This report analyses compensation data from 110 CFOs across the US Commercial Services industry, examining how base salary, bonus and equity change as businesses scale. The data is divided into four revenue categories: under $50M, 50M - 150M, 150M - 500M and $500M+.

Under $50M Revenue

CFOs within businesses under $50M receive a median base salary of $205,000, with salaries ranging from $100,000 to $350,000. Approximately 85% receive a bonus of 50% or less.

Equity is less prevalent at this level, with 54% receiving equity or an equity equivalent. However, where ownership percentages were disclosed, packages included approximately 1%, 1.25%, 3%, 4% and as much as 8%. This highlights an important distinction: equity is less consistently offered by smaller businesses, but individual CFOs can still receive meaningful ownership stakes.

50M - 150M Revenue

At businesses generating between $50M and $150M, median CFO base salary increases to $270,000, with compensation ranging from $100,000 to $400,000. Approximately 85% receive a bonus of 50% or less.

Equity participation increases significantly, with approximately 80% receiving equity or an equivalent incentive. Where percentages were disclosed, CFO ownership generally ranged from approximately 0.5% to 2.5%, with several packages around the 1%-2% level. Some executives instead reported equity in terms of expected value, including packages worth approximately 200K - 400K, 1.5M - 2M, $2.5M and 5M - 7M.

150M - 500M Revenue

CFOs within 150M - 500M businesses receive a median base salary of $300,000, with salaries ranging from $220,000 to $415,000. Approximately 89% receive a bonus of 50% or less.

Equity is close to standard at this level, with approximately 90% receiving equity or an equity equivalent. Disclosed ownership percentages range from approximately 0.5% to 5%, with several packages concentrated around 1%-2.5%. The structures also become more varied, including direct equity, options, LTIPs, performance units and transaction or exit-linked incentives. Reported potential values include approximately $700K, $2M, 2M - 3M and 3M - 5M.

$500M+ Revenue

CFOs at businesses generating more than $500M receive the highest median base compensation in the dataset at $350,000, with salaries ranging from $200,000 to $450,000. Only 36% of CFOs with quantifiable bonus data receive a bonus of 50% or less, indicating that bonus opportunities above 50% become considerably more prevalent at this scale.

Equity or an equivalent long-term incentive is received by approximately 91% of CFOs where equity status was known. Disclosed packages include examples of approximately 1% and 3% ownership, alongside reported equity values of approximately $500K, 1M - 2M, $2M and $2.5M at exit. LTIPs and multi-year vesting arrangements also feature within this group.

Key Takeaways

CFO compensation increases as Commercial Services businesses scale. Median base salary rises from $205,000 at companies below $50M revenue, to $270,000 at 50M - 150M, $300,000 at 150M - 500M, and $350,000 at $500M+.

The more significant change is in equity participation. Equity or equivalent long-term incentives increase from 54% below $50M revenue, to 80% at 50M - 150M, 90% at 150M - 500M, and 91% at $500M+. Where disclosed, ownership ranged from approximately 0.5% to 8%, while potential equity values included packages in the 2M - 5M range and, in some cases, 5M - 7M.

This demonstrates why CFO compensation should be assessed on total potential value rather than base salary alone. In a PE-backed environment, a CFO may consider a package around $300K base with 2M - 5M of credible potential equity value differently from one offering $400K base but limited long-term equity upside. The additional $100K of annual cash compensation may be outweighed by the potential value created at exit, although that equity remains inherently less certain and depends on factors including performance, vesting, enterprise value and the eventual exit.

The data does not prove that CFOs universally prefer equity over cash. What it does show is that meaningful equity becomes increasingly prevalent as businesses scale, making the quality and potential value of the equity opportunity an important part of benchmarking CFO compensation.

Bottom line: Employers should benchmark base salary + bonus + equity opportunity together, rather than competing on base salary alone.