Finance chiefs at middle-market companies can expect a base salary of at least $350,000 a year, according to new research by Pennsylvania-based executive search firm JM Search.
In a survey of 312 CFOs across the U.S., the “most prevalent” base salary range for those working at middle-market companies fell between $350,000 and $399,000. JM Search defined “middle market” as businesses with revenue between $100 million and $500 million.
Thirty-nine percent of CFOs at organizations with $250 million to $499 million in revenue said they made at least $350,000, according to the survey. For finance chiefs at companies reporting $100 million to $249 million in revenue, the share of respondents earning that same salary was 29%.
Perhaps unsurprisingly, salaries ticked up at organizations with greater revenue. For instance, 38% of respondents at companies with revenue exceeding $500 million said they made $400,000 to $449,000 a year in base salary. Few respondents at middle-market firms reported salaries over $500,000. (Just 3% of those at companies with revenue between $100 million and $249 million, and none for those at companies with revenue between $250 million and $499 million.)
When it comes to bonuses at middle-market firms, JM Search researchers said a “50%-59% target bonus range is standard.” Notably, that’s in line with bonus structures at bigger organizations. “For CFOs of large companies, the standard target bonus range is also 50%-59%, but nearly one-third (31%) earn bonuses greater than 60% of their salary,” JM Search officials said in the report.
JM Search’s research largely focused on companies owned by private equity or growth equity firms, an area many more CFOs are finding themselves working around nowadays as PE’s involvement picks up both in business and public accounting alike. In the survey, 68% of respondents said they worked at such businesses. It’s a reflection of JM Search’s “core client and candidate base,” but the study is intended to provide “insights into the broader CFO market,” spokeswoman Jessica Reilly said in an email. “The 68% representation from PE/growth equity-backed companies reflects both our strong presence in this sector and the overall composition of our network,” she said.
Just 10% of respondents worked at venture capital-backed firms, and another 16.5% worked at privately held companies. Only 4.5% of respondents worked at publicly traded firms.
JM Search officials also found “clear patterns” in the way CFOs build their finance teams at organizations of varying sizes, Reilly noted. “Smaller companies focus on hiring controllers, mid-market companies add both controllers and FP&A, while larger companies prioritize FP&A hires,” she said. “The data on how finance teams evolve as companies scale also resonated with our partners.”
