18% 1 09% 0 110% 1 1More than 10% 1 2Grand total 20 41Seventy percent of public company corporate controllers have an employment contract.The most popular provision addresses change-in-control severance (25%).
  15. 15. Financial executive compensation survey 13 The two tables below illustrate corporate controllers’ basesalaries and total compensation broken down into percentiles byrevenue range.Controller compensation by revenue rangeBase salary — all responsesLess than$100 million$100 million–$999 millionMore than$1 billionNumber of responses 24 18 19Average base salary $125,016 $165,611 $213,79025thpercentile $110,000 $120,000 $156,625Median $118,000 $172,500 $210,00075thpercentile $143,500 $196,800 $236,250Controller compensation by revenue rangeTotal compensation — all responsesLess than$100 million$100 million–$999 millionMore than$1 billionNumber of responses 23 18 19Average totalcompensation$163,458 $204,358 $403,32525thpercentile $125,750 $136,875 $189,204Median $156,000 $209,000 $325,00075thpercentile $190,000 $256,500 $441,250Seventy percent of public company corporate controllershave an employment contract. The most popular provisionaddresses change-in-control severance (25%). For the privatecompany corporate controllers in the sample, most (78%) donot have an employment contract. For the 22% who do, themost popular provision addresses severance based on number ofmonths (17%), followed by change-in-control severance (15%).The majority of public (68%) and private (54%) companycontrollers must contribute to their total health care costs.Fifty-six percent of public company controllers hold amaster’s degree, while less than half (45%) of private companycontrollers hold one.
  16. 16. 14 Financial executive compensation surveyVP finance, public and private company comparisonThe average base salary for public company vice presidentsof finance is $208,900; for private company vice presidentsof finance, it is $166,900. The majority of public (86%) andprivate company (80%) vice presidents of finance received anaverage salary increase of 4%. The average number of yearspublic and private company vice presidents of finance haveheld their current position is five years.Public company VPs of finance receive average annualbonuses of $66,700, while private company VPs of financereceive average annual bonuses of $33,700. Most (82%) publiccompany vice presidents of finance and many (67%) privatecompany vice presidents of finance have a target bonus level.The average total cash compensation for public company VPsof finance is $294,900; for private company VPs of finance,it is $206,400.More than three-quarters (86%) of public company VPsof finance receive a form of stock-based long-term incentiveaward. Of the types of share-based payment, restricted stock/restricted stock options (42%) are the most popular. Less thanone-quarter (23%) receive dividends or dividend equivalentson stock-based awards. Some (41%) private company VPsof finance receive a form of stock-based long-term incentiveaward. The types of awards vary, with stock options beingthe most popular. Half do not receive dividends or dividendequivalents on stock-based awards.Most VPs in the sample participate in a definedcontribution plan with a company match. Thirty-two percentof public company VPs of finance participate in a definedbenefit plan, and most (73%) do not have or participate in asupplemental retirement plan. Only a small percentage (20%)of private company VPs of finance participate in a definedbenefit plan, and even fewer (2%) participate in a supplementalretirement plan. Seventy-four percent of public and 73% ofprivate company VPs of finance have not had their perquisitesreduced in the past year. Sixteen percent of public companiesare considering doing so in the next one to two years, while22% of private companies are considering it.The most popular perquisite is a cellphone, cellphoneallowance or cellphone reimbursement (68% for public; 74%for private). When asked to estimate total compensationincluding share-based awards, incentives and perks, publiccompany VPs of finance responded with an average of$325,800; private company VPs of finance responded withan average of $219,900.
  17. 17. Financial executive compensation survey 15The table below compares annual compensation betweenpublic and private company VPs of finance.None of the VP respondents receive an annual base salaryof more than $300,000. The second table compares base salaryranges of public and private company VPs of finance.VP finance, public and private company comparisonCompensation — all responsesPublic PrivateNumber of responses 22 46Median company revenue size $750 million $40 millionAnnual salary $208,900 $166,900Annual bonus $66,700 $33,700Total cash compensation (salary,bonus, nonstock compensation)$294,900 $206,400Total compensation $325,800 $219,900VP finance, public and private company comparisonBase salary — all responsesAnnual base salary Public PrivateLess than $100,000 1 1$100,000–$125,000 0 5$126,000–$150,000 0 10$151,000–$175,000 4 12$176,000–$200,000 5 12$201,000–$225,000 5 3$226,000–$250,000 2 3$251,000–$275,000 3 0$276,000–$300,000 2 0$301,000–$325,000 0 0$326,000–$350,000 0 0$351,000–$375,000 0 0$376,000–$400,000 0 0$401,000–$425,000 0 0$426,000–$475,000 0 0$476,000–$500,000 0 0$501,000 or more 0 0Grand total 22 46Annual salary increase percentages for both public andprivate VPs of finance are detailed in the following table.VP finance, public and private company comparisonPercent increase in annual salary — all responsesPercent increase Public PrivateDid not receive an increase 3 91% 0 02% 5 23% 6 134% 1 55% 3 66% 2 17% 0 38% 1 19% 0 010% 0 2More than 10% 1 3Grand total 22 45
  18. 18. 16 Financial executive compensation surveyVP finance compensation by revenue rangeBase salary — all responsesLess than$100 million$100 million–$999 millionMore than$1 billionNumber of responses 37 26 11Average base salary $159,722 $186,730 $220,81825thpercentile $126,250 $165,000 $190,000Median $155,000 $188,500 $220,00075thpercentile $184,625 $200,000 $233,750VP finance compensation by revenue rangeTotal compensation — all responsesLess than$100 million$100 million–$999 millionMore than$1 billionNumber of responses 37 26 11Average totalcompensation$204,528 $259,289 $353,18225thpercentile $139,000 $205,000 $260,750Median $180,000 $243,750 $340,00075thpercentile $234,000 $272,500 $432,250The two tables at left illustrate base salaries and totalcompensation for VPs of finance broken down into percentilesby various revenue ranges. Less than half (41%) of public company VPs of finance inthe sample have an employment contract. Of those, the mostfrequently cited type is contracts providing for change-in-control severance (27%). About one-quarter (28%) of privatecompany VPs of finance in the sample have an employmentcontract. For those who do, however, contracts that providefor severance based on change in control or number of months(22%) were the most often cited. More than half of public (55%) and private company (54%)VPs of finance must contribute to their total health care costs.Most public (64%) and private company (56%) VPs of financehold a master’s degree.Less than half (41%) of the public company VPs of financein the sample have an employment contract.
