CFO pay surged 8% last year—and long-term incentives now account for 63% of the average package
Chief Financial Officer (CFO) compensation saw an 8% increase last year, closely mirroring CEO pay growth for the first time in several years. This rise is attributed to strong corporate performance and a focus on executive retention, with long-term incentives now constituting 63% of a CFO's average package. While base salaries saw modest increases, the bulk of compensation is now tied to future performance and vesting schedules, serving as a key retention tool. Despite the expanding responsibilities of CFOs, including involvement in AI strategy, their compensation frameworks have not yet significantly reflected these new duties, with AI integration into incentive plans still in its early stages. AI
IMPACT Executive compensation structures are beginning to slowly incorporate AI strategy, but remain largely tied to traditional performance metrics.