Source: Fortune
Summary
According to a report by Compensation Advisory Partners, CFO pay is rising, but not in the way you might expect. Total direct compensation for CFOs rose 8% in 2025, while CEOs saw a 9% increase. The shift reflects strong corporate performance and a focus on executive retention. Long-term equity awards jumped 12% for CFOs and 9% for CEOs, accounting for 63% and 73% of pay, respectively.
Our Reading
The numbers tell one story.
CFOs and CEOs are seeing pay growth converge, with long-term incentives becoming a key retention tool. Pay growth is tied to performance, and companies are using long-term equity awards to lock in executives. Base salaries remain a small component of compensation, with CFOs receiving a median increase of 3.7% in 2025. The ratio of CFO to CEO pay remains steady at about one-third, despite the CFO role’s expansion.
Long-term equity becomes the real retention tool.
AI is still evolving in compensation plans.
The strategy enters a familiar phase: retention and alignment with shareholders.
Pay growth is not just about the numbers; it’s about the message companies send to executives and shareholders.
Author: Evan Null