  19. 19. Financial executive compensation survey 17Director level, public and private company comparisonFor public company director-level respondents (i.e., directorof finance, director of accounting), the average base salary is$159,300, while the average base salary for the private companydirector-level respondents in the sample is $141,500. Three-quarters (76%) of public company directors and a majority(84%) of private company directors received an average salaryincrease of 3%. Three years is the average number of yearspublic company directors have held their current position,while for private company directors, the average is four years.Annual bonuses for public company directors average$34,800, and for private company directors the average annualbonus is $29,000. Most public (88%) and private company(81%) directors have a target bonus level. Most publiccompany directors (83%) and many private company directors(77%) do not receive additional cash-based long-term incentiveawards. The average total cash compensation for a publiccompany director is $201,800; for a private company director,it is $172,800.Most (64%) public company directors receive a form ofstock-based long-term incentive award. Of the types of share-based payment, stock options are the most popular (44%).Very few (12%) receive dividends or dividend equivalentson the stock-based awards. Most (88%) private directors donot receive a form of stock-based long-term incentive award.Of those who do, phantom stock/phantom stock units arethe most popular option. Very few (4%) receive dividends ordividend equivalents on stock-based awards.The majority of public and private company directorsparticipate in a defined contribution plan with a companymatch. Few participate in a defined benefit plan or asupplemental retirement plan. The most popular perquisite isa cellphone, cellphone allowance or cellphone reimbursement(72% for public; 62% for private). Most public and privatecompany directors have not had their perquisites reduced inthe last year, though about one-third (32%) of public companydirectors and almost one-quarter (22%) of private companydirectors say their company is considering doing so in the nextone to two years.When asked to estimate total compensation (includingshare-based awards, incentives and perks), the average totalcompensation for public company directors is $222,800; forprivate company directors, it is $177,300.In the majority of cases, compensation for directors isproportionate to the annual revenues of their employers. Thefollowing table compares public and private company director-level compensation.Director level, public and private company comparisonCompensation — all responsesPublic PrivateNumber of responses 25 26Median company revenue size $1.25 billion $236 millionAnnual salary $159,300 $141,500Annual bonus $34,800 $29,000Total cash compensation (salary,bonus, nonstock compensation)$201,800 $172,800Total compensation $222,800 $177,300
  20. 20. 18 Financial executive compensation surveyDirector level, public and private company comparisonBase salary — all responsesAnnual base salary Public PrivateLess than $100,000 0 1$100,000–$125,000 3 6$126,000–$150,000 9 12$151,000–$175,000 7 4$176,000–$200,000 3 3$201,000–$225,000 2 0$226,000–$250,000 1 0$251,000–$275,000 0 0$276,000–$300,000 0 0$301,000–$325,000 0 0$326,000–$350,000 0 0$351,000–$375,000 0 0$376,000–$400,000 0 0$401,000–$425,000 0 0$426,000–$475,000 0 0$476,000–$500,000 0 0$501,000 or more 0 0Grand total 25 26 The median base salary ranges of both public and privatecompany directors are consistent with company revenues.None of the director-level respondents receive an annual basesalary above $250,000. The table above compares median salaryranges for public and private company directors.Director level, public and private company comparisonPercent increase in annual salary — all responsesPercent increase Public PrivateDid not receive an increase 6 41% 0 02% 6 83% 8 84% 0 15% 2 36% 0 07% 1 08% 0 09% 0 010% 1 0More than 10% 1 1Grand total 25 25The percentage increases for annual salary for both publicand private company directors are detailed in the above table.A majority (92%) of public and many (77%) private companyrespondents are not covered by an employment contract. Ofthose who are, the contract type most often cited is for severancebased on number of months (8%) for public companies andchange-in-control severance (15%) for private companies.Almost half (48%) of public company directors and morethan half (54%) of private company directors must contributeto their total health care costs. Most public (64%) and almosthalf of private company (48%) directors hold a master’s degree.
