Whether it’s a small or big, start-up or an established organisation, the demand for Chief Financial Officers is high in India. The Chief Financial Officers (CFOs) help the industries find opportunities for investments, cost-cutting and acquisition strategies, helping produce additional value for the organisation. In fact, the Chief Financial Officer is a member of the C-suite that describes the top-most executives in a company, including the Chief Executive Officer (CEO), the Chief Operating Officer (COO) and the Chief Information Officer (CIO). Being a senior executive of a company, the Chief Financial Officer salary can go high, depending on the size of the company. Hence, let’s look at the Chief Financial Officer salary in detail and how much they make. Â
What is a Chief Financial Officer (CFO)?
A Chief Financial Officer (CFO) is a top-level senior professional in an organisation who manages everything, from the financial matters of the business to taxation issues. A CFO is considered the highest position in the financial department and the third-highest in an organisation. The CFO’s roles and responsibilities include keeping a tab on cash flow, building an excellent finance and accounting team, managing financial planning, analysing the organisation’s financial strengths and weaknesses, ensuring revenues and expenditures stay on track, and proposing curative actions.Â
Average CFO Salary
After the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) is the second-highest-paid senior executive in most organisations. The average CFO salary is Rs. 74,273 per month; however, the CFO salary range depends on several factors, such as:
- Company size
- Company location
- CFO qualifications
- Years of experience
If working in big organisations, CFOs can draw an average salary of around Rs. 4-6 crore. However, the overall package of CFOs, including compensation, can rise up to Rs. 12-16 crore, based on the company’s size they are associated with.Â
Though CFOs can make great earnings for most of their career, if you have an accounting and financing certification, like CMA or CPA, with good experience in work, then it will definitely make a difference and surge your earning power as a CFO.
Chief Financial Salary: Additional CFO Compensation
As salary isn’t the only payment received in a year, but additional compensation is also included. So, here is a list of some additional compensation for the average CFO salary. However, it varies from company to company.
- Incentive compensation
- Long-term incentives (pay packages)
- Incentive stock plans
- Supplementary life insurance
- Supplementary disability insurance
- Long-term care insurance
- Supplementary medical insurance
- Vacation allowances
- Leave of absence allowances
- No additional cost services
- Employee discounts
- Retirement plans
Required Skills to be a Successful CFO
To become a successful Chief Financial Officer (CFO), you must have the following skills:
- Leadership Skills
- Management skills
- Financial Capability
- Data Analysis Skills
- Problem-solving Skills
- Communication Skills
- Integrity
Conclusion
The Chief Financial Officer is the highest-level executive in an organisation who handles everything, from a company's cash flows to financial planning and taxation issues. Additionally, a CFO plays a crucial role in the strategic initiatives of an organisation. Considered the highest financial position in a company, the CFOs ensure that the financial reports of an organisation are correct and accomplished in an appropriate manner. The CFO is not only the top-level position in an organisation, but it is also the highest-paid job.Â
Now that you know the Chief Financial Officer salary in India, it is important to enhance your leadership and management skills in an impactful way to be a successful CFO. Â
So, enrol now in the CFO programme by the Indian School of Business (ISB) in collaboration with Imarticus Learning. This is an 8-month programme that will make you learn how to think prudently, build an efficient team and boost growth effectually.Â
