Pay boost for finance chiefs as workload ramps up
Chief Financial Officers (CFOs) are seeing their salaries soar as companies look to soften the blow of steadily increasing their workload.
Nearly 80 per cent of finance chiefs received a rise in compensation in 2024, as their responsibilities continue to grow and intensify, according to exclusive research from financial operations platform, BlackLine.
In recent years, expectations of financial officers have gone beyond overseeing accounts and dealing with budgeting and forecasts, to wider company oversight.
According to BlackLine, CFOs now work on strategic planning, technology implementation as more businesses look to improve their digital capabilities, and closer collaboration with CEOs.
Over 50 per cent of chief financial officers cinched a pay rise in their base salary over the last 12 months, while 35 per cent received more through bonuses.
Philippe Omer Decugis, senior vice president and general manager for Europe at BlackLine said: “The rising compensation for CFOs reflects the growing expectations and pressure on their role.”
On average, in 2024, UK based CFOs earned an average annual salary of £147,880, up from £146,000 in 2023.
More expectations, more pay
However, 83 per cent of CFOs now expect a pay rise in 2025, a higher proportion than any other c-suite executive, due to predictions that they will have a stronger role in overall company strategies.
Additionally, more anticipate receiving extra pay through bonuses, with 49 per cent preferring this method, while 52 per cent predict it will come through base salary, a slight decrease from 2024.
In addition to the robust list of duties many CFOs report completing, over the next five years, 28 per cent believe they will be tasked with operational management and talent planning.
Meanwhile, a quarter believe they will soon be dealing with external communications.
Decugis said, “CFOs are now expected to be a master of all trades.”
CFO departures also reached their highest rate in six years in the UK, with the average tenure reducing from 6.2 to 5.8 years in 2024, due to increasing pressure.