  21. 21. Financial executive compensation survey 19Chief accounting officer, public and private company comparisonThe average base salary for public company chief accountingofficers (CAOs) is $259,400. Most (89%) received an averagesalary increase of 4%. The average base salary for privatecompany CAOs is $207,000. More than half (56%) of theprivate company CAOs received an average salary increase of1%. The average number of years public and private companyCAOs have held their current position is seven years.The average public company CAO’s annual bonus was$102,100, and for private company CAOs it was $100,100.The majority of public company CAOs (78%) and privatecompany CAOs (89%) have a target bonus level. Very fewpublic company CAOs (11%) and one-third of privatecompany CAOs (33%) receive additional cash-based long-term incentive awards. Adding bonus and other cash incentivesto the base salary, the average total cash compensation fora public company CAO is $379,500; for a private companyCAO, it is $312,300.All public company CAOs receive a form of stock-basedlong-term incentive award, while less than half (44%) ofprivate company CAOs receive this incentive. Of the types ofshare-based payment, restricted stock/restricted stock optionsare the most popular for public company CAOs, and stockoptions are most popular for private company CAOs. One-third of public company CAOs receive dividends or dividendequivalents on the stock-based awards, but only a few (11%)of the private company CAOs do.Almost all CAOs participate in a defined contribution planwith a company match. Few participate in a defined benefitplan or receive additional monthly retirement benefits. Themost popular perquisite is a cellphone, cellphone allowance orcellphone reimbursement (89% for public; 78% for private).Seventy-five percent of public company CAOs and 63% ofprivate company CAOs have not had their perquisites reducedin the past year. When asked to estimate total compensation(including share-based awards, incentives and perks), publiccompany CAOs responded with an average of $543,900; privatecompany CAOs responded with an average of $323,000.For the most part, compensation is proportionate to theannual revenues of respondents’ employers. The followingtable compares average compensation based on company type.Chief accounting officer, public and private company comparisonCompensation — all responsesPublic PrivateNumber of responses 9 9Median company revenue size $2.1 billion $55 millionAnnual salary $259,400 $207,000Annual bonus $102,100 $100,100Total cash compensation (salary,bonus, nonstock compensation)$379,500 $312,300Total compensation $543,900 $323,000
  22. 22. 20 Financial executive compensation surveyNone of the private company respondents receive anannual base salary exceeding $275,000. For public companies,only one respondent receives an annual base salary exceeding$351,000. The following table details the base salary range.Chief accounting officer, public and private company comparisonBase salary — all responsesAnnual base salary Public PrivateLess than $100,000 0 0$100,000–$125,000 0 1$126,000–$150,000 1 1$151,000–$175,000 0 1$176,000–$200,000 1 1$201,000–$225,000 0 0$226,000–$250,000 2 3$251,000–$275,000 2 2$276,000–$300,000 0 0$301,000–$325,000 2 0$326,000–$350,000 0 0$351,000–$375,000 1 0$376,000–$400,000 0 0$401,000–$425,000 0 0$426,000–$475,000 0 0$476,000–$500,000 0 0$501,000 or more 0 0Grand total 9 9Annual salary increase percentages for both public andprivate company CAOs are detailed in the following table.Chief accounting officer, public and private company comparisonPercent increase in annual salary — all responsesPercent increase Public PrivateDid not receive an increase 1 41% 0 22% 1 13% 2 24% 2 05% 1 06% 1 07% 0 08% 0 09% 0 010% 1 0More than 10% 0 0Grand total 9 9Most public and private company CAOs have anemployment contract with severance payments based on eitherchange in control or number of months.Some (44%) public company CAOs and most (67%)private company CAOs must contribute to their total healthcare costs. Most (89%) public and more than half of (56%)private company CAOs hold bachelor’s degrees as theirhighest level of education completed.
  23. 23. Financial executive compensation survey 21Treasurer, public and private company comparisonPublic company treasurers reported an increase in their averagebase salary to $259,600. For private company treasurers, theaverage base salary was $233,500. The average salary increasefor public company treasurers is 3%; for private companytreasurers, it is 2%. Six years is the average number of yearspublic company treasurers have held their current position,while for private company treasurers, the average is seven years.Annual bonuses for public company treasurers average$115,900, and for private company treasurers, the averageannual bonus is $63,100. Most (88%) public companytreasurers and half of the private company treasurers havea target bonus level. More than half (63%) of the publiccompany treasurers and most (83%) private companytreasurers do not receive additional cash-based long-termincentive awards. Adding salary, bonus and other cashincentives, the average total cash compensation for publiccompany treasurers is $388,600; for private companytreasurers, it is $300,300.Most (88%) public company treasurers receive a formof stock-based long-term incentive award. Of the types ofshare-based payment, stock options are the most popular.Half receive dividends or dividend equivalents on stock-basedawards. The majority (83%) of private company treasurers donot receive a form of stock-based long-term incentive award.For those who do, stock options are the most popular. None ofthe private company treasurers receive dividends or dividendequivalents on stock-based awards.Many public and private company treasurers participatein a defined contribution plan with a company match. Many(88%) of the public company treasurers participate in a definedbenefit plan, while very few (17%) private company treasurersdo. The most popular perquisite is a cellphone, cellphoneallowance or cellphone reimbursement (88% for public;67% for private). Three-quarters of public company treasurersand half of the private company treasurers have not seen areduction in their perquisites in the last year. Few (13%) publicand only one-third of private companies are considering doingso in the next one to two years. When asked to estimate totalcompensation (including share-based awards, incentives andperks), public company treasurers reported with an averageof $495,000; private company treasurers responded with anaverage of $303,500.The following table compares public and private companytreasurer compensation.Treasurer, public and private company comparisonCompensation — all responsesPublic PrivateNumber of responses 8 6Median company revenue size $2.2 billion $990 millionAnnual salary $259,600 $233,500Annual bonus $115,900 $63,100Total cash compensation (salary,bonus, nonstock compensation)$388,600 $300,300Total compensation $495,000 $303,500Most (88%) public company treasurers receive a form of stock-based long-term incentiveaward. Of the types of share-based payment, stock options are the most popular.
