If you can't take the heat ...

• Author: Hollein, Marie
• Position: President's page

The month of May brings some much-needed warmth to the Northeast and, similarly, many "hot" topics are on the minds of financial executives across the country. The global financial crisis and resulting economic downturn have created some of the most intense scrutiny and pressure on executive compensation in American corporate history. With companies reporting widespread executive-base salary freezes, decreased bonus budgets and 2008 payouts below targeted levels, long-term incentives are expected to be one of the biggest executive compensation issues this year.

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Restructuring executive compensation packages has stirred a lively debate among proponents and critics alike. While some call for a regulatory regime that would set compensation standards on financial institutions, others believe that, with shrinking base salaries and slashed bonuses, U.S. companies won't be able to effectively attract and retain necessary talent.

Financial Executives Research Foundation has published the results of its third annual survey of financial executives regarding their salaries, bonuses, long-term incentives and retirement benefits. The survey has a unique perspective, as it was completed by financial executives--your peers. With the information provided directly from those being compensated, the 2009 Financial Executives Compensation Survey can help you determine how your pay, and that of your staff, stacks up against your peers.

The changing role of the chief financial officer was increasingly evident in this year's survey, as CFOs reported that the distribution of responsibilities has expanded broadly in areas such as operations, administration, planning and mergers and acquisitions. The most common performance measures continue to be company and individual goals and objectives. However, this year the decrease in company and individual goals as a performance measure has been offset by an increase in the use of earnings before interest, taxes, deprecation and amortization (EBITDA).

What's next for organizations? Do more/get more? Control the caps? Either way, compensation is--and will continue to be--top of mind.

Financial regulatory reform also ranks among the hottest topics these days, both in the U.S. and globally. President Barack Obama's administration has proposed a four-pronged approach to financial regulatory reform, centering on: a potential move to a systemic risk regulator; consumer and investor protection; eliminating...