Average compensation for CFOs jumped 18% from 2011 to 2012 at financial institutions with assets of $25 million to $2 billion, according to an analysis by BDO USA in Chicago.
What’s more, banking CFOs had the highest percentage compensation increase among CFOs and CEOs among seven different industries analyzed by BDO, an accounting and consulting firm.
However, CFOs at non-banking financial services firms – insurance firms, payday lending companies, currency exchanges, microloan organizations – received a comparatively meager 1% compensation increase last year.
Banking CEOs received an average 10% wage increase, while CEOs at non-banking financial services firm saw a modest pay increase of 3%, BDO said in the analysis released last week.
CEO pay in banking and financial services continues to be sluggish and remains solidly at the bottom of all surveyed industries across both categories, according to the BDO study.
“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,” BDO said in a statement.
Nevertheless, the average salary of banking CEOs was $1.4 million, 55% higher than banking CFOs who earned an average wage of $659,861 in 2012. In the non-banking financial services arena, the average CEO pay totaled $2.1 million, while the CFO pay amounted $659,862 last year.
CFO compensation also increased in the industries of real estate (9%), technology (5%), energy (14%) and retail (6%). Wages decreased for CFOs in the manufacturing and healthcare industries by 12% and 1%, respectively.
BDO, which analyzed compensation data from 600 middle market public companies, speculated compensation for CFOs increased in 2012 because they were taking on more responsibilities essential to the success of the business.
“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.”
In other industries, compensation for CEOs increased by 16% in technology from 2011 to 2012, by 11% in energy, 8% in healthcare and real estate and 43% in the non-banking financial services. CEOs in the manufacturing and retail industries saw their compensations drop by 6 % and 1%, respectively, according to the BDO analysis.