Highest Paid CFOs in America
In many companies the CFO is rarely seen. Many people don’t realize that CFOs are responsible for the financial success of great companies. The CFO assists the CEO in making accurate financial forecasts, doing cost-benefit analysis for various plans, and obtaining funding for the company’s activities.
The CFO is required by law to provide accurate company information under the Generally Accepted Accounting Practices (GAAP) as outlined by the Securities Exchanges Commission (SEC). The CFO is mandated to prevent loss of fund by the company through fraud by observing regulations such as the Sarbanes-Oxley act on financial disclosure.
The roles of a CFO are very demanding and attract good remuneration in many companies. According to Investopedia, starting salaries for CFOs in 2014 were $ 177,928, while median salaries were $315,947 and the highest salaries going up to $ 474,515 per year. The highest paid CFO in America in 2014 was Twitter CFO Anthony Noto earning $72.8 million per year.
The role of a finance head in a company encompasses a wide range of roles and responsibilities;
- Head in coming up with the company’s financial plan.
- Formulate, implement and monitor performance on strategic business plans
- Come up with tax strategies
- Control capital request and budgeting processes
- Formulate performance assessment tools
- Participate in executive management decision making
- Keep close liaison with other senior management team members.
- Manage departments touching on finance, i.e. accounting, human resources, legal, tax, and treasury departments
- Supervise financial operations of subsidiary and foreign companies
- Setup and supervise transaction processing systems
- Implement operational financial and accounting best practices
- Manage and employee benefit plans with the best cost-benefit analysis packages in mind.
- Control release of financial information
- Oversee filings with the Securities and Exchange Commission after reviewing and approving all Form 8-K, 10-K, and 10-Q
- Release financial results to the company’s board of directors
- Manage key elements of the company’s financial risk profile
- Monitor legal issues that pose a financial risk to the company
- Negotiate and setup adequate insurance cover
- Ensure compliance with industry and legal requirements
- Ensure compliance in record keeping outlined by internal or external auditors, and government agencies
- Raise all risk issues to the audit committee of the board of directors
- Keep contact with external auditors, respond to audit queries and implement their findings and recommendations
- Ensure healthy cash balances and make cash forecasts
- Set up debt and equity financing arrangements
- Invest company funds
- Invest staff pension funds
Here are the Highest Paid CFOs in America:
The Goldman Sachs Group Inc.
Atairos Management LP
Antero Midstream Partners
Crown Baus Capital
Altisource Asset Management
The American Express Company
Merck & Co. Inc.
Community Health Systems