CFO.com has posted the results of its CFO Compensation Survey, and the results show that CFO compensation seems to be stagnating, but you probably wouldn't guess that based on the compensation amounts shown below. The survey considers the salary, bonuses, and long-term incentives of 234 finance executives employed at 350 companies with earnings of $1 billion or more.
The top 10 earners and their total compensation package are:
- Michael E. Lehman, Sun Microsystems, $37,201,000
- Mark H. Swartz, Tyco International, $32,368,000
- Larry R. Carter, Cisco Systems, $29,433,000
- Anthony S. Thornley, Qualcomm, $20,287,000
- James G. Stewart, Cigna, $15,434,000
- Dennis L. Winger, Applera, $12,614,000
- M. Scot Kaufman, MBNA, $10,782,000
- David L. Shedlarz, Pfizer, $9,417,000
- David A. Viniar, Goldman Sachs, $8,981,000
- John R. Joyce, IBM, $6,065,000
According to survey results, compensation growth for upper level financial executives leveled off in the past year and total median compensation for CFOs dropped 1% from the previous year.
The survey results indicate a direct result between company performance and CFO compensation. CFOs at companies that saw a drop in net income experienced a drop in compensation. Companies experiencing an increase in net income gave similar increases to their top financial officers.
Many of the companies included in the survey are embracing the concept of compensation awards that are directly tied to company performance and performance goals.
The survey was co-sponsored by CFO.com and Mercer Human Resources Consulting. A similar study of CEO compensation packages shows that CFOs earn approximately 40% of the CEO compensation.