PE-backed CFO salaries see 5% annual increase – survey

In addition to the base salary, the average bonus is 29% and the equity stake offered is 1.5%. Salary and bonuses are up on average 5% from last year, while equity remains unchanged. According to the survey, the rise is due to both an increase in demand for CFOs in the mid-market, as well as the ability for CFOs to renegotiate their current packages.

Finatal surveyed 682 CFOs from PE-backed mid-market companies – classed as generating an average EBITDA of £5-50m. 

In terms of sectors, CFOs in financial services businesses have the highest base salary averaging £180,189, while media/marketing and retail are at the lower end, averaging £161,159 and £161,795 respectively.

There is a clear link between a CFO's salary and the enterprise value of the business he or she leads: businesses valued at up to £20m average £139,692 and those over £501m average £211,890.

A total of 64% of survey respondents said that equity incentive was a key driver in accepting their overall compensation package, especially given the fact that most said they could achieve higher salaries in corporate or PLC roles. 

According to Finatal, the discrepancies in bonuses and equity participation are down to the different values of the businesses, as well as sector-specific issues. For example, a 1% equity stake in a tech business can yield a multi-million outcome, while a higher equity incentive may be needed to attract a CFO to a business that has had high-profile issues and sector challenges.

According to a survey by Deloitte this year, which was cited in the Finatal report, many PE backers replace one out of two CFOs within 18 months of investment. However, confidence among the CFOs surveyed by Finatal has improved, with 62% confident that they would remain in their role until exit, compared with 59% in 2018.

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