CFOs, treasurers and their staff continued to earn larger raises than other white-collar workers during 2008. However, the people who manage finance at major organizations in North America were not exempt from the effects of the current recession as their salary increases were smaller than they had received in recent years. These are the key findings of the Association for Financial Professionals' (AFP's) 2009 Compensation Report.

Average annual salaries for financial professionals increased by 3.4 percent in 2008, more than 13 percent higher than the national average but less than the 4.5 percent increase reported for 2007. Bonuses averaged 15 percent of financial professionals' base salaries, matching the prior year.

The report, which is published annually, asked senior level financial professionals to provide compensation information for their entire treasury/finance staff and asked core level financial professionals to provide compensation information for themselves for the period Jan. 1, 2008 to Jan. 1, 2009.

Whereas the executive level of the profession had earned the highest percentage increases in base salary in the prior year, middle management outpaced them for the 2009 survey period. The executive level (CFO, Vice President of Finance, Treasurer, Controller/Comptroller, and Director of Treasury/Finance) earned 3.5% salary increases compared to 3.7% for middle management (Assistant Treasurer through Assistant Cash Manager). Within the executive tier, treasurers reported slightly larger increases than CFOs, 3.9 percent compared to 3.2 percent.

Of all job titles across the board, the highest percentage increase was 5.7% for Managers of Treasury/Finance, down from 6.6% for the same title in the prior year.



*% Base salary calculated only for records with both 2008 and 2009 base salary

In addition to salaries and bonuses, survey respondents noted other benefits such as health and life insurance, vacation and retirement contributions in their overall compensation packages. Despite rising health insurance premiums, every organization surveyed provided health insurance to employees and 96 percent provided dental coverage; however, cost sharing did increase.

Upward Mobility

A full 85 percent of organizations reported increased job responsibility as the number one factor influencing an employee's job advancement, up from 83 percent in the prior year. As in prior years, advanced degrees and professional certifications correlated to increased salaries. MBA holders, for example, earned 23% more than those with only a bachelor's degree did. The survey also found that professional certifications such as the Certified Treasury Professional (CTP) or Certified Public Accountant (CPA) designation tended to bolster a professional's salary potential at all levels, regardless of advanced degree or job title. Support-level positions benefited the most from certification, averaging a 30 percent increase in salary over those uncertified.

Factors that contributed to upward mobility included:

- Increased job responsibility
- Contribution to profitability
- Professional designations and certifications
- Earning an MBA