CFOs’ 2025 compensation boost was nearly in line with CEOs’

CFOs’ total compensation increased at nearly the same rate as their CEOs’ did, according to a Compensation Advisory Partners (CAP) report that examined the 2025 pay packages of 140 companies with at least $5 billion in revenue for fiscal 2025.

Total compensation rose a median 8% for CFOs and 9% for CFOs, marking “the first time in several years” that the increases were “very close,” according to the report. The pay boosts were “driven by strong performance and increased focus on retention of key talent.”

Specifically, CFO salaries increased a median 3.7% from 2024, compared to a 2.1% increase for CEOs. CFOs’ actual bonuses increased 7.1% (6.5% for CEOs).

The biggest gains in compensation were in long-term incentive (LTI) awards, which CAP noted “increased significantly” for the year (12% for CFOs and 9% for CEOs). These gains were nearly double the YoY increases from 2024 of 7% and 5%, respectively. LTIs made up 63% of CFO pay in 2025, largely consistent with the previous four years.

CFO compensation remained at roughly a third what CEOs made last year.

“CEO and CFO pay does tend to move with performance,” Kelly Malafis, founding partner at CAP, told Fortune’s CFO Daily. “But our hypothesis is that we’re operating in an increasingly competitive environment where companies really want stability in leadership and that starts with the CEO.”

Elsewhere. Other recent research suggests that CFO compensation may look different based on the organization’s ownership structure. As CFO Brew reported in April, a Heidrick & Struggles survey found that average total cash compensation for CFOs at private equity-backed firms increased 5% from 2024. The average cash bonus was down 2%, but the average base salary increased 7%.

The boost in cash compensation, according to H&S, was a consequence of longer hold periods. CFOs have “realized that a higher base mitigates the risk of delayed equity realization and shapes the overall package.”

The CAP analysis included only companies that had no change in CEO and CFO incumbents in the past three years.