Qinthara Fasya | 16 November 2021
With Covid-19 being a major reason for decline in salaries across various industries and roles, CFOs did not fall short on this decline. As we move into 2022 in a short matter of 2 months, it is important for CFOs and finance professionals to understand the current landscape that they are in, in order to remain relevant and to stay ahead of the game.
Salary for Chief Financial Officers varies greatly depending on experience, abilities, gender, and region. This also depends on various criteria such as whether your company is little or large, and where it is located. Adjust your compensation rate if you have to work with someone outside of your sector or current development phase. In other words, if the CFO will have to learn on the job, he or she will not be as beneficial as someone who has substantial expertise in your sector and stage of growth. In this article, we’ll be focussing on the Singapore market – exploring different salary ranges from various websites.
According to Salary Explorer, the average monthly salary for a Chief Financial Officer in Singapore is roughly 17,000 SGD. Salaries vary from 8,170 Singapore Dollars (lowest) to 26,700 Singapore Dollars (highest). This is the monthly average pay, which includes housing, transportation, and other benefits. Salary for Chief Financial Officers varies greatly depending on experience, abilities, gender, and region.
The median, the maximum, the minimum and the range
- Salary Range
In Singapore, chief financial officer salaries vary from 8,170 SGD per month (lowest income) to 26,700 SGD per month (maximum salary).
- Median Salary
The median monthly pay for Chief Financial Officer(s) is 17,700 SGD, which indicates that half of those employed as Chief Financial Officer(s) make less than 17,700 SGD and the other half earn more. The middle wage value is represented by the median. In general, you want to be on the right side of the graph, in the group that earns more than the median wage.
- Percentiles
Two numbers are closely connected to the median: the 25th and 75th percentiles. According to the pay distribution chart, 25% of Chief Financial Officers make less than 11,600 SGD, while 75% earn more than 11,600 SGD. According to the diagram, 75% of Chief Financial Officers (CFOs) make less than 23,100 SGD, while 25% earn more than 23,100 SGD.
The most essential criterion in deciding a wage is the amount of experience. Naturally, the more years of experience you have, the more money you will earn. A Chief Financial Officer with less than two years’ experience earns around 9,560 Singapore dollars per month. Someone with two to five years of experience may expect to earn 13,500 SGD each month, which is 42 percent higher than someone with less than two years of experience.
Moving forward, someone with five to 10 years of experience earns 17,800 SGD each month, which is 31% more than someone with two to five years of experience.
Similarly, according to Kerry Consulting, a Singapore search and selection firm, Finance Directors and CFOs of medium and large firms earn a range of S$220k to S$500k annually whilst these roles from a small firm in Singapore typically earns S$180k to S$250k annually. These estimated salaries are for CFOs with more than 15 years of financial experience.
As stated by Indeed, a popular worldwide employment website for job listings, an average base salary for a CFO in Singapore is S$12,765 per month. This included companies such as LG Electronics, Capita Pte Ltd and Deutsche Bank. Indeed also compared the highest paying locations in Singapore for CFOs which states:
- Suntec City – S$14,249
- Tanjong Pagar – S$14,001
- Jurong Island – S$13,359
- Outram – S$12,657
- Raffles – S$9,014
- Orchard – S$16,969
Professions with a similar pay range also include Vice President of Finance, Director of Finance, Corporate Controller, Financial Controller and Chief Investment Officer.
Last but not least, Pay Scale states that based on 7 salaries, an early career Chief Financial Officer (CFO) with 1-4 years of experience gets an average total salary of S$191,096 (including tips, bonus, and overtime pay). Based on 15 salaries, a mid-career Chief Financial Officer (CFO) with 5-9 years of experience gets an average total remuneration of S$180,000. According to 65 salaries, an experienced Chief Financial Officer (CFO) with 10-19 years of experience makes an average total remuneration of S$204,753. Employees with a long career (20 years or more) receive an average total salary of S$260,643.
In essence, salary is important to people for a variety of reasons, even if it isn’t necessarily the major (or even secondary or tertiary) reason for accepting a job offer or staying in a position. It is important for CFOs to understand the current market in order to stay relevant and to be remunerated appropriately. These numbers may change as the economy evolves, but it is not quite likely for this industry – as we’ve seen in the past decade. We’ve analysed some credible sources above for reference, so that you won’t have to.
