Earlier this week, the Association for Financial Professionals released its “2013 AFP Compensation Report,” which tabulates the results of a survey of more than 2,700 finance professionals throughout the United States. Respondents across the board reported increases in their base salaries from January 1, 2012, to January 1, 2013. Those at the executive level earned the largest increase—3.8 percent, on average, vs. 3.5 percent for managers and 3.1 percent for finance staff. CFOs and treasurers each saw an average increase of 4.3 percent in their base salary.
The AFP survey revealed that a wide range of factors impact the type and size of performance bonuses in the finance function. Fifty-nine percent of companies base finance professionals’ bonuses on achievement of operating income or EBITDA goals. Other key financial metrics that affect bonuses include hitting profit targets (50 percent), sales or revenue targets (32 percent), cost control or cost reduction targets (32 percent), and cash flow targets (26 percent). Fewer organizations hang bonuses for the finance team on softer performance measures, such as completion of specific projects (52 percent) or customer satisfaction (18 percent).