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10/20/2017 1:01:18 AM
9/22/2017 12:11:25 AM
Posted: 9/13/2005 6:37:51 PM EDT
[Last Edit: 9/13/2005 6:40:13 PM EDT by PeteCO]
Have been asked to provide my salary requirements for a CFO position I am looking at taking in the midwest. It's a closely held company that has about $15M in revenue, the position has two direct reports, and in addition to the normal CFO stuff is reponsible for benefits admin, HR, and facilities (3 locations).

No equity compensation, but up to a $25k annual bonus. Any ideas?

Salary.com lists a median of $285,000, but I think that's a bit high for such a small company.
Link Posted: 9/13/2005 6:42:01 PM EDT

Originally Posted By PeteCO:
Salary.com lists a median of $285,000, but I think that's a bit high for such a small company.



Dude, aim high. If they start laughing then you know you are way off. If they say 'OK' then you'll kick yourself for not asking for more.
Link Posted: 9/13/2005 6:44:10 PM EDT
Midwest. Bet it's half of that or less for a 15M company.
Link Posted: 9/13/2005 6:45:25 PM EDT

Originally Posted By C-4:

Originally Posted By PeteCO:
Salary.com lists a median of $285,000, but I think that's a bit high for such a small company.



Dude, aim high. If they start laughing then you know you are way off. If they say 'OK' then you'll kick yourself for not asking for more.



That's the problem - we are talking about quite a range here. In this area, $90k - $130k would be what I would consider normal for a company that small. Salary.com's figures seem skewed pretty hard.
Link Posted: 9/13/2005 6:45:59 PM EDT
[Last Edit: 9/13/2005 6:46:18 PM EDT by PeteCO]

Originally Posted By Ramjet:
Midwest. Bet it's half of that or less for a 15M company.



Minneapolis, if that helps.
Link Posted: 9/13/2005 6:46:12 PM EDT
[Last Edit: 9/13/2005 6:48:09 PM EDT by motown_steve]

Originally Posted By PeteCO:
Have been asked to provide my salary requirements for a CFO position



Take what you make now, add 10% and you have your number.


ETA - If they can't pay that, then keep looking.
Link Posted: 9/13/2005 6:46:53 PM EDT
I'm betting $125K to $150K will be on the high end.
Link Posted: 9/13/2005 6:49:56 PM EDT
[Last Edit: 9/13/2005 6:52:07 PM EDT by GUNGUY1911]
Where in the Midwest? My company is approximately a $60M a year company, but I know for a fact that our CFO makes nowhere near that. We are a family owned company in a small town, an hour either direction from anything resembling a city, so that adversely effects all of the salaried positions' pay. Going to websites that have median salaries is pretty depressing for us, as we are always at or below the low end of the salary median charts! So be careful what you ask for, and take into account the area. Good Luck!


ETA: Minneapolis, definitely a lot more chance for salary negotiation there than small town USA!
Link Posted: 9/13/2005 6:50:36 PM EDT
Shit.

I wish it was me having to make that decision.

Don't forget that team membership when you land the job.
Link Posted: 9/13/2005 6:51:37 PM EDT
[Last Edit: 9/13/2005 6:53:14 PM EDT by Ramjet]
I see the salary ranges printed by Ad Week and Advertising Age, and I have yet to know anyone who makes the salary they report.

You're correct, I bet it is in the 90K to 140K range. It would depend on the industry and the area. If it's plastics, those guys are dieing off at a rapid rate as their manufacturing ships to China. At least that's the picture in fudge up Ohio. If it's healthcare, that seems stable. They're still burning FED money.


edit...oops there/their...doh!
Link Posted: 9/13/2005 6:56:20 PM EDT
[Last Edit: 9/13/2005 6:58:02 PM EDT by DriftPunch]

Originally Posted By Ramjet:
I see the salary ranges printed by Ad Week and Advertising Age, and I have yet to know anyone who makes the salary they report.

edit...oops there/their...doh!



+1 The only ones that will make that type of dough are executive managers of entire departments of public companies (street reporting/financial forecasting is a skill unto itself).

A 15 million private company CFO will be doing most of the work alone save an AR clerk doubling as the receptionist. ETA: If it's a service business

Link Posted: 9/13/2005 7:00:28 PM EDT

Originally Posted By PeteCO:
Have been asked to provide my salary requirements for a CFO position I am looking at taking in the midwest. It's a closely held company that has about $15M in revenue, the position has two direct reports, and in addition to the normal CFO stuff is reponsible for benefits admin, HR, and facilities (3 locations).

No equity compensation, but up to a $25k annual bonus. Any ideas?

Salary.com lists a median of $285,000, but I think that's a bit high for such a small company.



If this position was located through a recruiter or you know a recruiter, I would ask them to see what they can find out. I would guess the position pays in the range of $110k-$150k. You can also do some research through Monster.com and I think they have a salary information page that can help you out.
Link Posted: 9/13/2005 7:02:15 PM EDT

Originally Posted By The_Friendly_Sponge:
I'm betting $125K to $150K will be on the high end.



This would be my guess


Aviator
Link Posted: 9/13/2005 7:08:25 PM EDT
[Last Edit: 9/13/2005 7:09:43 PM EDT by PeteCO]

Originally Posted By oscar_corgi:
You can also do some research through Monster.com and I think they have a salary information page that can help you out.



