How Much Do Cfos Make

Driven-Insights_average-cfo-salary

What's the average Chief Financial Officer (CFO) salary in the U.s. in 2022? Well, that depends on the size of your business organisation and whether your business is located in Keya Paha, Nebraska (lowest bacon) or San Francisco, California (highest salary).

We'll give some specific numbers below, but showtime, we desire to provide some advice on a topic which may play into how much you pay a CFO.

Whether you lot bring in a full orpart-time CFO, try to discover someone with an understanding of your industry and growth phase as a company. Each industry has its quirks. Someone with an intimate knowledge of your niche can save you a lot of headaches, fourth dimension, and coin by anticipating trends and helping you develop strategies in response to those trends.

If your company is in one of the early phases like finding product/market fit, wait for a CFO with experience in that stage rather than someone who has worked in larger, mature corporations.

If you accept to go with someone outside of your industry or electric current growth phase, adjust your pay rate accordingly. In other words, if the CFO is going to accept to learn on the job, this person won't exist quite as valuable as someone with all-encompassing experience relative to your manufacture and growth stage.

The Average individual company CFO Salary in 2022

Co-ordinate to CFO.com, the average greenbacks compensation for a CFO in a private company with less than $20MM in almanac revenue is $194,354. CFOs for private companies with $21-$99MM in almanac revenue make an average of $237,983 in base salary. (Private visitor CFOs make 45% less than those at public companies.) Tack on benefits and bonus and you can look to pay $225,000 to $275,000 depending on business size.

THE AVERAGE Public Visitor CFO Bacon IN 2022

As a point of reference, it may be helpful to know what larger, public companies pay CFOs.

According to Salary.comthe median base salary for a CFO in the United States is $362,030, and the median total compensation package (including bonus, healthcare, and retirement) is $506,386.

The bacon range varies widely depending on location. For instance, a CFO in Keya Paha, Nebraska, nearly the S Dakota border, will await the lowest bacon in the land at $284,250 and a bounty package totaling $354,259. An average CFO in San Francisco, notwithstanding, will ask for nigh double that salary at $451,070 and total bounty of $724,006.

As a frame of reference, that median base of operations CFO salary in the US of $362,030 would be $174/hour.

What about pay increases?

What kind of pay increases will a CFO expect from year to yr? The Society for Human Resource Managementreported in January that:

In the United States, an average 3 percent pay increase is predicted by Korn Ferry, the same equally for 2017. Adjusted for the expected two percent inflation charge per unit in 2018, yet, the real wage increase is i percentage—down from last twelvemonth'southward 1.9 percent.

SHRM alsoreportedthat annual pay increases are the same for officers and executives every bit other salaried employees.

private COMPANY Finance squad member SALARies IN 2022

According to PayScale.com, the median compensation package for a small-scale business controller is $80,296. The complete range of salaries varies from $50,500 to $133,400 with influencing factors including company size and location.

As well from PayScale.com, the median bounty package for a small-scale business organisation bookkeeper is$forty,838 with a range of $25,102 - $54,434.

How long will the recruiting process for a CFO take?

A 2015survey past Jobviteindicates that while average jobs are filled in 43 days, it takes an average of 71 days to fill a C-level position and 76 days for a position with "director" or "vice president" in the championship.

Many companies take their time with the recruiting process and opt for anacting CFO serviceso that they are non rushed into a bad decision.

What size companies bring in full-time CFOs?

There are manifestly several variables which play into the size of businesses who have full-time CFOs, merely nosotros ofttimes see that companies start looking for an total-fourth dimension CFO when they achieve $35-50MM in almanac revenue.

Companies in the $500K to $50MM annual revenue range oftentimes opt for virtual orfunction-time CFO services. These outsourced CFO services are often available at a fraction of the cost of a full-fourth dimension CFO.

At Driven Insights, we provide remote CFO services for a number of companies in a wide range of markets. Our CFO-led services include controller and bookkeeping equally well so that you can outsource your entire finance department to keep things running efficiently and often at a much lower cost than an in-house team.

You can come across how those services are structured in the graphic below.

