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2007 Financial Executives Compensation Survey

2007 Financial Executives Compensation Survey. Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation. Financial Executives Research Foundation (FERF). Who we are: The independent research affiliate of FEI. What we do:

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2007 Financial Executives Compensation Survey

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  1. 2007 Financial Executives Compensation Survey Cheryl Graziano Vice President of Research and Operations Financial Executives Research Foundation

  2. Financial Executives Research Foundation (FERF) • Who we are: • The independent research affiliate of FEI. • What we do: • Help members learn from other members. • How we do it: • Tax-deductible contributions from corporations, FEI chapters and individuals. • Research publication sales/subscriptions

  3. Financial Executives Research Foundation (FERF) What we offer: • We help FEI members learn from other members • Financial Executives List Exchange (FELIX) – ask your peers about topics such as Internal Control Procedures, Tax Preparation and Audit Fees for Private Companies, FAS 123R, Asia and China Telecom Challenges, and more • Research Forum Newsletter • Financial Executive magazine articles • Research reports, alerts, surveys • Continuing professional education credits • All accessible from the FEI website as part of FEI membership

  4. The Survey • Electronic survey e-mailed to 9,062 active FEI members • Members were asked 27 questions in five key areas: • Demographics, • Compensation, • Long-Term Incentives, • Retirement Benefits, and • Other Compensation Benefits. • 1,844 members responded (20% response rate

  5. Respondent Profile

  6. Industry andLocation of Company Headquarters • Almost one third (32% or 598) of the responses came from members from three industries: Banking/Financial Services, Manufacturing and Technology. • Many responses (42% or 771) came from members who worked for companies headquartered in: • California (15% or 275), • Illinois (6% or 110), • Massachusetts (7% or 121), • New York (6% or 110), and • Texas (8% or 155).

  7. Private Company Titles VP Finance 907 responses = 49% total Treasurer Other Corporate CFO Divisional Controller Divisional CFO Corporate Controller

  8. Private Company Job Responsibilities

  9. Private Company CFO • Compensation proportionate to the annual revenues of their employers • Median annual base salary is in the $176,000 to $200,000 range • Median annual bonus target is between 31 and 40% of base salary • CFO oversees a median of 10-50 finance/accounting employees or FTEs • 554 responses

  10. Private Company – CFO “Direct Reports”Median Compensation • Corporate and Divisional Controllers $100,000 – 125,000 • VP Finance and Divisional CFO $126,000 to $150,000 • Treasurer $151,000 – 175,000 • PLUS ++ Annual Bonus Target of 21-30%

  11. Private Company Financial Executives California • CFO state median = national median • Annual base salary range $176,000 to $200,000 plus 31 and 40% bonus (78 CFOs) • Other titles state medians > national medians • Corporate Controllers at $126 to 150K salary • VP Finance at $151 to 175K salary

  12. Public Company Titles VP Finance 842 responses = 46% total Divisional Controller Corporate CFO Other Treasurer Corporate Controller Divisional CFO

  13. Public Company Job Responsibilities

  14. Public Company CFO • Compensation proportionate to the annual revenues of their employers • Median annual base salary is in the $251,000 to $275,000 range • Median annual bonus target is between 41 and 50% of base salary • CFO oversees median of 10-50 finance/accounting employees or FTEs

  15. Public Company – CFO “Direct Reports”Median Compensation • VP Finance, Corporate Controller, Divisional CFO all earn $176,000 to $200,000 PLUS ++ Annual Bonus Target of 31-40% • Treasurer $176,000 to $200,000 PLUS Bonus of 41-50% • Divisional Controller $126,000 to $150,000 PLUS Bonus of 21-30%

  16. Public Company Financial Executives California • CFO state median = national median • Annual base salary range $251,000 to $275,000 plus bonus between 41 and 50% (56 CFOs) • Other titles state medians > national medians • Corporate Controllers at $176 to 200K salary • VP Finance at $226 to 250K salary

  17. Long Term Incentives • 409 members (split between public and private companies) receive cash-based awards • 1,096 received stock-based awards • 665 based on fixed number of shares in options or restricted units • 309 also get dividends

  18. Retirement and Other Perks • 384 are eligible for defined benefit plan (60% from public cos.) • 148 have supplemental db plan • 171 have supplemental defined contribution plan • Most popular perk: Company car or car allowance (578 responses or 34%) • Most popular employment contract provision: Change-in-control/severance (604 or 35%)

  19. Questions? • Suggestions for follow research on this project? • Suggestions for other types of research?

  20. Stay in Touch Cheryl Graziano Vice President Research and Operations FERF (973) 765-1064 cgraziano@fei.org

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