CFO Compensation
What does a fulltime CFO cost? The answer to this question is dependent upon company size and location. The Robert Half 2013 Salary Guide stratifies companies by sales revenue as follows:
- To $50 million
- $50 million to $100 million
- $100 million to $250 million
- $250 million to $500 million
- $500 million +
The guide provides a national average range that must be customized for local markets. The amount the guide provides is for the base salary and does not include benefits or bonus.
See Employment Cost Trends for U.S. Bureau of Labor Statistics for employer costs for employee compensation. A review of the data indicates that employee benefits will cost the employer an additional 60% of the employees base salary.
I will only focus on compensation for CFO's in companies of $50 million or less in sales.
The national average for CFO base compensation for companies of $50 million and less was as follows (2013):
Big City (Chicago)
Suburbs (Chicago Area — Naperville)
It is reasonable to assume that companies below $25 million in revenue would generally pay less for a fulltime CFO compared to companies in the $25 to $50 million range. Since the Robert Half salary guide does not provide data for companies under $25 million, I will use the national average with no adjustment. Thus I am reducing the base salary amount by 12% to 23% depending upon location.
I believe that it is safe to assume that a CFO for a company under $25 million will cost between $130,000 and $185,000 per year including benefits depending upon location. A fulltime CFO is a significant position and commands a corresponding significant salary cost.
Many companies under $25 million don't need a fulltime CFO nor could afford a fulltime CFO. However, Every Company Needs Financial Guidance®. A solution to this situation is to engage CFO 4 Small Biz™.
A CFO 4 Small Biz™ Partner, on a part-time basis, can provide high level financial guidance at an affordable cost. A full service (part-time) CFO can be engaged for less than one tenth to one quarter of the cost of a full-time CFO depending upon the services needed.
CFO 4 Small Biz™ offers monthly financial management service at three different levels on a fixed fee basis. Project work is also offered. My job is to help businesses maximize its profits.
Every Company Needs Financial Guidance®.
Is yours exceptional?
If not please contact me.
