COMPENSATION REPORT FOR FINANCIAL PROFESSIONS WITH CANDIDATE RECRUITMENT INSIGHTS

2016 COMPENSATION REPORT FOR FINCIAL PROFESSIONS WITH CANDIDATE RECRUITMENT INSIGHTS

TABLE OF CONTENTS 3 4 8 12 16 24 26 30 Letter from the CEO Using the Report High-Demand Professionals & Qualifications Top Reasons for Choosing a New Position Accounting & Finance Salary Survey Report Adjusting Salaries by Location Bonus Report Century Group: Identify. Evaluate. Deliver. TM

LETTER FROM THE CEO Even with economic improvement over the last several years, our research continues to show that numerous variables remain more important than compensation when it comes to career selection. Dear Colleagues, Century Group has provided compensation information directly to our clients, candidates and professional associations for more than 25 years. For the past two years, we have shared this information more broadly by publishing Century Group s Compensation Report for Financial Professions a comprehensive resource with the latest data on salaries, bonus compensation and the differences between markets to the entire profession. This has been an interesting time to research salary details. After producing our Compensation Report in 2014, salaries went through a period of growth to catch up with the economy, following the big post-recession recovery. This year, we are seeing more consistent numbers more indicative of steady economic conditions with an average variance of 2.3 percent. When asked about compensation, I share the following: Most opportunities pay within a few percentage points of one another, so don t use pay as the sole or even top criteria. The best careers are built on factors such as learning, opportunity, responsibility, visibility, mentors, great management and quality companies. Weigh these factors as heavily as compensation and you ll enjoy greater success and greater job satisfaction. Investing in experience will pay greater dividends throughout your career. We hope you find the latest edition of Century Group s Compensation Report for Financial Professions useful in salary decisions. We also invite you to view the details about current career opportunities, networking events and career research at century-group.com. We look forward to working together. Sincerely, Even with economic improvement over the last several years, our research continues to show that numerous variables remain more important than compensation when it comes to career selection. We had previously seen that growth / opportunity and company culture went head-to-head as the first and second factors ahead of compensation. This year, the opportunity for challenge and growth has edged ahead as the top priority in today s career landscape (see page 15). Ron Proul Chief Executive Officer Century Group 2 3

USING THE REPORT Our report was compiled using data collected from our constituents and other data sources available to our wage and compensation analyst. Our methodology thereby gives the most current evaluation of the data available. OUR REPORT WAS DEVELOPED BY 1 Tapping the depth of industry knowledge of our team of Executive Recruiters and Interim Staffing professionals who are experts in accounting and finance, and who ve executed nearly 20,000 recruiting and interim assignments over the last decade 2 Century Group s analysis of workplace trends and hiring forecasts 3 Proprietary research and surveys of CFOs and accounting, finance, tax and audit professionals and executives from 1,000+ organizations Accounting and finance departments are organized in pyramids; this pyramid serves as the framework for compensating individuals by title and size of company. Our report includes the salary ranges for 34 core accounting, finance, tax and audit positions from professional level to senior executive covering the 25 th to 75 th percentile, based on company size. Along with the salaries, you will find other data in this guide to help you evaluate current and prospective opportunities, including why individuals choose opportunities, and the bonuses and benefits companies are currently providing. Other qualitative considerations, such as service time, work ethic, qualifications, skills and the quality of employers, will impact individual compensation decisions, as will other factors not included in this report, such as years of experience, size of the organization and complexity of the work. We ve provided a separate section covering cash bonus compensation for various professional levels in the accounting and finance function. Other forms of compensation stock options, benefits and retirement programs are not considered in this report. Please note that while this compensation report provides current data to assist you with compensation decisions, it cannot anticipate the effects that market forces will have in the coming year. 4 5

SURVEY PARTICIPANT PROFILE ABOUT THE PARTICIPANT ABOUT THE COMPANY COMPANY BUSINESS STRUCTURE EMPLOYEE LOCATION COMPANY EMPLOYEES Senior / Staff Level: 27% Non-profit: 7% U.S. Headquarters: 7% 1,001 4,999: 15% Vice President Level: 10% C-Level: 14% Publicly Held: 33% Privately Held: 60% Regional Location: 19% Corporate Headquarters: 74% 5,000+: 25% 1 100: 29% 101 1,000: 31% COMPANY REVENUE / BUDGET $501 M $1 B: 11% COMPANY LOCATION Ventura County and other parts of Southern California: 8% ACCOUNTING EMPLOYEES Director Level: 24% Manager / Supervisor Level: 25% $1 B+: 30% $1 $50 M: 29% $51 $500 M: 30% Orange County: 25% Los Angeles County: 67% 51+: 25% 11 50: 34% 1 10: 41% 6 7

