CFO pay jumps 66% at major industrial spinoffs
Source: Fortune ·
A CAP study finds median one-time transaction awards for CFOs were $1 million, separate from recurring compensation and recruitment packages.
From the source
Good morning. CFOs at newly independent companies can see substantial increases in compensation. A Compensation Advisory Partners (CAP) study of industrial and manufacturing spinoffs, shared with CFO Daily, found that median target total compensation rose roughly 66% for “SpinCo” CFOs with comparable pre- and post-transaction pay disclosures, compared with 57% for CEOs. CFO salaries rose 11%, while annual long-term incentive opportunities increased 102%. The study covered 19 major separations involving 29 resulting companies. Median revenue was $11.8 billion for parent companies before the transaction and $5.2 billion for the resulting companies. The larger equity packages reflect the shift from divisional leadership to the top ranks of a standalone public company, Ryan Colucci, a CAP partner and author of the report, told me. “The buck stops with you now,” he said. That expanded responsibility also helps explain a striking difference in hiring patterns. While 79% of SpinCo CEOs came…