A quick Google search will give you a wide-eyed look at the highest-paid CFOs at publicly traded North American companies. CFO salaries have obviously blossomed, along with the responsibilities of this strategic finance role.
Whether you’re just starting an entry-level accounting job or you’re already working as a financial analyst or controller, you might consider the office of the CFO to be the destination on your career path. If you're looking to hire a CFO, you might be interested in this, too: How much money do Canadian chief financial officers expect to make, what skills and experience do they need, and what do they do in this role?
CFO salaries, like those of other accounting and finance professionals, vary by size of company, province and industry, not to mention the impact of bonuses, stock awards and dividends. The Robert Half Salary Guide for Accounting and Finance can show you pay ranges for more than 175 Canadian finance and accounting positions, including that top job.
Benchmarks for CFO salaries
- At smaller companies, with sales less than $50 million, CFOs can expect to start between $142,750 and $188,000.
- At a midsize company with sales between $100 million and $250 million, a CFO can expect a pay range from $160,000 and $218,000.
- At the high end, a CFO who joins a company with sales in excess of $250 million can expect to start with a salary range between $202,000 and $312,000 in 2017.
Canadian average year-over-year increase in these salaries went from 3.0 per cent in 2016 to 3.1 per cent in 2017, indicating a strong hiring market.
Visit the Salary Centre, where you'll be able to adjust salaries for CFO jobs in your city with the Salary Calculator, and get your own copy of the Salary Guide.
Duties and expectations
The CFO is ultimately responsible for the financials of an organization, of course. But that’s not all.
CFOs can’t just review the numbers; they need to understand all aspects of the business, from sales and marketing goals to the overall strategic plan. From financial results and planning to operations, to risk management and funding, this demanding position encompasses an increasing range of responsibilities, expanding the influence of this role within a company.
The job description for CFOs varies by industry and company size, but here are some examples of duties at this rung on the career ladder:
- Providing strategic management of the accounting and finance functions
- Directing accounting policies, procedures and internal controls
- Recommending improvements to ensure the integrity of a company’s financial information
- Managing or overseeing the relationship with independent auditors
- Collaborating with chief information officers on technology decisions
- Overseeing financial systems implementations and upgrades
- Managing relationships with investors and investment institutions
- Identifying and managing business risks and insurance requirements
- Hiring, training and retaining competent accounting and finance staff
Professional experience and skills
CFOs must have a broad range of skills beyond the ABCs of accounting, including analytical, strategic planning, management and communication skills. They also need to be able to work well with the CEO, board of directors and senior managers.
They typically have at least 10 years of experience in accounting or finance, including a minimum of five years in a management job. Larger firms require more experience than smaller ones. Many companies prefer candidates who possess a master’s degree in business administration (MBA) and/or a Canadian CPA designation.
CFOs should possess knowledge of all aspects of International Financial Reporting Standards (IFRS) and/or Accounting Standards for Private Enterprises (ASPE). Public companies also need CFOs who have experience with securities reporting. Many employers also value public accounting experience for CFO roles.
Candidates should have held positions of increasing responsibility within an accounting department, such as director of finance, director of accounting or controller.
Finally, it’s critical for CFOs to keep up with their professional development so they can manage fast-coming changes in the industry. Whether it’s regulations, analytics, business strategy, risk management, talent acquisition and retention, consensus-building, leadership, value creation or technology (and that’s just a partial list), CFOs need to have the vision to position themselves at the top, where they’re ready for anything.
Considering all the elements of the CFO job, from pay to skills to responsibilities, are you ready to take the next step?