HIGH-DEMAND PROFESSIOLS & QUALIFICATIONS Since 2010, we ve witnessed a significant increase in the hiring of professionallevel and management-level employees across multiple disciplines in accounting, finance, tax and audit. The surge in hiring for professionals continues to drive down the unemployment rate nationwide. The 2015 unemployment rate for college graduates continued to decline to 2.5%, down from 2.9% in 2014. This represents a nearly 14% decline in unemployment for college graduates in 12 months. According to some economists, we ve essentially reached full-employment for those with college degrees and, in some regions, for those with in-demand advanced credentials CPAs and MBAs unemployment is estimated at 2.1%. We see these trends in our daily work with clients as they seek in-demand qualified professionals for their teams to execute growth strategies and take advantage of new opportunities. We also continue to see a demand for advanced degrees and credentials, as well as Big 4 and Fortune 500 experience. HIGH-DEMAND ROLES IN ACCOUNTING & FINCE ACCOUNTANTS We are seeing the highest demand for accountants at the senior level. Demand is especially high for professionals with a CPA license and 2+ years of experience. CONTROLLERS AND ACCOUNTING MAGERS These continue to be the crucial roles for expanding companies. The increase in scrutiny and compliance requirements make these key management roles. AUDITORS Demand for internal auditors remains strong in private industry as companies deal with increased regulatory and compliance requirements. The demand for auditors at CPA firms has expanded dramatically as these firms respond to increased client activity. The CPA designation remains the most in-demand in the audit profession. 8 9

FINCIAL ALYSTS As with the other roles on this list, the demand for senior financial analysts is greater than the supply at present. The most in-demand position is the Senior Financial Analyst with an MBA and 5+ years experience in private industry or leading management consultancies. FINCE MAGEMENT As the economy has improved, we ve noted an increase in demand for financial management. Emerging and growing companies are seeking experienced managers to build out the finance function and develop the corporate infrastructure. HIGH-DEMAND CREDENTIALS CPA We are seeing particularly high demand for accounting professionals that are also Certified Public Accountants (CPAs). Achieving a CPA credential is critical for career advancement in the accounting, finance, tax and audit functions. The CPA designation is the most frequently required credential. CPAs with Big 4 accounting firm experience are seeing even higher demand. MBA A master s degree in business administration (MBA) continues to be the credential most sought after for senior-level executive and mid-management roles in corporate finance. 10 11

TOP REASONS FOR CHOOSING A NEW POSITION The hiring environment for accounting and finance professionals has continued to improve over the past few years, and this change is no longer a surprise to most companies. The general public is largely unaware of the talent shortage facing certain professions. The national unemployment rate fell below 5.0% at the beginning of 2016, and as noted earlier, the national unemployment rate for college graduates stood at 2.5% at the end of 2015. The low unemployment rate for accounting and finance professionals has left companies struggling to find the right talent with the credentials and experience to meet the challenges of an expanding economy. Companies often turn to us for insights on how top talent makes career decisions. As companies compete for highly sought after accounting and finance talent, they are revisiting how they attract key professionals (see page 15). As in previous reports, compensation came in third, which is not surprising. Growth / Challenge / Role is largely the number one priority in today s economy, followed by Culture / Fit. More and more, candidates must consider competitive offers, and we continue to see that they will make decisions based on these factors. That said, top professionals often have multiple offers providing growth and challenge, where they fit with the culture and management. Competitive compensation still remains a powerful tool for attracting and rewarding top performers. 12 13

In addition to offering competitive compensation, the most effective tools for attracting top accounting and finance talent are: TOP REASONS FOR CHOOSING A NEW POSITION Promotion opportunities and clearly defined career paths Continuing professional development and training Performance bonuses Flexible schedules Location / commute Not only are these tools effective in attracting top talent, they also help companies guard against the departure of high performers. GROWTH OPPORTUNITY / CAREER CHALLENGE / POSITION ROLE COMPANY CULTURE / FIT WITH MAGEMENT & TEAM COMPENSATION & BENEFITS PACKAGE Our annual survey has revealed the top reasons accounting and finance professionals give for selecting their current company. 32% 20% 18% 2.3% Average variance in data from 2015 to 2016 WORK / LIFE BALANCE & FLEXIBILITY 11% 9.75% Although the average variance in data for this past year was 2.3%, 68% of those surveyed earned an increase with their last review, promotion or job change. Average percentage increase reported from a promotion or job change last year COMMUTE / LOCATION COMPANY STABILITY JOB STABILITY 9% 7% 3% 14 15

ACCOUNTING & FINCE SALARY SURVEY REPORT Divided into two categories Corporate Finance & Accounting and Public Accounting our report covers salary ranges for 34 positions, from professional level to senior executive. 16 17