CFOPyramid8-20

Learn more about ouroutsourced CFO services.

BONUS: 27 CFO interview questions

As you begin your search to fill up the CFO role, whether function-fourth dimension or total, at that place are a few things to consider as y'all observe the correct fit for your company. We've talked to a lot of small business concern owners and CFO candidates, and we've documented 27 questions to help y'all pinpoint the best partner.

RESEARCH

1. What do you lot find most interesting almost financial management in the manufacture we're in? How about the almost challenging?

2. Given our current size and growth plans, what are the key challenges and opportunities nosotros'll face in the side by side six months? How virtually the adjacent two years?

REPORTING

3. Given our objectives, please walk me through the reporting package you would design and highlight how the insights information technology produces will inform the decisions required to hitting these goals. What are the three nigh important KPIs you'd be watching and why? NOTE:Download our gratis Executive Growth Reports nowto come across what a top-rate reporting package looks similar.

4. Delight bring a relevant reporting parcel you've used to our side by side interview (redact sensitive info) and be prepared to walk u.s.a. through what's relevant to our needs and why.

5. What is your current target monthly shut date? How has that date changed over the past two years?

vi. How does your electric current visitor measure confronting the most critical competitive benchmarks?

7. Tell me the sales pipeline math you use to back up your firm's revenue projections.

viii. What are the key attributes of a successful budgeting process?

STRATEGY

ix. What are the key customer segments your electric current company sells to? How do margins and growth vary by segment? How have those evolved and what are the key drivers

ten. Walk me through how you would perform a gap analysis of our accounting process and controls and what you lot'd expect to run into.

xi. Explain the evolution of the product and pricing strategy of your electric current/previous company. Give me an case of a landmark decision that was fabricated in the product strategy, what data informed that determination and your stance of that decision.

12. What is the most challenging function of budgeting for y'all?

xiii. Practise you consider yourself a "strategic CFO" and what examples in your career lead yous to that definition?

14. Who owns and drives the business model in your visitor? What'south your role in evolving it? How has your finance role influenced it?

Feel

15. What are three ways in which your current CEO would say you've been indispensable? How about your lath?

sixteen. Provide me with two examples of how yous've filled the role of controller and fifty-fifty bookkeeper in the by vi to 12 months.

17. Requite me examples of successful and unsuccessful equity and debt fundraising efforts y'all've experienced.

eighteen. Tell me a story about how you've successfully managed through a cash crunch? What levers did yous pull to navigate the shortfall? What reporting immune you to select those levers?

19. Provide me with an example of an acquisition you lot've been an integral role of? A auction or divestment? If you had an opportunity for a do-over, what would you lot alter in each?

xx. Tell me about your experience overseeing legal? 60 minutes? Information technology?

21. What is the toughest finance initiative you have worked on such as cash direction, fundraising, cost containment, budgeting, cost resource allotment, or bankruptcy?

22. In your experience, what was the primal to ensuring your company was compliant with all laws, regulations, and standards that applied to your area of responsibleness?

23. How would yous draw your strengths in the following areas: accounting, FP&A, stakeholder management, Thousand&A and international? Tell me about your weaknesses in each.

24. How have yous improved the accounts receivable wheel at your company? What are DSO - days sales outstanding? How exercise yous handle collections? Have they always been an result? Why?

25. How have you influenced the purchasing process? What was the quantifiable impact of your influence?

26. What accounting software, business organization intelligence, or reporting systems packages do you have offset-hand experience with? What is your preferred package? What exercise yous retrieve of ours? Volition it back up our growth plans?

27. Accept you simplified a financial process inside an arrangement? If so, explain.

Wondering how to navigate the procedure of finding the right CFO service for your business organization? If so, read the comprehensiveOutsourced CFO Heir-apparent's Guide.

Download Our Complimentary Growth Report

As we mentioned in Question iii, ane bang-up style to evaluate the competence of a CFO prospect is to inquire what a superb reporting packet looks similar.Download our free Executive Growth Reports nowto see what winning CEOs and CFOs utilize to track the metrics which matter nearly. New call-to-action