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 Chicago-based accounting and consulting firm BDO USA.
Banking CFOs had the highest percentage compensation increase among CFOs and CEOs among seven different industries analyzed by BDO. 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 firms saw a modest pay increase of 3%, BDO said in the report released Sept. 26. CEO pay in banking and financial services was sluggish and remained solidly at the bottom of 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,” 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 last year averaged $659,862.
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, senior director in the Global Employer Services Practice.