CFO Salary

The CFO is responsible for the fiscal management of the company's operation and directly reports to the director or the CEO of the company. Most CFOs have an MBA in finance or an accounting background and they assist in the budgeting, management and acquiring of funds for a company. It is a job which involves great responsibility and the salary reflects that, it is a high paying career. Financial management is the main task of any CFO and they play an important role in helping the company achieve its mission. In view of the recent accounting scandals that hit the US economy, it is preferable that the chief financial officer be a certified public accountant.

Job Description

As the name suggests, the Chief Financial Officer is in charge of the finances of the company, they are in charge of the financial planning, revenue and expenses of the company. They allocate budgets for all the departments within the company and also take care of the salaries of the staff. The CFO also has to implement and develop procedures for correctly reporting the financial transaction of the organization to external auditors. They have to implement policies that help increase the profit margins and the tangible assets of the company.

The CFO has to oversee the payroll and the employee strength and maintain the financial records of income and expenditure. One of the most important duties of a CFO is financial forecasting and consolidating the company's financial performance. Compliance with state and federal procedures is also one thing that comes under the job description. Ensuring all A-133 audit formalities are done, in accordance with the Office of Management and Budget guidelines, and 403 (b) compliance issues are met is the responsibility of CFO's office.

Salary Range

The salary is directly related to the strength and market position of the organization that they work for. These high-ranking executives are in the upper echelons of management and are paid handsome salaries. The average salary of a CFO does not tell the whole story behind how much they earn as they get more in commissions, and a share in the profit on business deals and mergers.

Some industry specific data about the average salary indicates that the Information and Technology sectors are the paymasters. The salary of a CFO in the IT industry can range from USD 92,000 to USD 146,000. Number of years of experience plays the defining factor when it comes to their salaries more than the educational qualification. Construction sector also pays good salaries to their CFOs and the salaries range between USD 86,000 to USD 151,000. A CFO with a construction company also earns a lot of incentives and bonuses on acquisitions and new deals.

Financial services companies also need CFOs who specialize in forecasting, planning, and budgeting of organizations. The salary in a financial services company can range from USD 90,000 to USD 145,000. One of the emerging sectors for competitive salaries is the health care industry, salaries can range from USD 86,000 to USD 139,000. To go with their hefty bonuses CFOs also enjoy a wide range of medical benefits, like dental and eye care.

The salary and bonus structure is enviable, but it's not only about the color green, the job is of great responsibility. Handling and managing a company's financial resources is a vital task, careful planning, and research, along with a watchful eye on the economy is needed to successfully perform the duties of a CFO.