Dive Brief:

• CFO compensation at large U.S. public companies rose by a median 8% last year as organizations increased long-term incentive awards amid heightened competition for experienced finance leaders, according to Compensation Advisory Partners’ 2026 update on CFO pay trends.
• Long-term incentive awards rose 12% for CFOs compared with 9% for CEOs at the median, nearly double the prior year’s growth, according to the research, which examined executive pay at 140 companies listed on the New York Stock Exchange or NASDAQ with median annual revenue of $15.6 billion.
• “Over the years, the role of the CFO evolved and has become one of the key strategic roles at companies,” Roman Beleuta, a partner at the New York executive compensation consulting firm, said in an email. “Additionally, the CFO turnover has been at higher than historical norms, which is putting pressure on available CFO talent in the market. Talent shortages will lead to higher compensation increases over time.”

Dive Insight:

The research comes as CFOs take on an expanding set of responsibilities spanning areas such as capital allocation, mergers and acquisitions, and technology oversight, even as turnover and talent shortages continue to pressure the finance leadership pipeline.

CFO turnover is cooling from recent highs but remains elevated by historical standards, according to a recent report from Russell Reynolds Associates. The firm said 4.9% of a sample of large public companies appointed a new CFO in the first quarter of 2026, down from a record 5.2% a year earlier and marking the first year-over-year decline in CFO appointments since 2022. Activity, however, remains above the seven-year Q1 average of 4.4%.

The firm also found that companies are increasingly prioritizing experienced finance leadership. Globally, 42% of newly appointed CFOs in the quarter had prior public company CFO experience, up from a seven-year average of 35% and the highest level on record for a first quarter.

“In a business landscape shaped by volatility, transformation demands and heightened expectations, prior CFO experience is proving a powerful differentiator for some organizations, with boards and CEOs looking for leaders who can step in with credibility, manage uncertainty and take on a larger share of investor-facing responsibilities from day one,” Russell Reynolds said.

In the last five years, CEO and CFO pay has shifted more towards long-term incentives, according to the CAP analysis. Long-term incentives comprise 63% of total compensation for CFOs and 73% for CEOs.

Most companies structure long-term incentives using multiple equity vehicles, with 66% combining two different types of awards, according to the CAP analysis. Another 23% use a broader mix that includes stock options, time-based stock awards and performance-based plans, while just 11% rely on a single vehicle.

“Looking forward to 2026, we expect increases to CFO pay to take into consideration an increasingly competitive environment and performance,” CAP said. “We also expect the continued importance of the CFO as a strategic partner, leveraging financial acumen for key operational projects, and embracing technology, including data analytics and artificial intelligence, to meet the company’s goals.”