Examines Salaries, Bonuses, Long-term Incentives, Benefits
FLORHAM PARK, N.J., May 21 /PRNewswire-FirstCall/ -- Financial
Executives Research Foundation (FERF), the research affiliate of Financial
Executives International (FEI), will launch today results of its first
annual executive compensation study at FEI's 2007 Summit in Boston.
The study examined the salaries, bonuses, long-term incentives and
retirement benefits of over 1,800 financial executives, over half of which
are CFOs. Notably, the survey was completed by the financial executives
themselves, rather than human resources executives or executive search firm
executives. Hereafter this study will be conducted on an annual basis to
allow for year-to-year compensation comparisons.
"We are excited to release the 2007 Financial Executives Compensation
Study, and believe that the results will serve as a valuable empirical
benchmark for senior financial executives and Boards of Directors," said
FEI CEO and President, Michael P. Cangemi. "By interviewing our members --
senior financial executives themselves -- we went directly to the source to
provide data for this unique report."
SALARY: On average, the base salaries of public and private company
CFOs were proportionate to the annual revenues of their employers.
CFO Median Base Salary Ranges
Co.=<$25 mil. Co.=>$ 10 bil.
All annual revenue annual revenue
Public $251-275,000 $176-200,000 >$401,000
Private $176-200,000 $126-150,000 $301-350,000*
BONUSES: The study found that annual bonuses of public companies were
proportionate to the annual revenues of their employers, and those of
private company CFOs were somewhat proportionate.
CFO Median Target Award (Percentage of Base Salaries)
All indicating
specific %
target bonus Co.=<$25 mil. Co.=>$ 10 bil.
award annual revenue annual revenue
Public 41-50% 31-40% 91-100%
Private 31-40% 21-30% 51-60%*
* Note: Only one private company corporate CFO responded whose company had
annual revenues of over $10 billion
"Financial executives will find the study to be a useful tool in
benchmarking their own compensation," said FERF's Vice President, Research
and Operations, Cheryl de Mesa Graziano. "Recognizing that salary and bonus
alone do not paint a full compensation picture, we also examined other
areas such as benefits and long-term incentives to compile a comprehensive
body of information."
BEYOND THE PAYCHECK
The study explored the value and structure of pay packages in their
entirety. Key statistics from areas additional to salary and bonus include:
Retirement
* A minority of respondents (21 percent) are eligible for their company's
defined benefit plan
* Even less (8 percent) have supplemental defined benefits or supplemental
defined contribution plans (9 percent)
* The majority (77 percent) are not entitled to receive additional monthly
retirement benefits
Long-term incentives
* 23 percent receive cash-based awards (split between public and private
companies)
* 60 percent received stock-based awards
Perks
* Most popular perk is company car or car allowance (34 percent)
* Least popular perk is housing or other living expenses (2 percent)
Performance measures
* Most common performance measures used to determine annual compensation
were company and individual goals and objectives
-- Company Goals/Objectives (86 percent of public company respondents)
-- Individual Goals/Objectives (80 percent of public company
respondents)
The report includes detailed tables of the base salary and annual bonus
for each major title, and is broken down further by company's annual
revenue and public or private status. To purchase the survey report for
$129.00, visit the FERF bookstore online at http://www.ferf.org/bookstore
About FEI
Financial Executives International is the leading advocate for the
views of corporate financial management. Its 15,000 members hold
policy-making positions as chief financial officers, treasurers and
controllers. FEI enhances member professional development through peer
networking, career management services, conferences, teleconferences and
publications. Members participate in the activities of 85 chapters, 74 in
the U.S. and 11 in Canada. Visit http://www.fei.org for more information.
Financial Executives Research Foundation (FERF) is the non-profit 501
(c)(3) research affiliate of FEI. FERF researchers identify key financial
issues and develop impartial, timely research reports to FEI members and
non- members alike, in a variety of publication formats.
SOURCE Financial Executives International
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Related links:
http://www.fei.org
http://www.ferf.org/bookstore
CONTACT:
Kristen Crofoot, of FD for FEI,
+1-212-850-5692, kristen.crofoot@fd.com, or Chris Allen of FEI,
+1-973-765-1058, callen@fei.org
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