Whether it is a small start-up or a large established organisation, the demand for Chief Financial Officers (CFOs) is high in India. CFOs help industries identify investment opportunities, cost-cutting measures, and acquisition strategies, adding significant value to their organisations. The Chief Financial Officer is a key member of the C-suite, which includes top executives like the Chief Executive Officer (CEO), Chief Operating Officer (COO), and Chief Information Officer (CIO). Being a senior executive, the CFO salary in India can be substantial, depending on the size of the company. Let us examine the details of CFO salary in India and understand their earnings.
What is a Chief Financial Officer (CFO)?
A Chief Financial Officer (CFO) is a senior professional in an organisation who oversees everything from financial matters to taxation issues. The CFO holds the highest position in the financial department and is often the third-highest-ranking executive in an organisation. The roles and responsibilities of a CFO include managing cash flow, building a strong finance and accounting team, overseeing financial planning, analysing financial strengths and weaknesses, ensuring revenues and expenditures are on track, and recommending corrective actions.
Now that we understand the role of a Chief Financial Officer (CFO), let us review the Chief Financial Officer salary, specifically focusing on CFO India.
Average CFO Salary in India
After the CEO, the Chief Financial Officer is typically the second-highest-paid executive in most organisations. The average CFO salary in India is Rs. 74,273 per month. However, the CFO salary in India range varies based on several factors, such as:
- Company size
- Company location
- CFO qualifications
- Years of experience
In larger organisations, CFO salary in India is around Rs. 4-6 crore. The overall compensation package, including bonuses, can reach up to Rs. 12-16 crore, depending on the company's size. While CFOs can earn substantial salaries throughout their careers, possessing certifications in accounting and finance, such as CMA or CPA, combined with extensive work experience, can significantly enhance earning potential in the CFO India role.
Chief Financial Officer Salary: Additional CFO Compensation
In addition to the CFO salary in India, CFOs receive various forms of additional compensation. Here is a list of some supplementary benefits that can contribute to the average CFO salary in India, although they may vary 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 succeed as a Chief Financial Officer, you need the following skills:
- Leadership Skills
- Management Skills
- Financial Capability
- Data Analysis Skills
- Problem-solving Skills
- Communication Skills
- Integrity
Conclusion
The Chief Financial Officer is a high-level executive responsible for managing a company’s cash flows, financial planning, and taxation issues. Additionally, a CFO plays a vital role in an organisation's strategic initiatives which is seen as we looked into CFO salary in India. As the highest-ranking financial position, the CFO ensures accurate and timely financial reporting. This role is not only one of the top-level positions but also among the highest-paid jobs in an organisation.
Now that you understand the CFO salary in India, it is essential to enhance your leadership and management skills to succeed as a CFO. Enrol in the CFO course by the Indian School of Business (ISB) in collaboration with Imarticus Learning. This 8-month programme will teach you to think strategically, build an efficient team, and drive growth effectively.
