Finance salaries can be hard to find and are not talked about often, due to cultural norms and a relatively opaque industry. If you’re looking to benchmark or gain insight into compensation trends, you’ve come to the right place – This article sheds light on the salaries for financial teams in the UK, EU and US.
This article is the summary of a report, in which 937 finance professionals were surveyed in 2023, predominantly in the SaaS industry and members of the CFO Connect Community. The key findings are below:
Geography impacts both current salary and salary growth
Firstly, we see a continued significance geography plays in determining the salary of finance professionals.
Notably, the gap between French and German salaries has narrowed from 30% in 2022 to 21% in 2023, indicating a convergence in compensation levels. While German salaries still surpass the EU + Swiss average, the difference has diminished from 19% to 12.8%.
EU salaries grow, UK stagnates
In contrast, UK finance salaries have experienced stagnation, with only a marginal 0.3% increase observed in 2023 compared to the previous year. This follows a 2% decline in 2022 relative to 2021. Meanwhile, the average EU salary has seen a robust 7.6% increase, with France leading the region with a rise of over 9%.
US continues to soar
The US continues to demonstrate substantial salary growth in the finance sector, outpacing its EU and UK counterparts with an impressive 11.1% increase from 2022 to 2023. Notably, six out of the ten highest reported salaries originate from the United States, including the highest reported salary of €1,023,000.
The gender pay gap persists
Another interesting aspect to consider is the gender pay gap. While there has been a marginal decrease in the overall gender pay gap from 13% in 2022 to 12% in 2023, it remains persistent. This highlights the ongoing need to strive for an equitable distribution in compensation within the finance industry.
Curiously, when specifically looking at CFO salaries, the difference between men and women drop to just €2,000 more for men. With increased awareness and efforts towards achieving gender equality in the workplace, we can hope that these disparities are trending in the right direction.
More experience? Higher earnings
Unsurprisingly, CFOs with extensive experience command higher salaries. Average annual finance salary clearly increases with age.
However, exceptions exist: some professionals aged 40-50 had lower salaries, while those aged 25-40 secured more of the highest salaries. This suggests age isn't the sole factor determining salary; other variables like experience and performance also play crucial roles.
Company stage makes a large difference
Startup employees generally earn the least within each age bracket, likely compensated by potential stock options or equity instead. The exception is for those aged 51 and above, who can earn more than their counterparts in scaleups and private enterprises.
However, the most striking observation is the substantial salaries of senior professionals in publicly listed companies, particularly those aged 40 or older, who earn upwards of €200,000. There were no finance professionals aged 18-30 in publicly listed companies.
The highest reported salary was USD $1,100,000 for the CFO of a publicly listed construction company in the US with over 5,000 employees. The second-highest salary, €810,000, was earned by the Head of Finance of a private French software company, underscoring the significant salary differentials across different company stages and industries.
Salaries increase with seniority
The trend of rising salaries as professionals progress up the corporate ladder is expected.
However, the notable aspect lies in the year-over-year rate of change, which varies across different roles.
For instance, while CFO salaries increased by 5.6% from 2022 to 2023, and Finance Director salaries saw an 8% increase.
The most significant increases were observed in Manager-level roles, with both Finance and FP&A Managers experiencing salary hikes of over 20%. However, Financial Controllers and Accountants witnessed salary decreases, alongside Heads of Accounting/Controlling and VPs.
Geographical differences more pronounced for CFOs
The impact of the country of employment on earnings is emphasised when considering CFO positions only, with significant disparities between markets.
For CFOs, the gap in salary between different countries is notably larger compared to the average for all roles. For instance, the difference between the average French CFO's salary and that of an American CFO is a staggering 109%, surpassing the average difference of 104% across all roles between these two countries. Similarly, the 41% difference between French and German CFO salaries contrasts with the overall average difference of 21%.
CFOs earn much more in larger companies
Just as we saw with age, the size of the company - and likely the size of the finance team they lead - directly correlates their compensation.
Notably, there is a connection between company size and the age of the CFO. Only 4.5% of respondent CFOs were aged 18-30, with none of them in companies with more than 250 employees. The largest group of young CFOs, comprising 8.5%, were overseeing the smallest companies with 1-50 Full-Time Equivalents (FTEs).
These observations underline the interplay between company size, the age distribution of CFOs, and their corresponding compensation levels, suggesting that larger companies may offer higher compensation packages and typically employ more seasoned finance professionals in leadership roles.
In conclusion
CFO salaries in 2023 were impacted by various factors, ranging from geography and company stage to experience and gender. Seasoned CFOs with extensive experience tend to earn higher salaries and experience more significant salary growth. The location of the job also plays a crucial role, with financial hubs offering higher pay and greater potential for career advancement.
CFOs and finance professionals should carefully consider these factors and chart their courses accordingly to secure a successful and rewarding financial career.
Data info
Job Titles:
141% are CFOs.
13% are Finance Directors.
16% are Heads of Finance.
7% are VPs Finance.
Geographical Distribution:
Majority work in Europe, particularly in France, Germany, and the United Kingdom.
13% are from the United States.
A total of 41 countries are represented.
Gender Distribution:
68% identify as male.
31.5% identify as female.
0.5% identify as either non-binary or prefer not to answer.
Industry Representation:
SaaS/software is the most represented industry, with 32% of respondents.
18% work in IT.
Business Type:
43% identify their businesses as Scaleups.
27% are Startups.
26% are in Private Enterprise.
4% are in Public Enterprise.
Company Size:
Approximately one-third work in companies with fewer than 50 employees.
45% work in companies with 51-250 employees.
17% work in companies with 251-1000 Full-Time Equivalents (FTEs).
Survey Timing:
Data was collected during April and May 2023.
Read original report here by Spendesk
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