CFOs with operational expertise and predictive modeling capabilities can still command generous compensation, but executive recruiters say that compared to the signing costs they viewed as a "huge premium" in recent years, the cost of hiring such talent has now leveled off.

"They are still in high demand," said Josh Crist, co-managing partner at executive search firm Crist Kolder Associates. He noted that in 2023 and last year, companies paid premiums of up to 50% to attract top candidates. "But this year, I'm seeing more normalization and stabilization in traditional compensation package upgrades, in contrast to the oversized packages that were prevalent over the past two years."

According to data from executive search firm Cowen Partners, experienced CFOs in the financial services industry earned the highest average annual salary in 2025 at $1.5 million, followed closely by the technology sector; retail CFOs had the lowest average annual salary at $800,000.

Shawn Cole, president and co-founder of Cowen, pointed out that employer demands for CFO skills are continuously shifting from the more accounting-focused direction of the past. He said companies are willing to pay higher compensation for CFOs with comprehensive backgrounds, including operational expertise and financial planning and analysis capabilities.

"Being able to forecast—sometimes daily, if not daily, at least weekly or monthly—is a huge value proposition that deserves top-tier compensation," Cole said.

This is good news for high-end CFO candidates. However, according to CFO Dive, executive search firm Robert Half predicts that the average starting salary for mid-level experienced CFOs in new positions in the U.S. will only increase slightly by 0.6% next year, to $269,750.

Hiring becomes more cautious

Ash Athawale, senior group managing director at Robert Half, said CFO candidates facing job offers might see increases "in the single digits," citing U.S. tariffs and recent government shutdowns as factors causing companies to tighten their purse strings.

"Compensation will remain flat," he said. "Companies are becoming more cautious."

Athawale said CFOs who stay in their current roles could see salary increases of between 3% and 4% next year.

He said benefits such as health plan reimbursements, travel budgets, continuing education, and professional association memberships remain common incentives, but in high-end positions, signing packages that previously might have included large items like company-provided housing are giving way to higher cash bonuses.

Cash incentives favored

Cole of Cowen Partners said the growing popularity of cash incentives is largely due to stock market volatility.

"I think people's expectations for cash are much higher than in the past," Cole said, but he also noted that in the current environment, cash is costly for companies. "Many people come from companies where stock or equity value is not what it used to be, so they want certainty."

Crist said he sees more companies paying CFO candidates in cash to buy out the equity they might be giving up. "Frankly, that's the only item that will continue to grow significantly," he said.

Athawale observed that larger bonus incentives tied to business performance goals can offset more modest salary increases. He believes the specific range varies greatly depending on the industry and corporate structure.

The unlimited remote work privileges born out of the pandemic may be fading. Executive recruiters say they see companies increasingly wanting to align work arrangements with the overall trend of employees returning to the office—at least part of the time. Crist finds that benefits helping employees work in the office include travel allowances and sometimes provided apartments.

Hybrid work written into contracts

Athawale said specific hybrid work requirements are now often written into CFO contracts. But Cole believes contractual requirements about work location could kill top CFO hiring deals.

"They show up when they need to show up; that's part of the job," Cole said. He observed that family-owned businesses are an exception, as they typically have more conservative cultures and may require more visible office attendance.

Among the ongoing pressures boards must contend with, the pool of qualified CFO candidates is shrinking as the CFO population continues to age. Data tracked by Crist Kolder through July shows the average age of CFOs at Fortune 500 and S&P 500 companies is 52.6; CEOs are older, averaging 57.8.

Industries facing profit pressure have the highest turnover rates, and companies often need to pay higher compensation to hire replacements who can help drive business growth. According to Crist Kolder data, CFOs in the industrial sector, facing challenges such as high-cost goods and unpredictable tariffs, have an average tenure of 4.1 years; followed closely by the consumer sector (4.5 years) and the energy sector (4.3 years).

"We're looking for people who can dive deep into the business and understand which levers the company needs to pull to drive change and transformation," Crist said.

Cole said private equity-backed portfolio companies that have reached maturity are another area paying a premium for talent that understands predictive analytics and the importance of AI and other emerging technologies.

Recruiters expect compensation trends to remain similar into 2026, with companies waiting for signs of economic stability before adjusting strategies.

Cole said: "I think we're looking at 2026, around this time next year, when we'll see indicators of whether we're re-entering a very strong cycle."