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Despite Slowing Economy, Compensation Growth for Financial Professionals Above National Average in 2007
July 22, 2008
According to the Association for Financial Professionals’ (AFP’s) 2008 Compensation Report, compensation for financial professionals in 2007 outpaced that of the national workforce as a whole, continuing the trend of past years. Financial professionals reported an average annual salary increase of 4.5 percent – more than 36 percent higher than the national average – and bonuses averaged 15 percent of their base salaries.
"AFP’s 2008 Compensation Report shows that treasury and financial professionals saw salary increases that were significantly higher than national workforce averages," said Jim Kaitz, President and CEO of AFP. "Treasury and financial professionals at all levels are delivering great value to organizations. They are demonstrating analytical and strategic decision-making skills; the desire to earn advanced certifications and degrees; and the desire to move their careers forward and work hard to make organizations succeed."
Between January 1, 2007 and January 1, 2008, executive level financial professionals received the highest percentage increases in base salaries among all categories of treasury/finance professionals and staff. On average, executive level financial professionals garnered a 5.1 percent salary increase during the 12-month period studied.
The average increase for management positions was 4.8 percent, with the Manager of Treasury and Finance position receiving the highest salary increase – 6.6 percent (See Average Compensation Table below). Staff level financial professionals averaged salary increases of just below four percent.
The 2008 survey also reported that bonuses could add significantly to a financial professional's total compensation package. On average, financial professionals received bonuses equivalent to 16 percent of their base salary in 2007. Executive level financial professionals received the largest average bonuses (both in total dollars received and as a percentage of their base salary), while support level staff received the smallest average bonuses.
2008 Sample Average Compensation by Job Title
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|
2007 Base |
2007 Bonus |
2007 Total |
2008 Base |
% Base Salary Increase |
|
CFO |
$177,500 |
$60,700 |
$221,200 |
$185,700 |
4.6% |
|
VP of Finance |
$162,400 |
$51,600 |
$206,100 |
$171,500 |
5.6% |
|
Treasurer |
$153,900 |
$61,900 |
$206,700 |
$161,500 |
4.9% |
|
Director Treasury/Finance |
$117,000 |
$27,800 |
$142,400 |
$123,300 |
5.4% |
|
Manager Treasury/Finance |
$91,300 |
$15,100 |
$103,700 |
$97,300 |
6.6% |
|
Asst. Treasurer |
$118,700 |
$31,800 |
$146,400 |
$124,800 |
5.1% |
|
Cash Manager |
$69,700 |
$8,600 |
$77,300 |
$73,200 |
5.0% |
*% Base salary calculated only for records with both 2007 and 2008 base salary
Data from the survey also suggests that there are substantial salary differences between those professionals with advanced degrees and those without. On average, professionals with an MBA earn an average salary 19 percent higher than do their counterparts who hold just a bachelor’s degree. Other factors cited in the survey that determine salary compensation included:
-
Increased Job Responsibility
-
Certifications such as the CTP, CPA, CIA or CFA
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Contribution to Profitability
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Job Location
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Type of Industry
An Executive Summary of AFP's 2008 Compensation Report is available at www.AFPonline.org/research.
About the Survey
In February 2008, the Association for Financial Professionals (AFP) conducted its 20th annual compensation survey. The results of this survey were aggregated and the findings are published in this report. Compensation information from 26 finance, treasury, and accounting positions were measured by job title, education, geographic region, industry, company size, gross revenue and years of experience. The report also presents analysis on pay structures, documents general compensation trends for the finance profession, and includes job descriptions for the 26 positions. Data was collected from over 5,000 incumbents in over 2,000 companies reflecting a diverse respondent base with fairly evenly distributed demographics.
About AFP®
The Association for Financial Professionals® (AFP) is a membership organization that serves more than 16,000 corporate treasury and finance executives. In addition to its Annual Conference, the Association offers executive resources, industry news, financial tools, networking opportunities, continuing education, print and online publications and public policy research representation. AFP is headquartered in Bethesda, Maryland, and its global reach includes AFP of Canada and gtnews, a London-based on-line resource for the finance community. AFP strives to be a daily resource for strategic solutions, best practices and peer collaboration: AFP–Your Daily Resource at www.AFPonline.org.
Copyright © 2008 Association for Financial Professionals. All Rights Reserved.
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