SAN DIEGO--(BUSINESS WIRE)--Annual compensation for corporate board members increased in 2011 to a range of $106,000 to $135,000 in major California markets, while total pay for Chief Financial Officers (CFO) also rose to a range of $562,000 to $964,000, according to a survey of publicly traded firms analyzed by the Compensation Consulting Practice of Barney & Barney.
“Board of Director and Chief Financial Officer pay is on the rise statewide, with regional and industry differences considerable in some cases,” said Matt Ward, National Practice Leader of Barney & Barney’s Compensation Consulting Practice. “The analysis produced a number of surprises, such as the significantly higher total compensation for life sciences CFOs than technology CFOs in the San Francisco-Bay Area.”
The annual State-of-Pay Reports by Barney & Barney focused on firms in California’s largest coastal markets. In San Diego, the report focused on all publicly traded companies of any size. In Orange County/Los Angeles, the reports focused on all mid-sized, publicly traded technology companies. In the San Francisco-Bay Area, the reports covered mid-sized technology and life sciences firms.
Some Board Pay Jumps by Double-Digits
Total annual compensation, which includes cash and equity, ranged from a median of $106,000 to $135,000. The largest median increase – a 15% gain – occurred for Board of Directors of Orange County/Los Angeles technology companies. Compensation was balanced between cash and equity. Only Bay Area technology companies, at median, paid less than 50% of compensation in the form of cash.
|
Board of Directors by Geography |
Total Comp. |
Year-Over-Year Change |
||
| San Diego | $118,300 | 3% | ||
| Orange County/LA (technology only) | $106,400 | 15% | ||
| SF-Bay Area (technology only) | $135,300 | 10% | ||
| SF-Bay Area (life sciences only) | $127,200 | (4%) |
Other key findings:
- Additional compensation for Board Chairs ranged regionally at the median from $16,000 to $30,000. Lead Directors received additional compensation ranging regionally from a median of $9,000 to $15,000. Bay Area life sciences companies paid the highest additional compensation for both positions.
- Audit Committee chairs received the most additional compensation, ranging regionally from a median of $15,000 to $22,000, followed by the chair of the Compensation Committee, which earned a median of $10,000 to $15,000 of additional compensation. The Nominating Committee Chair was paid the least additional compensation, ranging regionally from $6,000 to $10,000.
CFO Compensation Climbs Solidly
Total direct compensation, which includes cash and equity, was highest for Bay Area life sciences companies at $965,000 and lowest at $563,000 for technology companies in Orange County/Los Angeles. San Diego technology companies had the highest increase in total direct compensation, up over 8% from the prior year. CFO pay at Bay Area technology companies was flat.
|
Chief Financial Officers by Geography |
Total Comp. |
Year-Over-Year Change |
||
| San Diego | $840,800 | 8.1% | ||
| Orange County/LA (technology only) | $562,800 | 4.9% | ||
| SF Bay Area (technology only) | $805,500 | 0.0% | ||
| SF Bay Area (life sciences only) | $964,700 | 7.2% |
Other key findings:
- Median base salaries increased slightly, ranging regionally from a median of $289,000 to $360,000. Median salaries rose from 0.1% to 2.9% regionally. Bay Area life sciences companies had the highest median salaries overall. Median merit increases ranged from 4.0% to 6.3%. Bay Area life sciences companies again had the highest median merit increase at 6.3%. Slightly over half of the companies provided merit increases to CFOs.
- Bonuses for CFOs ranged regionally from a median of $73,000 to $121,000. Median bonuses were down at Orange County/Los Angeles and Bay Area technology companies. Bay Area life sciences companies had the highest median bonuses. The median target bonus opportunity was 40% to 50% of base salary, while the actual bonuses as a percentage of target varied significantly across regions. Bay Area life sciences companies had the highest payout as a percentage of target at 88%. Bay Area technology companies had the lowest at 47%. All regions paid below target bonuses at the median.
- Despite significant trends away from stock options nationally, still 25% to 40% of the California companies delivered equity compensation in the form of options only. A significant number of firms granted a mix of stock options and full value shares. Bay Area life sciences companies are the highest users of stock-option only grants at 40%.
To download the reports, visit http://www.barneyandbarney.com/reports/barneyandbarney-form.html or contact the compensation consulting practice at 858.875.6589.
About Barney & Barney
Founded over 100 years ago, Barney & Barney LLC is headquartered in San Diego, with offices in San Francisco, Oakland, and Orange County. For more information, visit www.barneyandbarney.com, or call 800.321.4696. For information about the Barney & Barney Foundation, visit http://www.barneyandbarneyfoundation.org.