2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and...
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![Page 1: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/1.jpg)
2007 Financial 2007 Financial Executives Executives
Compensation SurveyCompensation SurveyCheryl Graziano
Vice President of Research and OperationsFinancial Executives Research Foundation
![Page 2: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/2.jpg)
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
![Page 3: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/3.jpg)
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
![Page 4: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/4.jpg)
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
![Page 5: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/5.jpg)
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%
![Page 6: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/6.jpg)
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).
![Page 7: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/7.jpg)
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
![Page 8: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/8.jpg)
Private Company Job Responsibilities
90% 92%78%
88%
44%37%
46%59%
45%
76%
24%
![Page 9: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/9.jpg)
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
![Page 10: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/10.jpg)
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%
![Page 11: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/11.jpg)
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
![Page 12: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/12.jpg)
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
![Page 13: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/13.jpg)
Public Company Job Responsibilities
61%
82%
52%
70%
15%
34%25%
32%23%
45%
![Page 14: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/14.jpg)
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
![Page 15: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/15.jpg)
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%
![Page 16: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/16.jpg)
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
![Page 17: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/17.jpg)
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
![Page 18: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/18.jpg)
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%)
![Page 19: 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation.](https://reader036.fdocuments.net/reader036/viewer/2022082820/56649e705503460f94b6d67c/html5/thumbnails/19.jpg)
Questions?• Suggestions for follow research
on this project?• Suggestions for other types of
research?