Finance executives are among the highest paid members of the C-suite and are often right behind operational executives. This competitive compensation position has been sustained by steady increases in CFO cash compensation since at least 2019, even through the economically volatile COVID-19 pandemic.
But the just-released numbers suggest a deeper insight: Changes in CFO bonuses are the basis of this positive momentum. According to chief executiveAccording to the new U.S. Private Companies 2025-26 CEO and Senior Executive Compensation Report, the average annual change in CFO base pay and bonus from 2019 to 2026 is 3.6% and 6.0%, respectively.
In layman's terms, CFO bonuses have increased at nearly twice the rate of base pay in recent years. Therefore, the way finance executives receive compensation is also changing. In response to the expansion of performance-based and incentive-based compensation frameworks, annual changes in CFO salaries have begun to rely more on variable income fluctuations than on predetermined salaries.
“As target-based incentive pay targets become increasingly difficult to set, let alone achieve, many executives are opting for more stable increases in base pay. CFOs have a special role within the C-suite. “CFOs' preferences may differ based on their financial insight into company performance, which plays a large role in setting these goals,” said Isabella Murgelas, principal research analyst and author of the compensation report.
Looking at how CFO bonuses alone have trended over the years shows how integral they are to overall compensation trends. From 2019 to 2026, base salaries increased continuously. Bonuses, on the other hand, tend to be very volatile.
Bonuses decreased by 12.5% from 2023 to 2024, following changes in profitability targets that are becoming increasingly difficult for companies to meet. Examining total cash compensation over the same period reveals an overall lack of growth. only Therefore, a small drop in bonus compensation can cause large changes in a finance executive's total compensation.
The annual analysis also suggests a fundamental divergence in CEO and CFO compensation. It was revealed last month that CEO bonus pay has been in a long-term slump since 2019, with little sign of recovery in the near future. Finance executives, on the other hand, are not exposed to this stagnation. Although their bonuses decreased slightly after COVID-19, they have generally been on an upward trajectory since then, and will continue to do so into 2026.
“In privately held companies, the CEO is often part of the ownership structure. Our research shows that the CEO is always the last position in the C-suite to receive a raise, often because they seek to maintain the compensation of executives, including the CFO,” says Murgelas.
the power of profitability
One of the factors that most influences CFO bonus pay is the company's profitability. There is a 200% difference in bonus amounts between unprofitable companies and companies with EBITDA margins above 30%.
Base pay is less responsive: For example, among organizations that reported the lowest EBITDA values (less than 10%) in 2024, the numbers remained relatively the same, at just over $200,000.
For private companies, this year's data supports important insights. While base salary is an important component of a finance executive's pay, bonus changes are essential to increasing overall compensation from year to year. Ownership structure, industry, and size will also continue to lead to significant differences in CEO and senior executive compensation through 2026. The 2025-26 U.S. Private Company CEO and Senior Executive Compensation Report reveals these trends across roles and industries, with detailed breakdowns and forward-looking insights to guide your 2026 plans.
Order your copy and make informed, future-proof compensation decisions at chiefexecutive.net/compensationreport/order/.
