Financial officers rake it in.
However, the fixed portion of pay declined. Thirty years ago, salary constituted nearly all the compensation for these executives. It now accounts for less than half. The compensation package's non-salary components increased very quickly while salary raises were modest. For example, controllers actually saw a small decrease in their salaries on average, even though they got large increases in the amount of stock options.
CFOs especially are seeing their fortunes rise and fall with those of their companies. Their salaries have become comparatively insignificant pieces of their compensation pie, as flexible rewards have risen:
Salary: 22% Nonfixed components: 78%
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|Title Annotation:||1997 compensation|
|Publication:||Journal of Accountancy|
|Date:||May 1, 1998|
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