At a glance
Earning potential
The salary of a CFO tends to be one of the highest in an organisation, especially when bonuses, incentives and worth by experience are taken into account.
The earning potential of a CFO depends largely on the size of their organisation. In the year to April 2023, Australia’s top 200 company CFOs saw their median salaries spike by 24 per cent to A$1.44 million.
At the same time, median statutory pay for the top ASX 300 CFOs increased by 9 per cent to $1.14 million, according to the CFO Remuneration Report 2023 from executive database OpenDirector.
Executive search firm Perceptor puts those figures slightly lower in its report, 2023-2024 Market Trends & Salary Review: Finance, Accounting and Commercial – see Table 1.
A group CFO at a large corporate can expect to earn between A$700,000 and A$900,000, plus bonuses and incentives, while a divisional CFO could make between A$350,000 and A$550,000 per year, the report says.
| Role | Company size | Salary range |
|---|---|---|
| Group CFO | Large corporate (ASX 100 or large multinational) | A$700,000-A$900,000 |
| Deputy CFO | Large corporate (ASX 100 or large multinational) |
A$400,000-A$600,000 |
| Divisional CFO | Large corporate (ASX 100 or large multinational) | A$350,000-A$550,000 |
| CFO | Medium-sized corporate | A$320,000-A$420,000 |
The salaries of CFOs of smaller companies are also on the rise. The 2023 Salary Guide from specialist recruitment firm Robert Half reveals that, on average, Sydney-based CFOs in large companies can expect to earn between A$266,505 and A$395,670 per year – see Table 2.
Their Melbourne counterparts are likely to earn between A$256,725 and A$381,150.
| Location | Company size | Median salary |
|---|---|---|
| Melbourne | Large of multinational | A$310,275 |
| Melbourne | Small-to-medium enterprise (SME) | A$202,650 |
| Sydney | Large of multinational |
A$322,095 |
| Sydney | SME |
A$210,370 |
| Brisbane | Large of multinational |
A$289,590 |
| Brisbane | SME |
A$189,140 |
| Perth | Large of multinational |
A$298,455 |
| Perth | SME |
A$194,930 |
| New Zealand | Large of multinational |
NZ$370,000 (A$343,130) |
| New Zealand | SME |
NZ$255,000 (A$236,490) |
| Mainland China | Large of multinational |
¥2,045,000 (A$431,183) |
| Mainland China | SME |
¥1,704,000 (A$359,284) |
| Singapore | All | S$357,000 (A$403,860) |
| Hong Kong | Large of multinational |
HK$2,548,000 (A$494,600) |
| Hong Kong | SME | HK$1,261,000 (A$244.776) |
CFO salaries in Asia and New Zealand remain a little higher than in Australia.
For instance, Robert Half’s guide shows that CFOs in large firms in Mainland China can expect to earn between ¥1,704,000 (A$363,088) and ¥2,727,000 (A$581,068) per year.
Their Hong Kong counterparts can expect to earn between HK$1,684,000 (A$326,709) and HK$3,640,000 (A$706,189) per year and, in Singapore, between S$315,000 (A$356,331) and S$378,000 (A$427,597).
Key financial trends
The Perceptor report also notes that, while CFO salaries in Australia have increased by 10 to 15 per cent in the last couple of years, the slowing market indicates there will be lower increases of up to 5 per cent for senior finance roles in 2024.
Key financial trends, such as high inflation and rising household costs, may lead many executives to seek new roles in 2024, Perceptor says.
Some CFOs are conscious of going backwards financially if pay rises are less than 7 per cent and not in line with inflation, which puts a greater focus on salary increases and bonus payments. This could be a catalyst for Australian CFOs to consider moving companies if they feel there are better paid opportunities elsewhere.
In Asia, with internal promotions gaining prominence, CFOs may have fewer opportunities to move around.
According to global recruiter Russell Reynolds, 60 per cent of incoming CFOs worldwide were appointed internally in 2023, including 100 per cent of incoming CFOs in the Tokyo Nikkei 225, 100 per cent of incoming CFOs in the Indian Nifty 50 and 92 per cent of incoming CFOs in the Hong Kong Hang Seng.
The growth of private equity and the move of some highly experienced CFOs away from large firms are other key trends to watch for in 2024.
“Many of the opportunities for career progression are in the mid-sized company market,” says Ian McAlpine, finance, accounting and commercial managing director at Perceptor.
“That is probably a trend over the last 10 years, and I think it will continue as private equity raises more money and buys and sells more businesses in the mid-sized space,” he says.
“You have very high-calibre CFOs in the entrepreneurial, privately owned business space. They raise the bar in terms of how these companies operate, how professional they are, how astute they are and how they grow the business.
Many of these CFOs will be expecting remuneration in line with the large firms they have come from.
“If you want someone of a certain calibre, you generally have to pay for them,” McAlpine says, adding the emphasis will probably shift to large bonuses and long-term incentives.
“You entice a bigger company CFO by offering a lucrative long-term incentive arrangement, which may depend on the company doing very well over three to five years.”