  24. 24. 22 Financial executive compensation surveyNone of the treasurers (public or private company) receivean annual base salary of less than $151,000, and only one receivesa base salary exceeding $376,000. The following table comparespublic and private company treasurers’ median salary ranges.Treasurer, public and private company comparisonBase salary — all responsesAnnual base salary Public PrivateLess than $100,000 0 0$100,000–$125,000 0 0$126,000–$150,000 0 0$151,000–$175,000 1 1$176,000–$200,000 1 1$201,000–$225,000 2 0$226,000–$250,000 0 1$251,000–$275,000 1 2$276,000–$300,000 1 1$301,000–$325,000 1 0$326,000–$350,000 0 0$351,000–$375,000 0 0$376,000–$400,000 1 0$401,000–$425,000 0 0$426,000–$475,000 0 0$476,000–$500,000 0 0$501,000 or more 0 0Grand total 8 6The following table shows annual salary increasepercentages for both public and private company treasurers.Treasurer, public and private company comparisonPercent increase in annual salary — all responsesPercent increase Public PrivateDid not receive an increase 1 21% 0 02% 1 03% 4 24% 1 25% 0 06% 0 07% 0 08% 1 09% 0 010% 0 0More than 10% 0 0Grand total 8 6Half of the public company treasurers report having anemployment contract, while all private company treasurersreported one.Around three-quarters of both public (63%) and privatecompany (68%) treasurers contribute to their total healthcare costs. Sixty-three percent of public company treasurersreported completing master’s degrees, while 83% of privatecompany treasurers have completed master’s degrees.
  25. 25. Financial executive compensation survey 23Divisional/geographic/regional CFO, public and privatecompany comparisonPublic company divisional CFOs reported an average basesalary of $175,000 and an average salary increase of 3%. Privatecompany divisional CFOs reported an average base salary of$192,300 and an average salary increase of 6%. Nine years isthe average number of years public company divisional CFOshave held their current position, while for private companydivisional CFOs, the average is six years.All public and private company divisional CFOs reportedreceiving a bonus. For public company divisional CFOs, theaverage annual bonus is $114,700, while for private companydivisional CFOs, it is $44,400. Three-quarters of publiccompany and many (56%) private company divisional CFOshave a target bonus level. However, more than half (63%) thepublic company divisional CFOs and more than three-quarters(78%) of the private company divisional CFOs do not receiveadditional cash-based long-term incentive awards. Includingtotal salary, bonus and other long-term cash awards, theaverage total cash compensation for public company divisionalCFOs is $292,500; for private company divisional CFOs,it is $245,100.Three-quarters of public and most (67%) of privatecompany divisional CFOs do not receive a form of stock-based long-term incentive award. Of the types of share-basedpayment, the most popular for public companies is restrictedstock/restricted stock options, while for private companies itwas a target award based on a fixed number of shares or units.Only a small number of respondents (13% for public; 11 % forprivate) reported receiving dividends or dividend equivalentson stock-based awards.Most participate in a defined contribution plan with acompany match. Half the public and just over two-thirds(37%) of private company divisional CFOs participate ina defined benefit plan. Very few divisional CFOs receiveadditional monthly retirement benefits. Three-quartersof public and two-thirds of private company divisionalCFOs have a cellphone, cellphone allowance or cellphonereimbursement as a perquisite. While 29% of public andprivate companies are considering reducing perquisites inthe next one to two years, 57% of public and 71% of privatecompany divisional CFOs have not had their perquisitesreduced in the past year. When asked to estimate totalcompensation (including share-based awards, incentives andperks), public company divisional CFOs responded with anaverage $350,600; private company divisional CFOs respondedwith an average of $251,400.In most cases, compensation is proportionate to the annualrevenues of divisional CFOs’ employers. The following tablecompares compensation for public and private companydivisional CFOs.Divisional/geographic/regional CFO,public and private company comparisonCompensation — all responsesPublic PrivateNumber of responses 8 9Median company revenue size $325 million $250 millionAnnual salary $175,000 $192,300Annual bonus $114,700 $44,400Total cash compensation (salary,bonus, nonstock compensation)$292,500 $245,100Total compensation $350,600 $251,400
  26. 26. 24 Financial executive compensation surveyThemedianbasesalaryrangesofbothpublicandprivatecompanydivisional CFOs were fairly consistent with company revenues. Onlyone of the divisional CFO respondents received an annual base salaryexceeding $226,000. The following table compares median salaryranges for public and private company divisional CFOs.Divisional/geographic/regional CFO,public and private company comparisonBase salary — all responsesAnnual base salary Public PrivateLess than $100,000 0 0$100,000–$125,000 1 1$126,000–$150,000 2 1$151,000–$175,000 1 0$176,000–$200,000 2 4$201,000–$225,000 2 2$226,000–$250,000 0 1$251,000–$275,000 0 0$276,000–$300,000 0 0$301,000–$325,000 0 0$326,000–$350,000 0 0$351,000–$375,000 0 0$376,000–$400,000 0 0$401,000–$425,000 0 0$426,000–$475,000 0 0$476,000–$500,000 0 0$501,000 or more 0 0Grand total 8 9The table below shows annual salary increase percentagesfor both public and private company divisional CFOs.Divisional/geographic/regional CFO,public and private company comparisonPercent increase in annual salary — all responsesPercent increase Public PrivateDid not receive an increase 0 11% 1 02% 0 13% 4 14% 2 15% 1 26% 0 07% 0 08% 0 09% 0 010% 0 2More than 10% 0 1Grand total 8 9More than half (63%) of public company divisional CFOsand slightly less than two-thirds (44%) of private companydivisional CFOs have an employment contract. Severance basedon number of months was the contract type most often cited.A little more than one-third (38%) of public and morethan half (67%) of private company divisional CFOs mustcontribute to their total health care costs. Three-quarters ofpubic company divisional CFOs hold master’s degrees astheir highest level of education completed, while only 29% ofprivate company divisional CFOs do.
