Earlier this week, the Financial Executives Research Foundation (FERF), the research affiliate of Financial Executives International, released its 3rd annual Financial Executive Compensation Survey. According to the study, a growing percentage of respondents did not receive a salary increase. Those who did receive increases experienced a slight dip percentage-wise compared with the average salary increase they received in the previous year, while the breadth and depth of their responsibilities continues to expand. However, nearly all of financial executives still reported a bonus in 2008.
Cheryl de Mesa Graziano, Vice President, Research and Operations for FERF, said, "As the debate over salaries and cash-based bonuses continues to intensify, companies will be examining other types of compensation benefits as a means to award and retain professionals." She added, "Our survey results reveal this challenge as decreases in retirement and long-term cash pay come with increases in stock-based long-term awards. Also, though most companies are commonly using company goals to evaluate performance, this year's survey surprisingly reveals a decreased emphasis on individual goals, with more companies choosing EBITDA as a form of measurement." See further details in the press release, order the report from the FERF bookstore (free to FEI members).
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Saturday, May 2, 2009
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Related coverage of study:
Forbes.com
http://www.forbes.com/2009/04/30/cfo-salaries-bonuses-leadership-governance-compensation.html
CFO.com
http://www.cfo.com/article.cfm/13570342/?f=rsspage
MarketWatch streaming video web site, and the business section of the Wall Street Journal Online Video Network http://online.wsj.com/video/bonuses-still-big-on-wall-street/16B6FD1A-0914-4B25-9662-DC5D2F34CF07.html
Accounting & Compliance Alert
WebCPA – syndicated on Financial Planning, On Wall Street, Bank Investment Consultant
Forem Financial Loss Mitigation Specialist’s blog
Thanks for the additional cites, Cheryl!
Additional coverage on May 5 by Bureau of National Affairs.
Yeah this is true. I have read this earlier also that around the world top executive will not receive their salary hikes due to this ongoing economic crisis.
This is one of the way to do cost cutting.
This is a general trend all over. No salary hikes, no incentives, no other benefits. This is an outcome of recession. Soon market will cope up the losses.
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This is a way of cost cutting only. I think this is required in economic crisis and there in no other way.
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This is the story everywhere, employees and employers both are victim of recession only. We cannot blame anyone for this.
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I must say Financial Executive blog is really a knowledge bank. I was going through your blogs and come across many great posts.
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