2007 a Good Year for Finance Professionals

Treasury managers’ and finance managers’ average pay was up 6.6 percent in 2007, while other mid-career professionals, including treasury directors, saw pay increases of 5.4 percent on average, according to the Association for Financial Professionals’ (AFP) 2008 Compensation Report.

AFP’s survey of 5,000 members at 2,000 companies found slightly more modest increases for chief financial officers (4.6 percent), vice presidents of finance (5.6 percent), assistant treasurers (5.1 percent) and cash managers (5.0 percent).

Bonuses were healthy last year, too. On average, those surveyed got bonuses equivalent to 16 percent of their base compensation, with executive-level financial professionals reporting the largest average bonuses both in total dollars received and as a percentage of their base salary.

The average base 2007 salaries reported by the survey include:

CFO: $185,700
VP of Finance: $171,500
Treasurer: $161,500
Treasury/Finance Director: $123,300
Manager Treasury/Finance: $97,300
Assistant Treasurer: $124,800
Cash Manager: $73,200

The survey also found that AFP members who have earned an MBA make 19 percent more than their counterparts with a bachelor’s degree.

Other factors that contributed to higher salaries included certifications such as the CTP, CPA, CIA or CFA, the respondent's contribution to profitability, job location and industry type.

Given the current tough economic conditions, what’s likely to happen to salaries this year? While AFP doesn’t have compensation data for 2008, its researchers sense is that the critical role played by finance professionals in this year’s market means those in this niche will remain in great demand, so compensation will keep pace with or exceed the pay raises given to those in other departments.

“Obviously, we don’t have any 2008 data,” says AFP spokesperson Allan Jordan, “but what we’re seeing is that the treasury role inside the company is critical in a bad economy.”

Anecdotally, AFP is hearing that the job market is balanced for finance professionals. No one is talking about cut-backs and positions are being filled, he adds.