  27. 27. Financial executive compensation survey 25This appendix is excerpted from Robert Half International’sGlossary of Job Descriptions for Accounting and Finance, whichcovers a variety of positions in accounting, finance, bankingand financial services, and is derived from the thousands offull-time, temporary and project placements made throughAccountemps, Robert Half Finance & Accounting, and RobertHalf Management Resources, as well as the expert marketknowledge of those organizations’ recruiting and staffingprofessionals. While the glossary provides an overview oftypical responsibilities and skill requirements, variations dooccur based on company size, industry, local employmentconditions and other factors. For more information, contactthe Robert Half office nearest you or call 800.803.8367. Job descriptions help organizations clearly identify the keycriteria for positions within the company. They also make therésumé evaluation, interview and selection stages more efficient.By clearly defining the requirements for a job opening, hiringmanagers can better determine the best person for the role.Well-written job descriptions also help job seekers understandthe expectations of the position and allow them to comparetheir skills with those needed to be effective in the role. Manycompanies post job descriptions online when recruiting foran open position. This is an opportunity for applicants tocustomize their résumés and cover letters to show more clearlyhow their skills and experience match the requirements ofthe job. Candidates who tailor their job search materials tothe needs of prospective employers have a better chance ofprogressing through the initial evaluation and hiring process. A well-executed job description accomplishes thefollowing objectives:• Establishes the framework for defining the job andanalyzing appropriate hiring criteria• Gives candidates a clear idea of what to expect and helps todeter those who lack the necessary skills from applying for the job• Helps the hiring manager decide on a competitivepay range, based on market value, for the variousresponsibilities of the position• Serves as a tool for setting expectations and establishingobjective measures for performance appraisals• Provides a preliminary idea of how easy it will be to findsomeone to fill the openingThe following categories represent a basic template ofwhat a typical job description might include and the specificinformation it should convey:• Position title — The full title of the job and, if possible, thetitle of the person to whom the candidate will report• General description — Two to three sentences outlining theoverall responsibilities of the position• Key responsibilities — The specific tasks the applicant willbe asked to carry out on a daily basis• Skills and attributes — The hiring criteria that will be usedto evaluate candidates, such as skills, experience, knowledgeor traits required to perform the job• Educational requirements — Any type of licensing,certification or training required to be eligible for the positionAppendix:Job descriptions
  28. 28. 26 Financial executive compensation surveyCorporate CFOCFOs must have strong analytical, strategic planning andcommunication skills, including the ability to work well withthe CEO, board members and other senior managers. CFOstypically have at least 10 years of experience in accounting orfinance, including a minimum of five years in a managementrole. The larger the firm, the more experience required.Many companies prefer candidates who have an MBA and/or a professional accreditation such as CPA or certifiedmanagement accountant (CMA). Professionals should knowall aspects of generally accepted accounting principles. Publiccompanies also require experience with SEC reporting.Previous experience in public accounting is also highly valued.Candidates for CFO should have held positions of increasingresponsibility within an accounting department, such asdirector of finance, director of accounting or controller.Typical duties include:• providing strategic management of the accounting andfinance functions;• directing accounting policies, procedures and internal controls;• recommending improvements to ensure the integrity of the company’s financial information;• managing or overseeing relationships with independent auditors;• collaborating with chief information officers on technology decisions;• overseeing financial systems implementations and upgrades;• managing relationships with investors and investment institutions;• identifying and managing business risks and insurancerequirements; and• hiring, training and retaining competent accounting andfinance staff.Corporate controllerControllers must have solid communication, technology,analytical and management skills. Candidates should knowall aspects of generally accepted accounting principles. Publiccompanies also require knowledge of SEC regulations andprovisions of the Sarbanes-Oxley Act. The role usuallyrequires at least seven years of relevant experience and abachelor’s degree in accounting or finance. Many organizationsprefer candidates who have an MBA or professionalaccreditation such as CPA or CMA. Previous experience inpublic accounting is highly valued.Typical duties include:• planning, directing and coordinating all accountingoperational functions;• managing the accumulation and consolidation of allfinancial data necessary for an accurate accounting ofconsolidated business results;• coordinating and preparing internal and external financial statements;• coordinating activities of external auditors;• providing management with information vital to the decision-making process;• managing the budget process;• assessing current accounting operations, offeringrecommendations for improvement and implementing new processes;• evaluating accounting and internal control systems;• evaluating the effectiveness of accounting software and the supporting database as needed;• developing and monitoring business performance metrics;• overseeing regulatory reporting, frequently including taxplanning and compliance; and• hiring, training and retaining competent accounting staff.
  29. 29. Financial executive compensation survey 27Vice president of financeThis role requires advanced strategic planning, negotiation,communication and management skills. Individuals pursuingvice president of finance positions generally have at least 10years of experience in accounting, finance or treasury. Previousexperience in public accounting is highly valued. Manycompanies prefer candidates with a master’s degree in businessadministration (MBA) or finance and/or a professionalaccreditation such as CPA or CMA.Typical duties include:• ensuring compliance with state and federal regulations;• establishing and maintaining sound relationships withfinancial institutions, including commercial and investment banks;• making recommendations to optimize investments offinancial capital;• coordinating and managing the annual budget process;• communicating the company’s actual performanceversus budgets and objectives to senior management andrecommending growth strategies, as well as identifyingareas for improvement;• collaborating with leaders of other departments to preparefor critical business opportunities; and• hiring, training and retaining competent finance staff.Director of accountingDirectors of accounting must have strong communication,organizational, technology and leadership skills. Candidatesusually have at least 10 years of experience, includingprevious management responsibilities. They also should havecomprehensive knowledge of generally accepted accountingprinciples. Those with public accounting experience have anadvantage. Businesses expect a minimum of a bachelor’s degreein accounting but generally prefer applicants who have alsoearned an MBA or certification such as CPA or CMA.Typical duties include:• developing and maintaining accounting policies and procedures;• planning, organizing and coordinating the year-end closeprocess with internal and external auditors;• ensuring the successful completion of the company’s tax filings;• preparing financial statements, including cash flow statements;• planning, budgeting and authorizing expenditures; and• hiring, training and retaining competent accounting staff.
