Support through your toughest HR challenges: A network of 285,000 HR professionals.
Shawn Premer shows how doing the right thing for employees leads to positive business results.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
CEO and CFO compensation reflects a ‘modest but positive year’
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
updated on Dec. 7, 2016
CEO compensation at middle-market U.S. companies rose by 3.2 percent last year to an average of $3.8 million, and CFO compensation rose by 4.1 percent to an average of nearly $1.5 million.
BDO 600: 2016 Survey of CEO and CFO Compensation Practices of Mid-Market Public Companies report, released Nov. 15, examined CEO and CFO compensation at publicly traded companies with annual revenues from $100 million to $3 billion. The study used proxy statements filed between March 2015 and March 2016.
While the increases are moderate, mid-market executives fared better than employees overall, who received an average 2.9 percent salary increase in 2015.
"Executives at middle-market companies are cautiously bullish," said Randy Ramirez, managing director in the global employer services practice at accounting and consulting firm BDO USA, which conducts the annual survey. "Compensation increases reflect a modest but positive year, and despite a few economic challenges and uncertainty around election outcomes, 2016 growth may even be better."
Among the findings for 2015 total compensation:
Mid-Market CEO and CFO Pay
2015 total compensation and percentage change from 2014
"Executive compensation plans continue to be hotly debated as industries like financial services and health care grapple with increased scrutiny from stakeholders, lawmakers and consumers, with continued calls for even more transparency," said Ramirez. "We expect performance metrics will continue to grow in importance, as will communication plans to help earn shareholder approval."
[SHRM members-only toolkit:
Designing Executive Compensation Plans]
Higher Pay and Higher Risk in Larger Companies
While total compensation is highest at larger companies in the middle-market space, so too is the proportion of variable compensation in the form of bonuses, stock and long-term incentives:
*Among larger companies in this space, just 15 percent of CEO pay is salary versus 24 percent at smaller mid-market companies.
*For larger mid-market CFOs, 22 percent of pay is salary versus 34 percent at smaller companies.
CEO and CFO Pay in 2015 by Company Revenues
C-Suite Pay at Mid-Market Private Firms
Also released in November was The CFO Alliance's
2016/2017 Mid-Market Executive Compensation Survey. Earlier this year the alliance polled a sample of its members—CFOs and other executives in middle-market organizations (75 percent private, 13 percent public and 12 percent nonprofit); 188 organizations participated and provided detailed information on their compensation programs.
The table below provides aggregated values for base salaries by position. The 2015 column reflects the average values from the previous year's report for each position.
Source: The CFO Alliance.
Key observations from the report:
The table below provides aggregated values for short-term incentives (STI) by position. The 2015 column reflects the average values from the previous year's report for each position.
STI plan types, in descending order of frequency, included:
STI performance metrics, in descending order of frequency, included:
STI incentive plan performance targets, in descending order of frequency, included:
The table below provides aggregated values for long-term incentives (LTI) by position. The 2015 column reflects the average values from the previous year’s report for each position.
Source: The CFO Alliance.
Key observations from the report:
LTI compensation programs offered, in descending order of frequency, included:
LTI performance metrics, in descending order of frequency, included:
An executive summary of The CFO Alliance study results is available for download
here. To request a copy of the full 34-page survey report, contact Greg Wood at Greg.Wood@thecfoalliance.org.
Was this article useful? SHRM offers thousands of tools, templates and other exclusive member benefits, including compliance updates, sample policies, HR expert advice, education discounts, a growing online member community and much more.
Join/Renew Now and let SHRM help you work smarter.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Choose from dozens of free webcasts on the most timely HR topics.
SHRM’s HR Vendor Directory contains over 3,200 companies