CFOs Make Up To $400,000

Compensation in the Accounting/Financial Field, 20th Edition

PUBLISHED: December 2001

Summary of the 495-page Compensation in the Accounting/Financial Field, 20th Edition survey report of 40 benchmark jobs from Abbott, Langer & Associates, Inc.  The following describes the highest and lowest paid job characteristics, the national median total cash compensation for 14 benchmark jobs, and the factors affecting salary (Geographic Area, Type of Organization, Size of Organization, Fiscal Size, Functional Area, Length of Experience, Education, Certified Public Accountant, and Supervisory Responsibility).

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The composite practitioner in the accounting/financial field with the highest annual income (salary plus cash bonus/cash profit sharing) is a Chief Corporate Financial Officer with over ten years experience in the field who has a bachelor's or master's degree and oversees five or more employees. He or she is employed by a construction, land development, or engineering firm; a health care organization; a financial organization; or an automotive parts & accessories manufacturer.

The organization probably has an annual revenue of $100 million or more and 50 or more employees, and is headquartered in or near San Francisco/Oakland, Indianapolis, Sacramento, Miami, Detroit, Dallas/Ft. Worth, or New York City, or outside the metropolitan areas studied in Alabama, Texas, California, or Indiana.

While the median Chief Corporate Financial Officer makes $100,533 per year, the highest-paid individuals reported in the group make well over $400,000 annually.

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Far to the other end of the income spectrum, junior account clerks have a median salary of $24,380. Some making under $17,000, the composite lowest-paid junior account clerk works in accounts receivable or accounts payable for a nonprofit organization, a manufacturer of drugs & medicine, an educational institution, a financial organization, or a health care organization with annual sales or budget of under $50,000,000 and a staff of 100 to 249 employees. The organization is headquartered in or near Baltimore, Chicago, Gary/Hammond/East Chicago, Omaha, or Seattle/Everett, or outside the metropolitan areas studied in Minnesota, Missouri, Montana, Alabama, Indiana, or New York.

This information is a small sample of what can be found in Compensation in the Accounting/Financial Field, 20th Edition, a 495-page statistical analysis of current salaries and total cash compensation of 40 benchmark jobs in the field. Usable survey data for over 2,000 individuals were received from 234 organizations in the business, industry, government, and non- profit fields. Copies can be purchased for $750.00 through our On-Line Order Form or from Abbott, Langer & Associates, Inc., Dept. NET, 548 First St., Crete, IL 60417 (telephone 708/672-4200; fax 708/672-4674).

The median annual incomes (salaries plus cash bonuses & cash profit sharing) of the some of the more common jobs in the accounting/financial field are:

Naturally, these nation-wide pay rates vary by region, state & metropolitan area, type and size of firm, type of work performed/supervised/managed, level of education, length of experience, and supervisory/managerial responsibility involved - all demographic variables for which data are provided in the complete report.

Geographic Area

Median income of supervisory/managerial personnel is highest in the Pacific, northeastern, and southern states, and lowest in the Rocky Mountain, north central, southwestern, and midwestern states. Non-supervisory accountants & auditors fare best in the Pacific, midwestern, and northeastern states, and lowest in the north central, southwestern, Rocky Mountain, and southern states. Account clerks & payroll clerks are paid best in the Pacific, southwestern, and northeastern states, and least well in the Rocky Mountain, north central, midwestern and southern states.

Among the many metropolitan areas studied, San Francisco/Oakland ranked highest in income for supervisory & managerial personnel, followed by San Jose, Sacramento, Detroit, Stamford/Nor- walk/Bridgeport (CT), Boston, Arlington/Alexandria, and New York City. Jacksonville ranked lowest, preceded by Portland (OR), Cleveland, Providence, Cincinnati, Minneapolis/St. Paul, Milwaukee, and Baton Rouge.

For non-supervisory accountants & auditors, the highest-paying metropolitan area was Stamford/Norwalk/Bridgeport, followed by San Francisco/Oakland, Tampa/St. Petersburg, Dallas/Ft. Worth, Washington (DC), Baltimore, Greensboro/Winston-Salem, and Arlington/Alexandria. Jacksonville ranked lowest, preceded by Cincinnati, New Orleans, Baton Rouge, Providence, and Los Angeles/Long Beach/San Diego.

Account clerks & payroll clerks were best paid in San Francisco/Oakland, Washington (DC), Arlington/Alexandria, Dallas/Ft. Worth, Greensboro/Winston-Salem, and Indianapolis, and lowest paid in Jacksonville, Chesapeake/Hampton/Portsmouth, Detroit, San Antonio, Kansas City, Boston, and Hartford.