  30. 30. Director of financeAs part of the management team, directors of financemust have strong leadership, technology, analytical andcommunication. The position generally requires at least 10years of experience in accounting or finance and managementskills. Previous experience in public accounting is highlyvalued. A bachelor’s degree in finance or accounting isrequired, and an MBA or a professional designation such asCPA or CMA is preferred.Typical duties include:• overseeing insurance and risk management;• maintaining budgeting and forecasting models;• performing financial modeling and analysis;• assisting with business funding decisions; and• hiring, training and retaining competent finance staff.28 Financial executive compensation surveyTreasurerThe treasurer role requires excellent communication,technology, problem-solving and analytical abilities.Candidates usually need at least 10 years of professionalexperience, and public accounting experience is a plus.Companies seek applicants who have a bachelor’s degreein accounting, finance or economics, and prefer advancedcredentials such as an MBA or a financial certification.Typical duties include:• establishing and maintaining relationships with commercialbankers, allowing open discussion on terms of available financing;• researching and analyzing financing alternatives andproviding recommendations;• structuring debt arrangements;• ensuring debt covenant compliance;• directing investments of corporate cash;• monitoring operating cash requirements;• communicating the company’s operating and financialperformance goals and strategies to external investors andcreditors; and• hiring, training and retaining competent staff.
  31. 31. Financial executive compensation survey 29Assistant controllerAssistant controllers should have strong analytical, technology,communication and organizational skills. This positiongenerally requires at least five years of experience in accountingor finance, and public accounting experience is highly valued.Businesses expect a bachelor’s degree in accounting or finance,but many prefer applicants who also have an MBA or anaccreditation such as CPA or CMA.Typical duties include:• preparing and consolidating financial statements;• establishing and maintaining internal controls;• managing all aspects of the general ledger;• providing monthly, quarterly and year-end analyses;• coordinating or assisting with the budget process;• researching accounting issues for compliance with generallyaccepted accounting principles;• analyzing and reporting cost variances;• serving as a liaison to external auditors; and• supervising accounts receivable, accounts payable andgeneral accounting departments.Tax directorTax directors must be highly motivated and take the initiativeto stay up-to-date with industry and government regulationsthrough continuing education and subscriptions to professionaljournals. Tax director positions usually require a bachelor’sdegree in accounting and a CPA designation. An MBA isalso preferred. Candidates should have at least seven years ofexperience, as well as polished negotiation, communication andanalytical skills.Typical duties include:• reviewing various corporate tax returns and year-end taxaccruals and estimating income taxes;• conducting research and planning according to current taxlaws, and advising senior management on the tax impact ofcurrent and proposed company activities and transactions;• identifying ways to minimize the organization’s tax liabilityeach year in accordance with current tax laws;• representing the company on tax audits conducted byoutside regulatory agencies;• facilitating tax-related communication with the appropriategovernment agencies and in-house counsel;• overseeing reporting and payment of all local, state andfederal taxes; and• hiring, training and retaining competent tax staff.
  32. 32. Assistant treasurerCompanies seek assistant treasurer candidates with strongcommunication, technology, problem-solving and analyticalskills. These positions generally require a bachelor’s degreein accounting or finance, and at least seven years of relevantexperience. Previous experience in public accounting is alsohighly valued. Applicants who have an MBA or a professionalcertification have an advantage.Typical duties include:• researching and analyzing approaches to financing andhedging strategies;• reviewing and negotiating documents, including loanagreements and letters of credit;• determining the company’s ability to meet the financialterms of contracts;• compiling information from various corporate departmentsfor loan agreements;• monitoring compliance with loan agreements;• tracking cash flow and developing cash forecasts;• managing banking relationships; and• maintaining records for corporate stock plans.30 Financial executive compensation survey
  33. 33. Financial executive compensation survey 31Thomas Thompson Jr.Thomas Thompson Jr. is a senior associate ofresearch at Financial Executives Research FoundationInc., author of more than 20 published researchreports and primary blogger of the FERF Researchblog. Thompson received a BA in economics fromRutgers University and a BA in psychology fromMontclair State University. Prior to joining FERF,Thompson held positions in business operationsand client relations at NCG Energy Solutions, AXAEquitable and Morgan Stanley Dean Witter.Thompson can be reached at tthompson@financialexecutives.org or 973.765.1007.Ken CameronKen Cameron, CCP, PHR, is a director inGrant Thornton’s Compensation and BenefitsConsulting practice based in Atlanta, and servesas a Southeast Region compensation leader. Hehas more than 20 years of compensation andhuman resources leadership experience in boththe consulting and corporate environments. Priorto joining Grant Thornton, Cameron was a seniorconsultant at Towers Watson, and also spent over10 years as a compensation and benefits leaderfor BellSouth. He has worked with a wide spectrumof organizations, including Coca-Cola Enterprises,the Federal Reserve Bank of Atlanta, Aarons Inc.and Emory University. His areas of experienceinclude reward strategy, executive compensationand benefits, compensation committee support,variable pay design, cash and equity-based rewardprograms, international compensation design, broad-based pay design, benchmarking and analysis, andperformance management. Cameron has earned thedesignation of Certified