On average, finance professionals saw a 4.4 percent increase in their base salaries in 2023, according to results from the "2024 AFP Compensation and Benefits Survey Report." This is lower than the average 2022 increase of 5 percent, but it is similar to the average pay increase for finance professionals in 2021 (4.3%).

The talent shortage and Great Resignation drove companies to offer higher salaries in 2022, for both recruitment and retainment purposes. In 2023, hiring managers continued to face challenges filling skilled positions like those in finance. At the same time, however, high interest rates increased pressure on employees to stay put. Fear of a potential recession—which would, necessarily, bring layoffs—likely contributed to last year's reduction in the rate of increase in respondents' base salaries.

Additionally, survey respondents listed the following factors as influencers of their salaries:

• Those with advanced degrees earn 10 percent to 17 percent more annually than those with only a bachelor's degree or less.
• Those who hold the CTP or FPAC certification from the Association for Financial Professionals (AFP) make 2 percent to 15 percent more annually than those without the certifications. The greatest difference is seen in middle management.
• Differences in the cost of living across regions often account for salary variances. The survey report analyzed salaries based on respondents' employment in the four regions defined by the U.S. Census Bureau—Northeast, South, Midwest, and West—as well as a virtual region. Among the four geographic regions, workers in the Northeast command salaries 7 percent higher than those in the Midwest, the region with the lowest average base salaries. But this trend tends to even out across high-cost cities—for example, those working in Chicago command higher salaries even though they reside in the Midwest.
• Salaries vary widely between industries, with those in the government/nonprofit sector making the least and those in technology services making the most—an average of 22 percent more than government and nonprofit workers, in fact.
• Finance professionals working for an organization with annual revenues of at least $1 billion earn, on average, 20 percent more than those working for an organization with annual revenues of less than $100 million.

For many finance professionals, bonuses are a key component of the compensation package. Our survey revealed that, in 2023, 68 percent of organizations granted bonuses, down 2 percentage points from 2022. Of those that did grant bonuses, 89 percent awarded cash bonuses, while 41 percent awarded stock options. Another 26 percent of survey respondents reported receiving profit-sharing incentives; 22 percent receive recognition/non-cash incentives; and 16 percent receive a retention bonus.