Good morning. CFOs at newly independent companies can see substantial increases in compensation.
A Compensation Advisory Partners (CAP) study of industrial and manufacturing spinoffs, shared with CFO Daily, found that median target total compensation rose roughly 66% for “SpinCo” CFOs with comparable pre- and post-transaction pay disclosures, compared with 57% for CEOs.
CFO salaries rose 11%, while annual long-term incentive opportunities increased 102%. The study covered 19 major separations involving 29 resulting companies. Median revenue was $11.8 billion for parent companies before the transaction and $5.2 billion for the resulting companies.
