2015 AFP. Compensation Report. Key Highlights

Transcription

1 2015 AFP Compensation Report Key Highlights

2 2015 AFP Compensation Report Key Highlights Introduction Methodology Key Highlights About the Survey 2015 AFP Compensation Report A more detailed version of the 2015 AFP Compensation Report comprising an executive summary, recently updated job descriptions of the 20 tracked job titles as well as detailed compensation data tables is available exclusively to AFP Members. This comprehensive report includes a position description for each job title and compensation data tables based on number of employees, organization gross annual revenue, employees years of work experience, education, geographic region and industry. Means and quartiles of Base Salary, Bonus and Total Compensation are reported for these categories.

3 Introduction The Association for Financial Professionals (AFP) is dedicated to providing treasury and finance professionals with relevant and accurate information about resources that can support and tools to help advance their careers. In keeping with this mission, we are pleased to present the results of the 2015 AFP Compensation Survey. These are the highlights of the 27th annual AFP Compensation Report. The full report provides detailed job description and salary information for 20 different job titles in seven different industries across the four major census regions of the U.S. This year s report includes compensation data for four additional job titles: FP&A Director, FP&A Manager, FP&A Senior Analyst and FP&A Analyst. The information in the full report can enable finance professionals to evaluate compensation levels both within and across peer groups, including comparisons on experience, education level and organizational characteristics. Methodology In February 2015, AFP conducted its 2015 AFP Compensation Survey. The survey collected data on total compensation earned by finance professionals during calendar year 2014 as well as data on base salaries effective January 1, Compensation was defined as salary plus any bonuses awarded. The survey was sent to treasury and finance professionals with diverse corporate profiles. (For more information on respondent demographics, see page 5.) The survey also asked senior level finance professionals to provide compensation information for their organizations entire treasury and finance staff. Over 3,300 professionals responded on behalf of more than 4,200 incumbents holding the 20 job titles tracked. AFP thanks all the respondents who participated in this research. We are confident that you will find the data and analysis in the 2015 AFP Compensation Report to be useful, timely and valuable in managing your own career and/or an effective resource in benchmarking compensation costs for finance professionals in your organizations as well as prospective employees. If you have any questions about the content of this report, please contact AFP at or AFP Research at research@afponline.org Economic Environment At the time the 2015 AFP Compensation Survey was conducted, the U.S. economy was exhibiting signs of gradual recovery and growing at a moderate pace. Real gross domestic product grew at an annual rate of 5.0 percent in the third quarter of 2014 and 2.2 percent in the fourth quarter. 1 In March of 2015, there were 8.6 million unemployed persons and the unemployment rate was holding steady at 5.5 percent. Over the year, the unemployment rate and the number of unemployed persons were down by 1.1 percentage points and 1.8 million, respectively Source: Bureau of Economic Analysis; real GDP is the measure of the value of the output of goods and services, adjusted for price changes. 2. Source: Bureau of Labor Statistics Association for Financial Professionals 1

4 Key Highlights Salary Finance professionals realized a 4.1 percent gain in their base salaries during 2014, an increase from the 3.8 percent increase reported in last year s survey. Within the Management tier, Cash Managers obtained the highest average salary increase of 8.3 percent. Exhibit 1: Average Salary Increase % Increase in Base Salary Job Tier Executive 3.5% 3.5% 3.8% 3.3% 3.2% 2.5% Management 4.6% 4.0% 3.5% 3.7% 2.7% 2.5% Staff 3.4% 4.1% 3.1% 3.5% 2.9% 2.7% *From January 1 of the earlier year to January 1 of later year Bonuses 72 percent of organizations awarded bonuses to their employees in Average bonus for Executive level professionals was $57,500 or 34 percent of base salary. Exhibit 2: Average Bonuses Awarded in * Year Average % of Average % of Average % of Job Tier Bonus Base Salary Bonus Base Salary Bonus Base Salary Executive $57,500 34% $54,632 34% $57,962 35% Management $19,534 19% $16,357 17% $17,501 18% Staff $4,403 8% $5,874 10% $5,014 9% *Average bonus awarded to finance professionals at organizations that offered bonuses Association for Financial Professionals

