AFP Press Release

Finance Professionals Receive Profitable Pay Packages In 2004

The Association for Financial Professionals 2004 Compensation Survey Reveals Salaries of Financial Professionals Continue to Climb

BETHESDA, MD – July 19, 2004 – Despite a lukewarm job market financial professionals continue to receive solid salary increases according to the Association for Financial Professionals 2004 Compensation Survey. While salary increases are smaller than they were a decade ago, finance professionals experienced an average salary increase of 3.6% in 2004 compared to an average of 3.5% for all professional workers.

This year’s AFP Report contains salary information for 24 positions, 24 job descriptions and 54 organizational charts. The results show healthy salary increases across the board, with directors of treasury or finance receiving the highest increases. The survey also shows almost 90% of companies plan to grant salary raises in treasury and finance in 2004.

Sample Salary, Bonus, Total Compensation by Title

Title	Salary	Bonus	Total Compensation
CFO	$171,000	$68,700	$211,500
VP Finance	$150,700	$46,000	$174,800
Treasurer	$138,800	$42,700	$167,300
Assistant Treasurer	$111,400	$25,700	$129,500
Director of Treasury/Finance	$109,800	$26,100	$126,900
Manager of Treasury Operations	$83,700	$11,700	$89,500
Cash Manager	$61,500	$6,800	$64,100

Source: AFP's 2004 Compensation Report

Also, finance departments moved into positions of prominence within many companies. CFOs served as business advisors and shaped decisions, while treasurers and other financial managers delivered strategic objectives, anticipated emerging needs and developed creative solutions to business problems.

"In an effort to retain top performers, many companies have implemented diversified compensation structures. Employers are willing to provide strong incentives to managers who effectively enhance customer satisfaction and corporate responsibility" said Jim Kaitz, AFP’s president and CEO.

Other findings of the survey:

• The Whole Package: Total Compensation
  Average total compensation for financial professionals rose to $96,000 this past year. Several factors contributed to compensation levels and compensation varied between industries. For example, CFOs who work in the utility industry received salaries of $260,000, while CFOs who work in the government or non-profit industry received average pay at $131,200. Financial professionals in companies with revenues greater than $1 billion earned compensation of $44,000 more than their peers at companies with revenues less than $100 million. Also, public companies compensate higher than private companies. The average salary for financial staff in public companies was $29,100 higher than in private companies.
• Employers Pay for Performance
  Financial professionals received healthy bonuses over the past 12 months. On average, executives receive bonuses equal to 33% of their base salary. More than three out of four companies provide bonuses to reward financial professionals for their achievements, with cash bonuses occurring most often. Overall, half of the organizations surveyed by AFP base bonuses on company profits, directly linking pay to performance.
• The Power of Education
  An M.B.A. degree results in increased earning power, potential for promotions to top leadership positions and improved marketability. Treasurers who obtain an M.B.A. out-earn their non-M.B.A. peers by an average of $25,100. In a competitive job market certifications enable financial professionals to stay current and earn higher salaries. Controllers with a CPA averaged total compensation of $130,000, versus their counterparts without a CPA who earned $120,800.

The complete 161-page report is available for purchase by calling AFP’s Customer Services department at 301.907.2862 or the report is available at www.AFPonline.org/AFPstore. The full report costs $149.50 for members and $295.50 for non-members and is available immediately as a PDF download.

In addition, AFP offers Financial Career Coach service, which provides practical strategies for career advancement. To participate visit www.AFPonline.org/careerservices.

The Association for Financial Professionals in Bethesda, Maryland, supports more than 14,000 individual members from a wide range of industries throughout all stages of their careers in various aspects of treasury and financial management. AFP is the preferred resource for financial professionals for continuing education, financial tools and publications, career development, certifications, research, representation to legislators and regulators, and the development of industry standards.