Search
 
Best Practices

Pay Pressures Play Both Ways

Compensation for CFOs at big companies holds up better than expected, but the ups and downs generated by complex, countervailing trends are likely to continue in 2010.

By Anne Field | Updated on May 01, 2010

It was a year of layoffs and austerity, of high unemployment and outrage over executive pay. So in 2009, CFO compensation could be expected to fall, right? But last year also saw increases in corporate profits and GDP growth, not to mention an unexpectedly strong stock market rebound. As a result, despite all the bad news, connecting the dots on last year’s trends in compensation shows an erratic sense of direction. And though there’s talk of increases across the board in everything from salaries to the value of long-term stock awards, complex factors could yield surprises in 2010 as well.

Whether overall compensation increased or declined last year is open to debate. Treasury & Risk commissioned a study of the 2009 compensation of 50 Fortune 500 CFOs from Equilar, a Redwood Shores, Calif.-based executive compensation research firm. The study showed median total compensation rose 5% to $4.8 million, from $4.5 million in 2008, but a closer look revealed that results were down in each pay category. For example, the median salary dropped 5.8% to $655,000, while the value of option awards fell 14.7% to $631,801 and stock awards declined 19%.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.