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Ariel Kouvaras
Bliss Integrated Communication
646-386-2926
Ariel@Blissintegrated.com

Tuesday, September 24, 2013
CFO PAY CHANGE OUTPACES CEOS’ ACROSS FOUR INDUSTRIES, BDO ANALYSIS FINDS
REAL ESTATE TRENDS ABOVE ALL OTHER INDUSTRIES IN COMPENSATION

Chicago, IL – The percentage change for CFO compensation across four of the eight featured industries exceeds that of CEO pay change. Middle-market banking CFOs show the highest percentage increase (18 percent) in compensation, according to an analysis of 600 mid-market public companies conducted by BDO USA, LLP, a leading accounting and consulting organization. Energy CFOs saw a 14 percent increase from FY 2011 to FY 2012, followed by real estate (9 percent) and retail (6 percent).The study also reveals that some CFOs and CEOs experienced a decrease in compensation, including manufacturing CFOs and CEOs, healthcare CFOs, and CEOs in retail.

“The CFO role is undergoing a period of notable change, as even more is expected of today's CFOs. CFOs are no longer just the keeper of the numbers, but instrumental to executing the broad business strategy, from growth through acquisitions and maximizing existing assets, to navigating an increased financial and industry-specific regulatory environment,” said Randy Ramirez, a senior director in the Global Employer Services Practice at BDO. “As the position evolves, pay rates across some industries are starting to meet those new demands.”

 

CEO % Change

CFO % Change

Real Estate

8%

9%

Technology

16%

5%

Energy

11%

14%

Retail

-1%

6%

Healthcare

8%

-1%

Manufacturing

-6%

-12%

Financial Services-Nonbanking

3%

1%

Financial Services-Banking

10%

18%

Average Change

6%

5%

Compensation changes differ by industry. Similarly to the past two years, real estate CEOs continue to receive the highest compensation out of all surveyed industries at $3,967,335. For CFOs, the highest earners this year are also in the real estate industry ($1,488,971), while last year technology CFOs outpaced all others. The overall turnaround in the real estate sector this past year may be contributing to this positive increase in both CEO and CFO pay. Following real estate and technology, energy executives are also among the most highly compensated CEOs and CFOs, with overall compensation at $3,546,243 and $1,479,097, respectively.

CEO pay in banking and financial services, on the other hand, continues to be sluggish and remains solidly at the bottom of all surveyed industries across both categories. This remains consistent with last year's study findings, indicating that there has been little bounce back from the increased regulatory environment, perceived personal risk, and continued reputational damage that the industry overall still endures.

These findings are from the third edition of The BDO 600 CEO and CFO Pay Study, which examines the CEO and CFO compensation trends in publicly traded companies with annual revenues from $25 million to $1 billion in the energy, health care, manufacturing, real estate, retail and technology industries; and publicly traded companies with assets between $50 million to $2 billion in the banking and financial services industries. The study included proxy statements that were filed between May 15, 2012 and May 15, 2013.

CEO and CFO Average Compensation by Industry:

 

2012 CEO Pay

2012 CFO Pay

CFO as % of CEO Pay

Real Estate

$3,967,335

$1,488,971

38%

Technology

$3,702,976

$1,462,872

40%

Energy

$3,546,243

$1,479,097

42%

Retail

$2,675,939

$899,194

34%

Healthcare

$2,582,796

$975,739

38%

Manufacturing

$2,193,985

$890,356

41%

Financial Services-Nonbanking

$2,170,870

$860,073

40%

Financial Services-Banking

$1,465,354

$659,862

45%

AVERAGE

$2,788,187

$1,089,520

40%

*Material discussed is meant to provide general information and should not be acted on without professional advice tailored to your firm's individual needs.

About BDO USA

BDO is the brand name for BDO USA, LLP, a U.S. professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. For more than 100 years, BDO has provided quality service through the active involvement of experienced and committed professionals. The firm serves clients through 49 offices and more than 400 independent alliance firm locations nationwide. As an independent Member Firm of BDO International Limited, BDO serves multi-national clients through a global network of 1,204 offices in 138 countries.

BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. For more information please visit: www.bdo.com.