Given the high incomes that CFOs make, you may be wondering exactly how much a top CFO is worth in 2020. Although the average annual salary of a CFO can vary depending on many factors, we believe that a top CFO for a company with revenue of $500 million+ is worth $350,000-$580,000 with an average bonus of 60%. Find out which factors justify these numbers and exactly how a CFO benefits an organization. For help finding top CFO candidates, contact Alliance Resource Group, Manhattan Beach’s leading Accounting and Finance Recruitment Agency.
Salary, Benefits, and Perks of a CFO
A variety of factors impact the salary of a top CFO. Geographic location, experience and personal qualifications are among the leading influencers. The base salary makes up approximately 70% of total compensation in one year. Other areas of compensation include bonuses, benefits, and perks. Typical benefits include social security, 401(k), disability insurance, healthcare, pension and paid time off. Perks may include a company car or driver, dedicated parking space, significant severance package, relocation expenses, large office, private bathroom, use of a private jet or helicopter or first-class flights.
CFO Responsibilities
A CFO typically is responsible for budgeting, financial goal setting, and related financial statement construction, review and other reporting. They handle increasingly complicated finances, accounting and bookkeeping. Â A CFO navigates the complexity of cybersecurity, advanced technology, and regulatory compliance. They oversee banking relationships, manage risks and protect against disruption. A CFO manages big data, embraces artificial intelligence and handles data analytics. They ensure all financial matters are closely examined and controlled, including everything from company expenditures to how day-to-day business operations impact revenues and profits.
CFO and Business Strategy
A CFO contributes to executive-level decision-making and overall strategy. They provide valuable insight into whether ideas are feasible or alternatives are more sensible. The CFO might lead the finance department, IT team and operations department in a smaller business. In a larger company, they might be in charge of only the company’s finances. In some cases, the CFO may oversee the controllership. They analyze the company’s financial position and report to key stakeholders like the board of directors. If the CFO oversees the treasury, they’re responsible for looking at the company’s present financial condition, including effective management of cash flow and overhead expenses, and establishing credit terms for customers and more favorable payment terms from vendors. If the CEO oversees economic strategy and forecasting, they plan the company’s financial future by finding and reporting which areas are most effective and how the organization can use this information to its advantage.
Download the Alliance Resource Group 2020 Salary Guide
Download the Alliance Resource Group Financial Salary Guide and Employment Outlook to find out more about how much a top CFO is worth in 2020. Gain additional insight and information into other information regarding the accounting and finance industry in Orange County and L.A. Then, set up a time to talk with us about filling your staffing needs.