With CFO Staying Power at an All-Time Low, Pay Reaches an All-Time High
Average CFO pay—including salary, bonuses, stock awards, and options—climbed from $2.4 million in 2016 to $3.5 million in 2021.
The Datarails study reveals that, from 2016 to 2021, CFOs had the lowest level of job security among all C-suite executives. This finding is based on corporate filings for 2,056 companies in the United States.
CFOs at the biggest U.S. companies lasted an average of only 3.51 years in that post, compared with:
- CEOs—3.89 years
- General counsel—4.50 years
- Chief marketing officers—4.63 years
- Chief technology officers (recording the highest staying power)—4.64 years
Of the 2,000-plus companies studied, 56 percent experienced at least one CFO turnover in the five-year span, and 16 percent experienced more than one turnover in the CFO position. At least 87 of the 2,056 companies analyzed saw a high-profile CFO shakeup.
But while CFOs have lived through unprecedented economic challenges in the past few years, their pay has steadily increased to meet (or exceed) this burden. Average CFO pay—including salary, bonuses, stock awards, and options—climbed from $2.4 million in 2016 to $3.5 million in 2021, a 40 percent increase. CFO stock awards jumped to 63 percent of overall compensation in 2021, up from 53 percent in 2016. As the study indicates, pay continues to shift toward stock awards and away from salary, bonuses, and stock options.
The CFO has emerged in recent years as second only to the CEO in responsibility and accountability for the business’s performance. The intense pressure on CFOs impacts their tenure in the role. According to current figures, the CFO is the most likely to exit the company compared with any other C-suite colleague.
From: BenefitsPRO