The Advisors' Blog

This report on 2025 CFO compensation from Compensation Advisory Partners (CAP) examines pay outcomes for CFOs in comparison to CEOs based on a sample of 140 companies with a median revenue of $15.6 billion. Here are some of their key findings:

– The median change in base salary in 2025 was 3.7% for CFOs and 2.1% for CEOs

– Median target bonus opportunities remained consistent for CFOs at 100% of salary and increased slightly for CEOs to 162.5% of salary (from 160% in 2024)

– LTI awards increased significantly, 12% for CFOs and 9% for CEOs at median, which is almost double the increase from last year (7% and 5%, respectively). LTI often leads other elements of pay in magnitude of increase. Over the 10-year period from 2016 through 2025, LTI awards have increased an average of 8.7% and 7.0% per year for CFOs and CEOs, respectively

– TDC increases in 2025 were approximately 8% for CFOs and 9% for CEOs at median. This is the first time in several years where the TDC increases for CFOs and CEOs are very close, driven by strong performance and increased focus on retention of key talent in this environment

– CFO total compensation as a percentage of CEO total compensation remains at approximately 1/3 in 2025

– CFO pay consists of 63% long-term incentives (73% for CEOs) in 2025

– Meredith Ervine