CFO Turnover & Rising Finance Chief Pay
- Chief financial officer compensation continues to rise, fueled by high turnover and strong demand.
- Malafis of CAP noted that as companies grapple with challenges like cybersecurity and AI implementation, CFOs are playing a more central role.
- In 2024, notable CFO hires included Anat Ashkenazi moving from Eli Lilly to Alphabet, Sarah Friar joining openai, and Karen Parkhill transitioning from Medtronic to HP.
CFO compensation is on teh rise, driven by high turnover and strong demand, making it a key area to watch. The expanding role of the CFO, notably in navigating cybersecurity and AI implementation, is fueling this increase. News Directory 3 reports that experienced financial leaders are highly sought after, with salary increases outpacing those of CEOs in some cases. The shift underscores the strategic importance of the chief financial officer.Explore the long-term incentive trends shaping CFO remuneration and the impact of moves within Fortune 500 companies. Discover how these financial leaders are adapting to emerging challenges and what strategies are being implemented. Stay informed about these significant shifts in the financial landscape. Discover what’s next …
CFO Compensation Trends: Cybersecurity and AI Impact
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Chief financial officer compensation continues to rise, fueled by high turnover and strong demand. According to Compensation Advisory Partners (CAP), the CFO’s role as a strategic partner is driving higher pay amid retirements and departures.
Malafis of CAP noted that as companies grapple with challenges like cybersecurity and AI implementation, CFOs are playing a more central role. Organizations seek finance chiefs who possess core finance expertise and the skills to navigate these emerging issues.
In 2024, notable CFO hires included Anat Ashkenazi moving from Eli Lilly to Alphabet, Sarah Friar joining openai, and Karen Parkhill transitioning from Medtronic to HP. These moves highlight the demand for experienced financial leaders.
CAP’s analysis revealed that CFOs who received a salary increase saw a median bump of 5.7%, compared to 4.1% for CEOs. The firm anticipates CFO salary increases will remain steady.
long-Term Incentive Trends
While CEOs still lead in total compensation, CFO compensation averages about 33% of CEO pay, CAP data shows. The median tenure for these positions is around seven years, which resets compensation expectations, according to CAP Principal Roman Beleuta.
Beleuta also noted a trend in long-term incentives (LTIs) at public companies. Fewer companies now use all three vehicles-time-vested restricted stock,performance-vested stock,and stock options-compared to five years ago.
Performance-based equity plans remain the largest component of LTIs for both CFOs and CEOs. In 2024, LTI awards increased by an average of 7% for CFOs and 5% for CEOs.Bonus payouts also rose, with CFOs seeing a 5% increase compared to 2.6% for ceos.total direct compensation increased 6% for cfos and 3.5% for CEOs, primarily due to higher long-term incentive awards.
with the demand for skilled finance chiefs on the rise,CFO compensation is expected to remain strong.
Fortune 500 Power Moves
jesus “Jay” Malave was appointed EVP and CFO of Boeing, effective Aug. 15. Brian West, the previous CFO, will become a senior advisor. Malave previously served as CFO of Lockheed Martin and L3Harris Technologies.
More Notable Moves
pierre Revol was appointed CFO of FrontView REIT, Inc., effective July 21. revol brings over 20 years of experience,most recently as SVP of capital Markets at CyrusOne.
Marc Grasso was appointed CFO of Kyverna Therapeutics, Inc., effective June 30. Grasso has over 25 years of experience and previously served as CFO of Alector, Inc.
AI Strategy Gap
Thomson Reuters’ 2025 future of Professionals report reveals a gap between organizations with and without formal AI strategies. The report found that organizations with a defined AI strategy are more likely to report revenue growth and realise AI benefits.
Despite these advantages,only 22% of respondents say their organizations have a clear AI strategy,potentially risking competitive growth.
Private Equity and Tariffs
A Wharton business journal report indicates that tariff disruptions offer private equity investors opportunities to acquire undervalued assets but also challenge their reliance on predictable earnings.