Many middle-tier websites are earning an annual revenue of at least $350,000.
Finance bosses at mid-sized businesses in the US likely earn a base salary between $300K - $600K annually, according to the latest research by Pennsylvania-based executive search firm JM Search.
A survey conducted by JM Search across their websites revealed that the most common base salary range for these executives in middle-market companies falls between $350,000 and $399,000. These businesses typically generate revenues between $100 million and $500 million.
Approximately 39% of finance heads at organizations with revenue between $250 million and $499 million reported earning at least $350,000. For those at companies with revenues between $100 million and $249 million, the figure was 29%.
As revenue increases, so does the salary. For instance, 38% of respondents at companies with revenue surpassing $500 million stated earning between $400,000 to $449,000 a year in base salary. There were few reports of salaries over $500,000 at mid-market firms.
When it comes to bonuses, JM Search researchers revealed a standard target bonus range of 50% to 59% at middle-market firms. This figure is comparable to bonus structures at larger corporations, with nearly one-third (31%) of large companies' executives earning bonuses greater than 60% of their salary.
JM Search's research primarily focuses on companies owned by private equity or growth equity firms, an area where more finance executives are increasingly finding themselves, given the growing influence of PE in both business and public accounting. The survey shows that 68% of respondents worked at such businesses.
A mere 10% of respondents worked at venture capital-backed firms, while another 16.5% worked at privately held companies. A paltry 4.5% of respondents served at publicly traded firms.
JM Search also discovered clear patterns in the development of finance teams at companies of varying sizes. Smaller companies prioritize hiring controllers, while mid-market companies focus on both controllers and Financial Planning & Analysis (FP&A). Larger companies tend to prioritize FP&A hires.
These findings resonated with JM Search's partners as they reflect industry trends on how finance teams evolve as companies scale. Keep up with similar stories by subscribing to ourwebsite.com's free daily newsletter.
- Finance executives at companies owned by private equity or growth equity firms tend to earn their base salaries within the range of $350,000 to $449,000 annually, according to JM Search's research.
- The growth of a company's revenue seems to have a corresponding effect on the salary of finance executives, with 38% of respondents at companies surpassing $500 million in revenue reporting base salaries between $400,000 to $449,000.
- In smaller companies, the focus is primarily on hiring controllers for their finance teams, while mid-sized businesses place emphasis on both controllers and Financial Planning & Analysis (FP&A).
- There were few reports of salaries exceeding $500,000 at mid-market firms, although these firms typically generate revenues between $100 million and $500 million.
- A standard target bonus range of 50% to 59% is typical at middle-market firms, with nearly one-third (31%) of large companies' executives earning bonuses greater than 60% of their salary.