Thanks, I hadn't thought of Monster as a source


Originally posted by Drift Punch:
A 15 million private company CFO will be doing most of the work alone save an AR clerk doubling as the receptionist. ETA: If it's a service business



It's an advertising and direct mail company, with 3 facilities in Minnesota in addition to the main office. Direct Reports would be an HR/benefits/AP person, and one GL accountant.

========================

Compared to most companies of that size I've seen, they are very conscious of financial analysis, capital budgeting, and costing. They have been quite thorough in their selection, giving me a written test which included the creation of a financial analysis from sample financials, and the use of IRR, NPV, and simulation in determining the answer to some fairly complex capital budgeting questions.

Oh, and to add one additional point - the owner/CEO is old and will be retiring in three years, and the CFO will be moving into the CEO slot. This adds some value to the position for me as well.
Link Posted: 9/13/2005 7:10:26 PM EDT
[Last Edit: 9/13/2005 7:17:35 PM EDT by DriftPunch]

Originally Posted By PeteCO:
It's an advertising and direct mail company, with 3 facilities in Minnesota in addition to the main office. Direct Reports would be an HR/benefits/AP person, and one accountant.



Who is it?

You'll be paying lots of big invoices to PGI...

If you can forecast jack, your prospective companies' clients must be on retainer with passthrough...
Link Posted: 9/13/2005 7:10:52 PM EDT
I work for a 15M company and our CFO makes a little over 100K.
Link Posted: 9/13/2005 7:11:02 PM EDT
[Last Edit: 9/13/2005 7:12:10 PM EDT by Evil_Ed]
Depends...Minneapolis is a fairly well-to-do area. Think slighly cheaper than NYC, basically. A 95k/yr job in NYC pays 85-90k here.

Figuring in an up to 25k bonus...what kind of bennies?....yah, start at 150. (Figure average bonus, on an average not bad year, should be at least %12 in my line of work, dunno about that one...)

$15m in revenue, how much is profit, etc should also factor in...how large is the company? 300 people? More?

A lot depends on the industry (financial? industrial? etc) as well...



ETA: Saw the company type....150 wouldn't be a bad ask. 125 gives you wiggle room, IMO...
Link Posted: 9/13/2005 7:11:20 PM EDT
... $385K
Link Posted: 9/13/2005 7:11:43 PM EDT

A 15 million private company CFO will be doing most of the work alone save an AR clerk doubling as the receptionist.

Agreed. I'm GM/CFO/CTO of a company that does $4.3M in sales a year, and I make $8/hour. Without overtime, that comes to $16.6k per year. I wish I had an AR clerk!

PeteCO, speaking from experience from helping other companies with bookkeeping, the total revenue doesn't usually have anything at all to do with the upper management's salaries. The profits are what create the high pay for the guys in charge. For my company, not including my pay or the owner's pay, there's about $40k left over at the end of each year. That's why I make so little. If you're dealing with a company that makes over $2M (to pull a number out of the air) on the $15M, then you can expect a large salary. If the profits are small, then they obviously can't afford the luxury of an expensive employee. Ask yourself how much money you think the owner is making then work down from that.z
Link Posted: 9/13/2005 7:17:59 PM EDT
[Last Edit: 9/13/2005 7:26:28 PM EDT by PeteCO]

Originally Posted By Evil_Ed:
Depends...Minneapolis is a fairly well-to-do area. Think slighly cheaper than NYC, basically. A 95k/yr job in NYC pays 85-90k here.

Figuring in an up to 25k bonus...what kind of bennies?....yah, start at 150. (Figure average bonus, on an average not bad year, should be at least %12 in my line of work, dunno about that one...)

$15m in revenue, how much is profit, etc should also factor in...how large is the company? 300 people? More?

A lot depends on the industry (financial? industrial? etc) as well...



ETA: Saw the company type....150 wouldn't be a bad ask. 125 gives you wiggle room, IMO...



300 people, mostly call center types. Unknown what their profit is, but I'd expect $2m or so. "Standard" bennies - health and prescription plan, rudimentary dental, employee pays maybe $70 a week for me and wifey.
Link Posted: 9/13/2005 7:19:58 PM EDT
salary.com said the median salary for a flight instructor in my area was 85,000!
LOL
I made 13000 in a year as a flight instuctor one year......which was a good year!
Link Posted: 9/13/2005 7:22:02 PM EDT

Originally Posted By PeteCO:
500 people, mostly call center types. Unknown what their profit is, but I'd expect $2m or so. "Standard" bennies - health and prescription plan, rudimentary dental, employee pays maybe $70 a week for me and wifey.



How do you get 500 people out of a 15mm operation. Kathy Lee Gifford exploiting children in Latin America again?
Link Posted: 9/13/2005 7:22:28 PM EDT
Sounds high, only because I handle a $12.5m business segment and i don't get paid anywhere near that amount. More direct reports also.
Link Posted: 9/13/2005 7:25:40 PM EDT

Originally Posted By DriftPunch:

Originally Posted By PeteCO:
500 people, mostly call center types. Unknown what their profit is, but I'd expect $2m or so. "Standard" bennies - health and prescription plan, rudimentary dental, employee pays maybe $70 a week for me and wifey.



How do you get 500 people out of a 15mm operation. Kathy Lee Gifford exploiting children in Latin America again?



Doh!! Typo. 300 people. And yes, the revenue does seem low for even 300 people, but who knows - my last position everyone was a software engineer making $60-80k.
Link Posted: 9/13/2005 7:35:33 PM EDT
There's still something wrong... In the pure Agency world, it seems like $15,000,000 of revenue would be a 30-50 person operation.
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