Corporate Counsel Weekly™ helps corporate lawyers get the big picture on the legal challenges facing corporations today. Practitioners can discover trends on the horizon and stay alert to the full...
Sept. 16 — Chief financial officers of large U.S. employers saw their compensation increase by 7 percent in 2013, to a median of $3.1 million, according to a study by the consulting firm Mercer LLC.
Analysis of CFO pay at 491 companies in the Standard & Poor's 500 index from 2011 to 2013 found the results reflect strong corporate profitability in 2012 and 2013, Mercer said in the study, “S&P 500 2013 CFO Compensation,” released Sept. 16.
The components of total direct compensation—base salary and short- and long-term incentives—have remained stable for CFOs, the study said. That could change over time, if CFO pay begins to receive the scrutiny now given to chief executive officer pay, Stephen Mork, a partner with Mercer's executive rewards practice, said in a news release.
“As a consequence, the pay structures for the two executives will become more closely aligned,” he said. “Specifically, the portion of CFO pay allocated for base salary will shrink and the portion allocated for long-term incentives will grow,” he said.
CFOs' annual cash compensation increased 6 percent, base salaries rose 3 percent and short-term incentive payouts were up 6 percent in 2013, the study said. In terms of dollars, the cash component at the median was $600,000 and the short-term incentives paid out at $651,000 at the median, the study said. Because of the strong market, the short-term payouts represented a 13 percent premium over target incentive levels, Mercer said. Median target levels for short-term incentives were $530,000 in 2013, the study said.
The study said the grant date present value of long-term incentives for CFOs grew to a median of $1.8 million in 2013, with performance shares or performance cash awards offered to 45 percent of all CFOs in the survey.
The S&P 500 2013 CFO Compensation study is at http://www.mercer.com/content/dam/mercer/attachments/global/Talent/2013_USA_CFO_Compensation.pdf. The news release is at http://www.mercer.com/newsroom/cfo-pay-rises-7-in-2013-new-mercer-study-finds.html.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)