Treasury and finance professionals earned an average 3.5 percent base salary increase in 2018, according to the 2019 AFP Compensation Survey. Executive and management-tier professionals enjoyed raises of 3.2 percent and 3.6, respectively, while staff garnered a 3.9 percent raise, according to the new report.
Nearly 70 percent of all employees were awarded bonuses in 2018; that figure is essentially unchanged from the year before. Executives’ bonuses increased 23 percent, possibly due to receiving greater salary hikes from incentive compensation instead of traditional pay increases. Fully 61 percent of organizations awarded bonuses based on operating income/EBITDA targets.
More than 3,500 treasury and finance professionals took part in the survey. When asked about upward mobility and career advancement the criterion respondents cited most often was “increased job responsibility” at 86 percent. Other factors include:
- Contribution to profitability (69 percent of respondents)
- Earning a professional certification such as AFP’s Certified Treasury Professional or Certified Cash Manager (36 percent)
- Earning a MBA or other advanced degree (30 percent).
When asked about critical job competencies and talent gaps, the skill respondents cited most was “strong analytical skills” at 55 percent followed by “leadership and people management” (37 percent). However, 37 percent believe financial professionals lack leadership and people management skills and one third say their colleagues are wanting in strategic and innovative skills.
“The 2019 AFP Compensation Survey underscores the contributions treasury and finance professionals make to their organizations,” said Jim Kaitz, president and CEO of AFP. “Yet the survey also reveals a skills gap. Treasury and finance professionals need to invest in their careers to stay relevant, especially in this age of digital disruption.”
Comprehensive 2019 AFP Compensation Survey results are available at http://www.afponline.org/CompReport/.