By Thomas (Tom) Thompson, Research Manager, Financial Executives Research Foundation Inc., and Ken Cameron, Compensation and Benefits Consulting Director, Grant Thornton LLP.
The Financial Executive Compensation Survey 2016 of public and private company senior-level financial executives saw an average reported salary increase of 4.0% for all respondents. The following are a few highlights from the survey report.
"The demand for experienced financial and accounting executives is at its strongest in recent years," says Ken Troy, director of Grant Thornton LLP's Compensation and Benefits Consulting practice in Los Angeles. "Companies need to pay attention to changes in the competitive market for talent. They also should have a clear strategy that defines how they will best attract and retain the executives in these key roles."
Financial executives' salary increases taper off
The average salary increase for financial executives at both public and private companies dipped slightly compared to last year. Public companies reported an increase of 3.7%, a decrease from 3.9% a year ago, while private companies saw a 4.1% increase in 2016, from 4.4% in 2015. These numbers are consistent with broader market data.
Slight changes in finance/accounting staffing levels
The relative size of the financial organization's staff reported in 2016 saw slight deceases at smaller companies, while larger organizations, public companies in particular, saw increases compared with data reported last year.
Benefits
Nearly all (95%) public and private company respondents have a defined contribution plan. Additionally, less than one quarter (23%) of respondents' companies have a defined benefit plan. For companies that do still offer a defined benefit plan, nearly half (47%) restrict new entrants or have frozen benefit accruals.
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