In 2024, the median base salary increase for CFOs was 4%, while CEOs saw no change—mirroring 2023. In 2022, median base salary increases were 3.8% for CFOs and 2.9% for CEOs.
“We were expecting salary increases to start shifting downward, given the labor market,” Kelly Malafis, founding partner at CAP told me. “But salary increases are likely to remain steady for CFOs.”
Although CFOs are currently seeing greater salary increases than chief executives, CEOs still lead in total compensation, according to CAP data. Over the past decade, CFO total compensation has averaged about 33% of CEO compensation, the firm’s research shows. The median tenure for these positions is typically around seven years, said Roman Beleuta, principal at CAP. “Every time there’s a reset, you’re kind of resetting the bar again,” he explained. “That’s why that ratio stays at about a third.”
At public companies, long-term incentives (LTIs) for executives are usually delivered through time-vested restricted stock, performance-vested stock, or stock options. “One trend we’ve highlighted is the reduction in the number of companies using all three vehicles,” Beleuta said. Five years ago, 33% of companies surveyed used all three, compared to just 22% today.
Performance-based equity plans remain the largest component of LTIs for both CFOs and CEOs. LTI awards increased an average of 7% for CFOs and 5% for CEOs in 2024. Over the past decade, LTI awards have grown by an average of 6% annually for both roles.
Bonus payouts in 2024 rose 2.6% for CEOs and 5% for CFOs in 2024. Total direct compensation increased 3.5% for CEOs and 6% for CFOs, mainly due to higher long-term incentive awards.
With demand for skilled finance chiefs rising, CFO compensation is expected to remain strong.