Compensation Professionalfrom WorldatWork®. In addition; he has been afeatured speaker for several local and nationalcompensation and human resources organizations.He received an MS in industrial relations from LoyolaUniversity’s Institute of Industrial Relations and his BAin psychology from the University of Rochester.Cameron can be reached at ken.cameron@us.gt.comor 404.704.0136.Eddie AdkinsEddie Adkins, CPA, is a partner in Grant Thornton’snational tax office in Washington, D.C., and isthe national tax technical leader for the firm’sCompensation and Employee Benefits Consultingpractice. He has the primary responsibility withinGrant Thornton for tracking new regulatory andlegislative developments related to executivecompensation and employee benefits. Adkins haswritten extensively on compensation and benefitstopics, including articles in the Daily Tax Report andTax Notes. He has also written articles for journalssuch as the Compensation Planning Journal, TheTax Advisor, and the Journal of Taxation. Adkinshas been quoted in various newspapers across thecountry, including The Wall Street Journal, The NewYork Times, the Chicago Tribune and USA Today, andhas also appeared on CNBC. He is a former chairof the AICPA’s employee benefits and compensationtechnical resource panel, the Section 409A TaskForce and the National Employee Benefits Conference.Adkins can be reached at eddie.adkins@us.gt.com or202.521.1565.About the authors
  34. 34. 32 Financial executive compensation surveyAbout Grant Thornton LLPThe people in the independent firms of Grant Thornton International Ltd providepersonalized attention and the highest-quality service to public and private clientsin more than 100 countries. Grant Thornton LLP is the U.S. member firm ofGrant Thornton International Ltd, one of the six global audit, tax and advisoryorganizations. Grant Thornton International Ltd and its member firms are not aworldwide partnership, as each member firm is a separate and distinct legal entity.In the United States, visit Grant Thornton LLP at www.GrantThornton.com.About Financial Executives Research Foundation Inc.Financial Executives Research Foundation (FERF) is the nonprofit 501(c)(3) researchaffiliate of Financial Executives International (FEI). FERF researchers identify keyfinancial issues and develop impartial, timely research reports for FEI membersand nonmembers alike, in a variety of publication formats. FERF relies primarilyon voluntary tax-deductible contributions from corporations and individuals, andpublications can be ordered by logging onto www.ferf.org.1250 Headquarters Plaza West Tower, 7thFloor Morristown, New Jersey 07960 www.ferf.org About Grant Thornton andFinancial Executives ResearchFoundation Inc.
  35. 35. Financial executive compensation survey 33Platinum Major Gift | $50,000 +Exxon Mobil Corp.Microsoft Corp.Gold President’s Circle | $10,000–$14,999Cisco Systems Inc.Cummins Inc.Dow Chemical Co.General Electric Co.Silver President’s Circle | $5,000–$9,999Apple, Inc.The Boeing Co.Comcast Corp.Corning Inc.Credit SuisseDell Inc.Duke Energy Corp.E. I. du Pont de Nemours & Co.Eli Lilly and Co.GM FoundationHalliburton Co.The Hershey Co.IBM Corp.Johnson & JohnsonLockheed Martin Corp.McDonald’s Corp.Medtronic Inc.Motorola Solutions Inc.PepsiCo Inc.Pfizer Inc.Procter & Gamble Co.Safeway Inc.Sony Corporation of AmericaTenneco Inc.Tyco International Management Co.Wells Fargo & Co.AcknowledgementsFinancial Executives Research Foundation Inc. (FERF)acknowledges and thanks the following for their longstandingsupport and generosity.
  36. 36. 34 Financial executive compensation surveyGary R. Kabureck has been an active and visible member ofFinancial Executives International for nearly two decades whileat the same time engaging in his career of leadership, expertise,service and global recognition. He has served as Vice Chair ofFEI’s Committee on Corporate Reporting (CCR) as well asserving on various standard-setting board advisory committeesat the Financial Accounting Standards Board (FASB) andPublic Company Accounting Oversight Board (PCAOB). Hehas spoken before the U.S. Congress and other governmentalbodies on various proposed legislative actions and has been astrong voice for FEI and financial executives at the nationaland global levels.Kabureck has 28 years of experience with Xerox Corp.,culminating as Vice President and Chief AccountingOfficer, where he had global responsibility at the $22 billiontechnology and services company for both InternationalFinancial Reporting Standards (IFRS) and U.S. generallyaccepted accounting principles (U.S. GAAP) processes. Thatinvolved leading a team of more than 1,200 accountantsworldwide, oversight of Xerox’s accounting policydevelopment, implementation of new accounting procedures,internal and external financial reporting as well as internalcontrols. Prior to Xerox, he worked for PwC for 10 years.Peers in the Rochester Chapter describe Kabureck as a“thought leader and recognized expert in financial reportingmatters,” as well as a “natural leader, who is the chapter’sstrongest voice on technical matters at a national level.”They also acknowledge his willingness to share his globalexperiences and knowledge with the chapter members and toserve as a speaker at meetings.Kabureck served as Rochester Chapter President from1999-2000 (after having joined and immediately served on thechapter’s Board of Directors) and recognized the changingFinancial Executives InternationalDistinguished Service Award RecipientCongratulations from the FEI Rochester Chapter!landscape of the business community by supporting outreachto a group of members that was historically under-representedin the chapter. As such, he continued to build chapterprograms and membership within the evolving businessenvironment. Though he eventually worked several hundredmiles from where he lived in the Rochester area, he remainedinvolved as much as possible with the chapter.He earned a Bachelor of Science Degree in Accountingat the University of Bridgeport in 1975 and a Master ofBusiness Administration (Finance, General) in 1981. Kabureckwas appointed a Member of the International AccountingStandards Board (IASB), and has been based in London sincehis assignment began in April 2013.Married for 34 years, Kabureck and his wife have raisedtwo children, a son and a daughter.Gary R. Kabureck
