X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Handkerchiefs, please. Last year may have been a winner for the stock market, Arnold Schwarzenegger and the Florida Marlins, but for CFOs and other top finance executives, it was a year of diminishing returns. Total compensation for CFOs–including salary, bonus, stock and options–fell 4.2% in 2003 from the prior year, according to the annual pay survey by Pearl Meyer & Partners, the New York-based compensation consulting firm. That came on top of the 1% fall recorded for 2002, which was the first decrease for finance executives in a decade. And there was plenty of pain to go around: Total payouts to treasurers in 2003 were down more than 6%, and controllers lost a bit as well.

The biggest drag on compensation payouts for the year is an easy guess: Stock options, thanks to the decision by U.S. and European regulators to require expensing, will no longer be a cheap technique to exponentially enhance executive take-home. For the 41 CFOs sampled by Pearl Meyer, the annual contribution from stock options tumbled a steep 26%, as many companies apparently decided to get a jump on the widely expected ruling on expensing by the Financial Accounting Standards Board (FASB), which was finally issued on March 31.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.