5 Career Advancement Increased job responsibility and employee contribution to profitability are most often-cited criteria for upward mobility. Exhibit 3: Factors Influencing Career Advancement in Organization s Treasury/Finance Department (Percent of Organizations) Increased job responsibility 86% Contribution to profitability 70% MBA or other advanced degree 37% CTP or CCM CPA 27% 26% CFA CMA CIA 2% 6% 8% Education Finance professionals with a MBA or graduate degree earned an average salary that was more than $9,000 higher than that of their counterparts who held only a bachelor s degree Exhibit 4: Average Increase in 2014 Base Salary for Finance Professionals with a MBA Average $ Average % Job Tier Difference Increase Executive $8,664 5% Management $11,733 12% Staff $3,176 6% Association for Financial Professionals 3

6 Geographic Region The typical finance professional working at organizations located in the Northeast earned the largest base salary a mean of $113,671 annually. Exhibit 5: Average Base Salaries by Geographic Region $113,671 $112,401 $104,891 $101,943 Northeast West South Midwest Industry In 2014, average base salaries ranged from a low of $91,302 for finance professionals in the Government/Non-profit sector to a high of $119,899 for those in the Energy/Utility sector. Exhibit 6: Average Base Salaries by Industry $119,899 $115,854 $112,921 $107,882 $107,724 $105,344 $91,302 Energy/ Utility Technology Services Manufacturing/ Construction Business Services Retail/ Distribution/ Transportation General Services Government Non-Profit Association for Financial Professionals

7 About the Survey In February 2015, the Association for Financial Professionals (AFP) conducted its 27th Annual Compensation Survey. Results of the survey were aggregated and analyzed and the findings are published in the full report, which is exclusively available to AFP members. Compensation information for 20 finance, treasury and accounting positions were evaluated based on education, geographic region, industry, company size, gross revenue and years of experience. The report presents analysis on pay structures, documents general compensation trends for the finance profession and includes job descriptions for the 20 positions. Profile of Participants The compensation tables feature data collected from over 4,200 incumbents at over 2,800 companies. The data used for these tables reflect a diverse respondent base. Exhibit A: Company Size: Number of Employees (Percentage Distribution of Organizations) Exhibit B: Company Size: Annual Revenue (Percentage Distribution of Organizations) % 20% 26% 18% 9% 4% 7% 7% ,000-4,999 5,000-9,999 47% 24% 29% Under $100 Million $ Million $1 Billion and Over 10,000+ Exhibit C: Company Region (Percentage Distribution of Organizations) Exhibit D: Industry (Percentage Distribution of Organizations) Business/ Financial Services West 18% Midwest 21% Northeast 18% 24% 12% 12% 24% General Services Technology Services Government/ Non-Profit South 35% 9% 10% 10% Energy/Utility Manufacturing/ Construction Retail/ Distribution/ Transportation Association for Financial Professionals 5

8 AFP Research AFP Research provides financial professionals with proprietary and timely research that drives business performance. AFP Research draws on the knowledge of the Association s members and its subject matter experts in areas that include bank relationship management, risk management, payments, and financial accounting and reporting. Study reports on a variety of topics, including AFP s annual compensation survey, are available online at About the Association for Financial Professionals Headquartered outside Washington, D.C., the Association for Financial Professionals (AFP) is the professional society that represents finance executives globally. AFP established and administers the Certified Treasury Professional TM and Certified Corporate FP&A Professional TM credentials, which set standards of excellence in finance. The quarterly AFP Corporate Cash Indicators serve as a bellwether of economic growth. The AFP Annual Conference is the largest networking event for corporate finance professionals in the world. AFP, Association for Financial Professionals, Certified Treasury Professional, and Certified Corporate Financial Planning & Analysis Professional are registered trademarks of the Association for Financial Professionals Association for Financial Professionals, Inc. All Rights Reserved. General Inquiries AFP@AFPonline.org Web Site Phone