CEOs earn 2.8 times more than CFOs, according to a new report. By Investing.com

© Reuters. CEOs earn 2.8 times more than CFOs, according to a new report.

CEOs earn 2.8 times more than CFOs, but the gap is narrowing, according to a new report released today.

A new CFO-centric report titled “CFO and the C-Suite 2023” published by Datarails found that CFO compensation lags that of CEOs, CTOs and COOs.

Datarails, a financial planning and analysis (FP&A) platform, analyzed the SEC filings of the largest public companies in the United States. The analysis found that CFOs saw their average compensation increase by 1% over the same period, while CEOs saw their compensation decrease by 6%.

Despite this, finance directors still face difficult job security, having to hold their positions within the C-suite for only 3.15 years on average over a five-year period. In particular, four CFOs were replaced in 16 listed companies over the past five years.

CFOs earn an average annual salary of $3.48 million, compared to $3.8 million for COOs, $3.82 million for CTOs and $9.74 million for CEOs.

The highest-paid CFO in the U.S. in 2022 was Joe Berchtold of entertainment group LiveNation, who earned $52.4 million. This has been a lucrative year for LiveNation executives. CEO Michael Rapino became the highest-earning CEO in the U.S. with $139 million.

The second-highest paid CFO in 2022 was Michael J. Cavanagh of Comcast (NASDAQ:), owned by NBC Universal, with $41 million in compensation.

The report also found that the stock price immediately fell -1% the day after the CFO’s resignation was announced. Over the next 30 days, these companies face a further -2% decline.

However, after 180 days, the stock price recovered to its previous level. This contrasts with the larger stock market losses that companies experience when a CEO leaves.

In these cases, there was an average decrease of 1% after 1 day, a 4% decrease after 30 days, and an even greater decrease of -11% after 180 days.