“Cash is king”—even sometimes in compensation. In a survey last December conducted by executive search firm Heidrick & Struggles, CFOs at PE-backed companies in the US reported average total cash compensation of $604,000, up 5% from 2024. While the average cash bonus declined 2%, the average base salary rose 7%. The cash compensation boost, according to H&S, “reflects longer expected hold periods and time to exit, which heightens candidates’ focus on negotiating base cash compensation up front. As CFOs carefully consider both immediate and long-term value in these extended investment horizons, they’ve realized that a higher base mitigates the risk of delayed equity realization and shapes the overall package.” The H&S survey collected compensation data from 353 senior financial officers, most of whom were CFOs, within the US and Europe. A plurality (40%) of the respondents said their financial investors had exit timelines three or four years from the time of the survey, 29% said one to two years, and 16% gave them five or more years. President and founding partner of Cowen Partners Executive Search Shawn Cole told CFO Brew that the experienced PE-backed CFOs he’s seen in recent years are coming from “extended hold times”—when the PE firm took longer than what’s been traditional to exit an investment. Keep reading.—DL |