In 2022, the CFO at 20 S&P 500 companies earned at least 50% of the CEO’s pay.

In 2022, the CFO at 20 S&P 500 companies earned at least 50% of the CEO's pay.

The CFO’s Big Payday: Breaking Gender Stereotypes

CFO Compensation

It pays to be a CFO. According to a review of compensation numbers by data company Equilar, CFOs at S&P 500 companies earned 50% or more of the CEO’s total compensation in 2022. This revelation challenges the traditional notion that the CEO is the highest-paid executive in a company.

One company that stood out for its high CFO-CEO pay ratio was Gen Digital. CFO Natalie Derse earned $12.1 million, approximately 89% of CEO Vincent Pilette’s pay. Another notable example is The Walt Disney Company, where former CFO Christine M. McCarthy earned $20.2 million, around 83% of former CEO Bob Chapek’s pay. It’s interesting to note that CFOs like Derse and McCarthy are breaking the glass ceiling by earning a significant portion of their CEO’s pay.

The rise in CFO compensation relative to CEOs is a trend observed over the past decade. In an analysis of Equilar’s data, CFOs experienced the largest gains when compared to other C-suite positions. Among the 10 companies studied, CFO pay increased from an average of 34% of the CEO’s pay in 2012 to 44% in 2022.

Former HR chief at Google and co-founder of Humu, Laszlo Bock, explains this shift in compensation dynamics. He notes that there is now less financial incentive to be a CEO. The compensation for C-suite executives below the CEO level has been rising at a higher rate than that of the CEO. This finding challenges the assumption that being a CEO guarantees the highest pay within a company.

The finance field as a whole had a good payday in 2022. According to Mariam Lamech, director of survey research at the Association for Financial Professionals (AFP), treasury and finance professionals received a 5% increase in their base salaries, the largest increase seen in the past 10 years.

While the gender pay gap remains an issue across industries, these findings indicate progress in breaking gender stereotypes in executive roles. CFOs like Natalie Derse and Christine M. McCarthy are demonstrating that women can hold top finance positions and earn a significant portion of their CEO’s pay. This serves as an encouraging example for aspiring financial professionals, regardless of gender, who aspire to lead and be well-compensated in their roles.

Decline in Global Private Equity and Venture Capital Deals

Private Equity

In July, global private equity and venture capital deal volume declined significantly, dropping 36% to 828 deals compared to the previous year. The total deal value for the year was down 44% to $275.89 billion. Additionally, the number of deals dropped to 6,850 from nearly 11,000 for the measured period since 2021, according to S&P Global Market Intelligence.

These figures indicate a significant slowdown in private equity and venture capital activity, signaling cautious investor sentiment. The decline in deal volume and value reflects the challenges posed by the ongoing uncertainty in global markets.

The impact of this slowdown could have far-reaching consequences for startups and businesses seeking funding. The availability of venture capital and private equity funding plays a critical role in supporting the growth and innovation of these companies. For entrepreneurs and founders, understanding the changing market dynamics and adapting their strategies accordingly will be essential.

The ESG Gap: Discrepancy between Reported and Actual Investments

The debate surrounding environmental, social, and governance (ESG) investments continues to evolve. An article in Wharton’s business journal highlights a new study that found ESG-related investments are only 6% of the assets under management of top institutions. This finding suggests a significant gap between reported ESG investments and actual investments.

The researchers argue that the reported share of green stocks in institutional portfolios is vastly overstated. This disparity raises questions about the accuracy of ESG reporting and the true impact of sustainable investments. As the demand for ESG investments grows, it becomes crucial for investors and institutions to ensure transparency and accuracy in reporting their ESG strategies and investments.

CFO Appointments: Bridging Experience and Expertise

In recent executive appointments, Michael Monahan and Jeff Wilson have taken on the role of CFO in prominent companies.

Michael Monahan was named CFO at The Beauty Health Company, home to flagship brand Hydrafacial, bringing with him nearly 15 years of experience as a public and private company CFO and over 25 years of accounting and financial management experience. Previously, Monahan served as CFO of Casper Sleep and Nutrisystem.

Jeff Wilson, on the other hand, became the CFO of Captain D’s, a fast-casual seafood restaurant. With 15 years of experience at Cracker Barrel, Wilson brings a wealth of knowledge to his new role. His vast experience in finance and operations analysis positions him well to contribute to the success of Captain D’s.

These appointments exemplify the importance of bridging financial expertise and industry-specific experience in CFO roles. As companies navigate the complexities and challenges of the business landscape, CFOs who can combine financial acumen with industry knowledge are essential to drive financial growth and sustainability.

Zuckerberg vs. Musk: The Wrestling Match That Never Was

The anticipated “cage match” between Meta CEO Mark Zuckerberg and Elon Musk seems to have hit a snag. Zuckerberg, in a dismissive tone, claimed that Musk has been delaying the event. The charity wrestling match, which involves escaping from a closed-in space, was proposed by Zuckerberg, with Dana White offering to make it a legitimate competition for charity.

Zuckerberg’s comments shed light on the lighthearted banter between the two tech industry titans. But the underlying sentiment expressed by Zuckerberg is that he is ready to move on and focus on competing seriously with those who prioritize the sport.

The clash between Zuckerberg and Musk exemplifies the unique dynamics and personalities within the tech industry. While playful interactions and challenges between individuals can generate excitement, it is critical to remember the underlying competitive spirit that drives innovation and progress in the industry.

In conclusion, the CFO’s rising compensation challenges traditional gender stereotypes and highlights the increasing importance of financial expertise in leadership roles. The decline in global private equity and venture capital deals reflects cautious investor sentiment. The ESG gap between reported and actual investments calls for greater transparency in sustainable finance. CFO appointments emphasize the importance of combining financial acumen with industry knowledge. And finally, the banter between Zuckerberg and Musk showcases the competitive dynamics within the tech industry. Despite the different angles and stories, all these developments provide valuable insights into the ever-evolving landscape of finance, business, and technology.