Type of Organization

Among the many types of employer studied, manufacturers of communications equipment paid best for supervisory & managerial personnel, followed by construction/land development/engineering firms, transportation services, and merchandising firms, and paid least well by educational institutions, manufacturers of food/beverage/tobacco products, communications services, and state & local governments.

For non-supervisory accountants & auditors, the highest-paying industries were research organizations & laboratories, manufacturers of rubber & plastic products, printing firms, and construction/land development/engineering firms. The lowest- paying were educational institutions, nonprofit organizations, automobile parts & accessories manufacturers, state & local governments, and health care organizations.

Account clerks & payroll clerks were paid best by printing firms, research organizations & laboratories, chemical & allied products manufacturers, and construction/land development/engineering firms; and least-well paid by manufacturers of furniture & wood products, educational institutions, health care organizations, and financial organizations.

Size of Organization

Number of employees is not a good predictor of overall income in the accounting/financial field. However, the median incomes of higher-level jobs do tend to increase regularly as the size of the organization increases. For example, Chief Corporate Financial Officers in organizations with 1,000 to 2,499 employees have a median income of $130,000, 48% higher than the $87,576 of those in organizations with 50-99 employees. The increase in income with size of organization does not always hold true in the lower-level jobs surveyed.

Fiscal Size

Like the preceding factor, the increase in income by fiscal size of organization does not always hold true in the lower-level jobs surveyed. However, the median incomes of higher-level jobs do tend to increase regularly as the size of the organization increases. For example, Chief Corporate Financial Officers in non-manufacturing organizations with annual sales of $100,000,000 or more have a median income of $186,600, 279% higher than the $49,264 of those in organizations with annual sales of $2,500,000 to $4,999,999.

Functional Area

On an overall basis, median income is highest for Accounting Managers in the field of taxation, followed by financial analysis/planning and general accounting functions, with Auditing Managers lowest with a median income of $66,643. Supervising Auditors are paid best, followed by Supervising Accountants in accounts payable, payroll, and general accounting functions.

Non-supervisory Senior Accountants are paid best in the taxation field, with cost accounting, auditing, financial analysis/ planning, and general accounting following behind. Accountants fare best when employed in cost accounting. Financial analysis/planning, auditing, general accounting, and taxation functions pay less well. Junior Accountants are primarily employed in general accounting and auditing.

Median incomes are highest for Senior Account Clerks in the accounts receivable function, followed by the general accounting and accounts payable functions. Median income of Account Clerks is highest in the credit/collection, accounts payable, and accounts receivable functions; lowest in the cost accounting and general accounting functions.

Junior Account Clerks fare best in the accounts payable function, followed by the accounts receivable and general accounting functions.

Length of Experience

This factor is a fair predictor of income in the accounting/ financial field. For example, supervisory/managerial accountants & auditors with 25 or more years of experience have a median income 50% greater than that of those with three or four years of experience. A similar pattern is found among non-supervisory accountants & auditors and account clerks & payroll clerks.

Education

This variable is also a good overall predictor of income in the accounting/financial field. The median income of supervisory/managerial staff with MBAs is $92,000, 94% higher than that of those who do not have a college degree, 42% higher than that of those with Bachelor degrees, but only 14% higher than that of those holding other Master's degrees. The pattern is similar but less-pronounced among non-supervisory accountants & auditors.

Certified Public Accountant

Not surprisingly, holders of the CPA fared better than those in the field who did not hold the CPA. The median income of supervisory/managerial staff with the CPA was 32% higher than that of those who do not hold the CPA. For example, the median income for Chief Corporate Financial Officers holding the CPA is $114,975, 17% higher than those not holding the CPA. The pattern is similar but less-pronounced among non-supervisory accountants & auditors.

Supervisory Responsibility

This factor is a good predictor of overall income in the field. The median income of supervisory/managerial personnel increases by 118% from the income of those supervising one or two professionals to those supervising 25 or more professionals. For example, Chief Corporate Financial Officers have a median income of $84,646 when supervising under five professionals and non- professionals, $101,534 when supervising five to nine professionals and non-professionals, $107,500 when directing ten or more professionals, and $175,000 when directing 10 to 24 professionals.

the 495-page survey report, Compensation in the Accounting/Financial Field, 20th Edition, described on this page for $750, with charges for shipping & handling (and IL sales tax, if applicable). The report is IN STOCK and can be shipped out within two business days. The mean, median, 1st and 3rd quartile, and 1st and 9th decile data for base salary, and total annual cash compensation are reported for many demographic variables, including education, experience, geographic location, type and size of employer, etc. To purchase the report, use our On-Line Order Form, call 708/672-4200, email, fax, or write per the information at the bottom of this page.

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