2007 Financial 2007 Financial Executives Executives

Compensation SurveyCompensation SurveyCheryl Graziano

Vice President of Research and OperationsFinancial Executives Research Foundation

Financial Executives Research Foundation (FERF)

• Who we are:– The independent research affiliate of FEI.

• What we do:– Help members learn from other members.

• How we do it: – Tax-deductible contributions from

corporations, FEI chapters and individuals.– Research publication sales/subscriptions

Financial Executives Research Foundation (FERF)

What we offer: – We help FEI members learn from other members– Financial Executives List Exchange (FELIX) – ask

your peers about topics such as Internal Control Procedures, Tax Preparation and Audit Fees for Private Companies, FAS 123R, Asia and China Telecom Challenges, and more

– Research Forum Newsletter – Financial Executive magazine articles– Research reports, alerts, surveys– Continuing professional education credits – All accessible from the FEI website as part of FEI

membership

The Survey

• Electronic survey e-mailed to 9,062 active FEI members

• Members were asked 27 questions in five key areas:– Demographics,– Compensation,– Long-Term Incentives,– Retirement Benefits, and – Other Compensation Benefits.

• 1,844 members responded (20% response rate

Respondent ProfileRespondent Profile - Title and Company Type Number of Responses by Company Type

Public

Private

Nonprofit

Government

Grand Total

Title Corporate CFO 306 554 41 15 916 50% VP Finance 89 87 8 1 185 10% Corporate Controller 125 97 5 1 228 12% Treasurer 43 19 3 65 4% Divisional/Geographic/Regional CFO

64 15 4

83 5%

Divisional/Geographic/Regional Controller

41 12 2

55 3%

Other, please specify 174 123 13 2 312 17%

Grand Total 842 907 76 19 1,844 100%

46% 49% 4% 1% 100%

Industry andLocation of Company

Headquarters• Almost one third (32% or 598) of the

responses came from members from three industries: Banking/Financial Services, Manufacturing and Technology.

• Many responses (42% or 771) came from members who worked for companies headquartered in:– California (15% or 275), – Illinois (6% or 110),– Massachusetts (7% or 121),– New York (6% or 110), and – Texas (8% or 155).

60%

11%

2%

1%

14%

2%

10%

Private Company Titles

907 responses = 49% total

Corporate CFO

Corporate Controller

Divisional CFO

Treasurer

Other

VP Finance

Divisional Controller

Private Company Job Responsibilities

90% 92%78%

88%

44%37%

46%59%

45%

76%

24%

Private Company CFO

• Compensation proportionate to the annual revenues of their employers

• Median annual base salary is in the $176,000 to $200,000 range

• Median annual bonus target is between 31 and 40% of base salary

• CFO oversees a median of 10-50 finance/accounting employees or FTEs

• 554 responses

Private Company – CFO “Direct Reports”

Median Compensation• Corporate and Divisional

Controllers $100,000 – 125,000• VP Finance and Divisional CFO

$126,000 to $150,000 • Treasurer $151,000 – 175,000• PLUS ++ Annual Bonus Target of

21-30%

Private Company Financial Executives California

• CFO state median = national median– Annual base salary range $176,000 to

$200,000 plus 31 and 40% bonus (78 CFOs)

• Other titles state medians > national medians– Corporate Controllers at $126 to 150K

salary– VP Finance at $151 to 175K salary

Public Company Titles

35%

15%8%5%

21%

5%

11%

842 responses = 46% total

Corporate CFO

Corporate ControllerDivisional

CFO

Treasurer

Other

Divisional Controller

VP Finance

Public Company Job Responsibilities

61%

82%

52%

70%

15%

34%25%

32%23%

45%

Public Company CFO

• Compensation proportionate to the annual revenues of their employers

• Median annual base salary is in the $251,000 to $275,000 range

• Median annual bonus target is between 41 and 50% of base salary

• CFO oversees median of 10-50 finance/accounting employees or FTEs

Public Company – CFO “Direct Reports”

Median Compensation• VP Finance, Corporate Controller,

Divisional CFO all earn $176,000 to $200,000 PLUS ++ Annual Bonus Target of 31-40%

• Treasurer $176,000 to $200,000 PLUS Bonus of 41-50%

• Divisional Controller $126,000 to $150,000 PLUS Bonus of 21-30%

Public Company Financial Executives California

• CFO state median = national median– Annual base salary range $251,000 to

$275,000 plus bonus between 41 and 50% (56 CFOs)

• Other titles state medians > national medians– Corporate Controllers at $176 to 200K

salary– VP Finance at $226 to 250K salary

Long Term Incentives

• 409 members (split between public and private companies) receive cash-based awards

• 1,096 received stock-based awards– 665 based on fixed number of shares

in options or restricted units– 309 also get dividends

Retirement and Other Perks

• 384 are eligible for defined benefit plan (60% from public cos.)

• 148 have supplemental db plan • 171 have supplemental defined

contribution plan• Most popular perk: Company car or car

allowance (578 responses or 34%) • Most popular employment contract

provision: Change-in-control/severance (604 or 35%)

Questions?• Suggestions for follow research

on this project?• Suggestions for other types of

research?

Stay in Touch

Cheryl GrazianoVice President Research and

OperationsFERF(973) 765-1064cgraziano@fei.org