CFO compensation influenced by organizational size, ownership

Results of a 1995 compensation survey of healthcare organization chief financial officers (CFOs) indicate that the larger the organization for which the CFO works (as measured by operating revenues), the larger the CFO's compensation package. The survey findings show that CFOs who work for organizations with annual operating revenues of more than $199 million earn an average of $189,300 annually, while CFOs at organizations with operating revenues less than $50 million earn $76,400. Other factors influencing CFOs compensation, according to survey results, include education level, gender, and job responsibilities; geographic location of the employing organization; organizational type (multi-unit system, stand-alone hospital, etc.); and organizational ownership (physician-owned, not-for-profit, etc.) The survey was co-sponsored by the Healthcare Financial Management Association (HFMA) and Aetna Life Insurance and Annuity Company and conducted by Management Compensation Services, a division of Hewitt Associates LLC. It is the first HFMA survey to be devoted entirely to compensation. In previous years, compensation data were obtained as part of CFO profile survey findings.