By Shawn Cole, President Cowen Partners Executive Search
A chief financial officer (CFO) is a pivotal position within a company. A CFO is responsible for managing accounting and finance departments as well as overseeing the business’s financial operations. This role also ensures the company is compliant with all applicable laws and business policies. In addition to working with a company’s financial department, the CFO works closely with the company CEO to make wise investments and to cut costs where necessary.
Managing a company’s financial portfolio is no simple task, which is why CFOs usually take a professional path that includes advanced degrees. A majority of CFO applicants tend to have a master’s in finance or accounting. Of course, an extensive education isn’t the only requirement to become a leading CFO. Experience is another necessary requirement. To become a CFO, candidates typically start in entry-level accounting roles and gradually work their way up over the course of several years into leadership positions. Most CFOs have 10 or more years of business experience under their belts before they achieve the senior executive role of CFO.
Considering the experience required of the role as well as the hefty job responsibilities, compensation for CFOs needs to be competitive. The average salary of a CFO is dependent on a number of factors. Geographic location and experience, for instance, are two significant factors that will impact the overall salary of your CFO. Perks, benefits, and other compensation avenues are other important elements to keep in mind when determining a suitable salary.
Cowen Partners is a national CFO search firm, driven to create value for our clients, and we have a long-standing record of placing exceptionally qualified Chief Financial Officers across all industries.
Our President and Founding Partner, Shawn Cole, is a thought leader on the “modern CFO” and one of the few executive recruiters who contribute to national publications, including Forbes, CFO.com, IPOHub, and CFO Dive.
One very important factor is CFO salary vs total CFO compensation. Total compensation for CFOs includes things like bonuses and stock options.
The Wall Street Journal reported in Nov 2019 that the highest paid CFO’s are as follows.
Highest paid CFO Safra Catz, Oracle Corp., $108.3 million.
The average salary for private company CFOs varies by the company’s annual revenue, as the table below shows. Note: private company CFO salaries tend to be about 45% lower than public company CFO salaries.
Company’s Annual Revenue | Average CFO Salary in a Private Company |
$20M | $194,354 |
$21M to $99M | $237,983 (or $223,000 to $275,000 with benefits and bonuses) |
According to Salary.com the median base salary for a CFO in the United States is $362,030, and the median total compensation package (including bonus, healthcare, and retirement) is $506,386.
The salary range varies widely depending on location. For instance, a CFO in Keya Paha, Nebraska, near the South Dakota border, will expect the lowest salary in the country at $284,250 and a compensation package totaling $354,259. An average CFO in San Francisco, however, will ask for nearly double that salary at $451,070 and total compensation of $724,006.
As a frame of reference, that median base CFO salary in the US of $362,030 would be $174/hour.
A 2015 survey by Jobvite indicates that while average jobs are filled in 43 days, it takes an average of 71 days to fill a C-level position and 76 days for a position with “director” or “vice president” in the title.
Many companies take their time with the recruiting process and opt for an interim CFO service so that they are not rushed into a bad decision.
Cowen Partners average time to a candidate is 38 days
You can also get answers and information right now from one of the nation’s top CFO recruiters.
Chief Financial Officer CFO Job Description
We are an equal opportunity employer and all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, disability status, protected veteran status, or any other characteristic protected by law.
Cowen Partners is a national executive search firm specializing in CFO searches. We have put together 100+ of the best CFO interview questions so that you can be confident in your hiring decision.
Management roles vary by organization, depending on a company’s history, the characteristics of its industry, and the demands of investors. And although fitting CFOs into a clear-cut typology may seem artificial, we found it useful to understand how companies are filling the role to get a clearer picture of how it’s changing. Based on our research, we categorize CFOs into four general profiles.
The nationally renowned CFO recruiters at Cowen Partners have deep experience working with private, public, pre-IPO, and non-profit organizations. Clients are typically $50 million in revenue to Fortune 1000’s or have assets between $500 million to $15 billion.
Through our proven retained executive search process, Cowen Partners delivers 3X more qualified candidates than the competition. In fact, we find, vet, and deliver the top 1% of candidates for CFOs across all industries, including financial services, credit unions, tax and accounting services, private equity, technology, healthcare, manufacturing, retail, real estate, and more.
Cowen Partners is proud to be the nation’s top CFO search firm, driven to create maximum value for our clients.
Read more of our industry-leading retained search resources to see why Cowen Partners is a top CFO search firm in Anchorage, Boston, New York City, Chicago, Seattle, Atlanta, St. Louis, Milwaukee, Dallas, Los Angeles, and beyond:
Cowen Partners Executive Search provides CFO recruitment services to all major and minor industries including:
Accounting, Advertising, Aerospace & Defense, Biotechnology, Banking, Credit Unions, Board and CEO Services, Computer Hardware, Construction, Consulting, Consumer Products, Computer Software and Hardware, Education, Energy & Utilities, Entertainment & Sports, Finance, Financial Services, Food Products, Government, Human Resources, Health Care, Hospitality & Tourism, Insurance, Industrial, Internet & New Media, Legal, Tax, Crypto, Bitcoin, Private Equity, Journalism & Publishing, Marketing, Manufacturing, Medical Device, Non-Profit, Pharmaceutical, Private Equity, Real Estate, Retail & Apparel, Sales, Technology, Telecommunications and Transportation.
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