Corporate treasurers received higher pay raises than chief financial officers (CFOs) in 2010, according to a survey by the Association for Financial Professionals (AFP). As a group, financial professionals received higher pay raises than their white collar counterparts in other industries, with executive level increases rebounding to pre-recession levels.
“The treasurer’s ability to effectively manage liquidity was severely tested throughout the recession,” said Jim Kaitz, AFP’s president and chief executive officer (CEO). “Companies are rewarding this important role with a healthy combination of base pay, incentives and benefits.”
The 2011 AFP Compensation Survey asked senior level financial professionals to provide compensation information for their entire staff and asked core level financial professionals to provide their own compensation information for calendar year 2010 as well as data on base salaries effective on 1 January 2011. AFP has published its compensation report annually for 23 years.
Average annual salaries for financial professionals increased by 2.8% in 2010, bringing them nearly 1% point above the national average. Bonuses averaged 16% of financial professionals’ base salaries, compared to 14% in the previous year, but the number of companies awarding bonuses has been declining. Of those surveyed, 65% of organisations awarded bonuses in 2010, down from 71% in 2009 and 75% in 2008.
Executive level finance professionals experienced the highest salary growth – an increase of 3.2%, on average. Treasurers earned the highest average increase within the executive tier, 3.7%, compared to 2.8% for CFOs. This was the second year that treasurers received bigger raises than CFOs.
Staff level salaries increased by an average of 2.9%. Financial analysts received the highest raises within that category (4.3%), the largest increase that AFP recorded.
Support-level financial professionals earned the smallest raises (2.5%), reflecting new technologies and increased automation of clerical roles in finance. The clerk title received less than a one percent raise, for example.
When reviewing candidates for promotions, increased job responsibility is the number one factor employers consider, cited by 62% of survey respondents. Other factors include an employee’s contribution to profitability (52%), holding a professional designation such as AFP’s certified treasury professional (CTP) designation (50%) and earning an MBA (28%).
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