Pay Increases for Retail CFOs Outpace CEOs’

We recently published our third annual BDO 600 CEO and CFO Pay Study, and the findings were rather notable. In four of the eight industries we analyzed, the percentage change for middle market CFO compensation exceeded that of CEO pay change. Retail was one of those industries, with CFO pay increasing six percent in FY 2012, while CEO pay declined one percent. Retail and manufacturing were the only industries to see a decline in CEO pay, despite continued scrutiny of executive compensation in the financial services sector. Despite the pay increase, retail CFOs made 34 percent of what retail CEOs did—the lowest percentage of the industries analyzed.

Looking across industries, technology CEOs saw the highest pay increase (16 percent), while among CFOs, financial services-banking (18 percent) and the energy sector (14 percent) saw the largest increases.

According to our own Randy Ramirez, a senior director in the Global Employer Services Practice, “the CFO role is undergoing a period of notable change, as even more is expected of today’s CFOs. They 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.” As a result, Randy adds, we are seeing pay rates evolve in retail and other industries to meet those new demands.

The BDO 600 CEO and CFO Pay Study examines the CEO and CFO compensation trends in publicly traded companies with annual revenues of $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. For more findings, click here.

Blog-subscribe-ad_CB.JPG