  37. 37. Financial executive compensation survey 35Michael (“Mike”) McNamara is the ultimate professional inhis work, as well as in his dedication to his colleagues, familyand to the success of Financial Executives International,through his local chapter and the national organization. He isa man of significant achievement in serving as Vice PresidentFinance, Secretary and Treasurer for Tom’s Quality Millworkand Hardwoods Inc. in Campbellsport, Wis., as well as in hisservice to FEI’s Northeastern Wisconsin Chapter. When thesubject of FEI member recruitment comes up, the name MikeMcNamara comes to mind.Born and raised in Wisconsin, McNamara has spent hisentire academic and professional career there. He graduatedmagna cum laude from the University of Wisconsin – Oshkoshin 1973 with a Bachelor of Business Administration Degreein Accounting, became a certified public accountant and hasbeen the financial officer for several small-to-midsized, family-owned firms. He also spent four years with Grant ThorntonLLP and served two tenures with Mercury Marine, a businessunit of Brunswick Corp.He joined the Northeastern Wisconsin Chapter of FEI in2002 and became its president in 2007. He continues to serveon the chapter’s Board of Directors and Executive Committee,as well as on several other committees. It was during hispresidency that he became involved in recruiting new membersand remains the chapter’s Membership Chair.McNamara’s passion for FEI is evidenced by the key rolehe has played in helping his chapter more than triple in size— from 62 members in 2003 to 210 currently. The chapterhas won the Membership Development Award for the last sixyears in a row, as it leapt from a tier-two (50-99 members) totier-four size (200-299 members) chapter.Congratulations from the FEI Northeastern Wisconsin Chapter!McNamara has been involved with FEI at the national aswell as at his local level. He has served in leadership roles in theMidwest Area under the prior governance structure, becomingMidwest Area Vice President, and he’s completing his finalyear on the National Board of Directors. With this windingdown, he has already expressed his interest in having more timeto recruit for his Northeastern Wisconsin Chapter, noting that300 members is a strong possibility.McNamara and his wife Loula, who were high schoolsweethearts, have two married children and five grandchildren.Financial Executives InternationalDistinguished Service Award RecipientMichael P. McNamara
  38. 38. 36 Financial executive compensation surveyRobert L. Shultz says he is currently in, what he terms,“active retirement” after 30 years of service with Hewlett-Packard Co. (1982-2011), retiring as Vice President, Finance.He now supports both community and professionalorganizations, as well as performing as an adviser to HP’s largeshared services organization.An active member in the Colorado Chapter of FinancialExecutives International (FEI), Shultz also has spent countlesshours with peers at the national level of the organization(since becoming a member in 2005), providing his expertiseand leadership serving on various committees at the local andnational levels.Among his service to FEI over his years of membership,Shultz has served on and chaired FEI’s Committee on Financeand Information Technology (CFIT). In addition, he has heldpositions on other FEI boards and committees. Among them:the National Chapter Leadership Council (National AuditChair 2009-2011); the Board of Directors (serving as NationalSecretary since 2011); the Audit Committee (Chair 2009-2011);and as a member of the Committee on Governance, Risk &Compliance (CGRC).In his prior role as VP of Strategy for HP EnterpriseServices, Shultz was responsible for the Enterprise Services’Strategy and Transformation team, a $25 billion businesssegment of HP that provides IT and business processoutsourcing (BPO) services as well as application developmentand management services. Prior responsibilities at HP includedChief Internal Auditor, General Manager of HP’s BusinessProcess Outsourcing and General Manager of Global BusinessServices (Shared Services). He was also Deputy CorporateController responsible for enterprise planning and reporting,consolidations, external reporting, financial systems, enterpriseprocurement and country controllerships worldwide.Financial Executives InternationalDistinguished Service Award RecipientCongratulations from the FEI Colorado Chapter!Additionally, he was business unit CFO of the EnterpriseSystems Group.Shultz holds a Bachelor’s Degree in Accounting fromLehigh University and a Master of Business Administrationfrom Pennsylvania State University. He currently resides inColorado with his wife of 35 years, Suzy, who he met whenthey were both Peace Corps volunteers in Botswana. Theyhave two daughters, one is married and one is getting marriedthis June.Robert L. Shultz
  39. 39. © 2013 Grant Thornton LLPAll rights reservedU.S. member firm of Grant Thornton International LtdContent in this publication is not intended to answerspecific questions or suggest suitability of actionin a particular case. For additional information onthe issues discussed, consult a Grant ThorntonLLP client service partner or another qualifiedprofessional.Copyright © 2013 by Financial Executives Research Foundation, Inc.All rights reserved. No part of this publication may be reproduced in any formor by any means without written permission from the publisher.The views set forth in this publication are those of the author and do not necessarily represent those of the FERFBoard as a whole, individual trustees, employees or the members of the Advisory Committee. FERF shall beheld harmless against any claims, demands, suits, damages, injuries, costs or expenses of any kind or naturewhatsoever except such liabilities as may result solely from misconduct or improper performance by FERF or anyof its representatives.International Standard Book Number 978-1-61509-115-7Printed in the United States of AmericaFirst PrintingAuthorization to photocopy items for internal or personal use, or the internal or personal use of specific clients,is granted by FERF provided that an appropriate fee is paid to Copyright Clearance Center, 222 Rosewood Drive,Danvers, MA 01923. Fee inquiries can be directed to Copyright Clearance Center at (978) 750-8400. For furtherinformation please check Copyright Clearance Center online at http://www.copyright.com.

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