COMPANY REVENUE SIZE 25 TH PERCENTILE 50 TH PERCENTILE 75 TH PERCENTILE COMPANY REVENUE SIZE 25 TH PERCENTILE 50 TH PERCENTILE 75 TH PERCENTILE CORPORATE FINCE & ACCOUNTING STAFF ACCOUNTANT $45,338 $53,899 $56,089 $55,382 $52,672 $57,488 $57,762 $59,706 $58,521 $63,359 $62,301 $65,015 CHIEF FINCIAL OFFICER $159,582 $234,391 $257,395 $342,711 $202,808 $302,135 $354,272 $446,557 $269,811 $383,764 $438,496 $570,504 ACCOUNTS RECEIVABLE MAGER $65,745 $70,870 $79,580 $88,290 $76,026 $78,526 $86,946 $95,365 $89,154 $98,154 $104,614 $111,074 CHIEF ACCOUNTING OFFICER $127,747 $125,911 $138,254 $199,231 $162,997 $156,741 $183,020 $266,550 $190,330 $217,953 $242,690 $354,124 CREDIT & COLLECTION MAGER $69,534 $85,784 $85,034 $84,284 $82,721 $93,971 $94,596 $95,221 $89,095 $103,220 $130,782 $158,345 CONTROLLER (CORPORATE & REGIOL) $113,219 $145,784 $166,899 $200,748 $141,257 $178,259 $217,842 $258,035 $180,499 $224,577 $263,173 $346,066 ACCOUNTS PAYABLE MAGER $66,745 $70,245 $80,868 $91,490 $77,776 $75,276 $87,914 $100,552 $88,529 $90,529 $101,294 $112,058 ASSISTANT CONTROLLER / ACCOUNTING MAGER $92,361 $99,986 $105,986 $107,486 $101,371 $111,371 $113,871 $118,871 $114,306 $125,181 $133,181 $135,681 VP FINCE $150,457 $157,795 $171,793 $233,582 $164,668 $191,192 $190,776 $269,104 $193,811 $215,358 $233,976 $301,767 SENIOR ACCOUNTANT $61,633 $63,903 $64,418 $65,302 $70,945 $70,778 $73,689 $74,375 $78,643 $80,535 $81,277 $81,260 TREASURER $162,282 $220,527 $244,658 $357,986 $187,501 $257,057 $285,248 $417,514 $221,890 $304,553 $337,996 $494,845 18 19

COMPANY REVENUE SIZE 25 TH PERCENTILE 50 TH PERCENTILE 75 TH PERCENTILE COMPANY REVENUE SIZE 25 TH PERCENTILE 50 TH PERCENTILE 75 TH PERCENTILE DIRECTOR OF FINCE $127,309 $130,508 $138,262 $145,954 $148,786 $148,208 $156,047 $163,838 $176,228 $169,712 $173,198 $186,842 DIRECTOR OF INTERL AUDIT $142,226 $152,980 $183,915 $162,232 $173,524 $208,107 $187,495 $201,698 $247,838 DIRECTOR, SEC REPORTING $107,525 $132,750 $125,000 $167,100 $160,800 $140,000 $140,190 $186,505 $187,067 $178,750 $170,285 $206,010 MAGER OF INTERL AUDIT $102,483 $110,069 $113,327 $117,796 $115,684 $122,644 $129,802 $127,302 $121,937 $133,334 $137,365 $142,990 FINCE MAGER $99,636 $104,636 $109,636 $109,136 $110,678 $118,178 $125,678 $121,678 $123,879 $130,879 $135,379 $137,879 INTERL AUDIT SENIOR $72,259 $78,651 $85,673 $82,673 $80,713 $82,686 $92,316 $90,016 $93,914 $90,932 $97,908 $100,408 SENIOR FINCIAL ALYST $73,823 $77,505 $80,445 $77,683 $84,392 $85,747 $87,513 $86,607 $94,200 $94,638 $95,198 $95,643 INTERL AUDIT STAFF $50,605 $57,559 $64,513 $69,513 $59,526 $66,624 $73,722 $75,222 $69,033 $77,927 $86,822 $82,447 STAFF FINCIAL ALYST $54,064 $57,130 $57,552 $60,284 $59,531 $65,827 $65,383 $68,065 $69,882 $74,428 $76,128 $75,114 VP TAX $211,540 $230,118 $278,215 $249,615 $271,606 $335,955 $299,138 $325,532 $378,724 VP INTERL AUDIT / CHIEF AUDIT EXECUTIVE $145,645 $175,805 $188,803 $244,945 $165,549 $200,859 $215,927 $292,186 $191,821 $233,702 $251,305 $345,372 DIRECTOR OF TAX $141,835 $163,557 $185,279 $154,284 $181,660 $209,036 $171,335 $202,443 $233,552 20 21

COMPANY REVENUE SIZE 25 TH PERCENTILE 50 TH PERCENTILE 75 TH PERCENTILE ALL FIRMS 25 TH PERCENTILE 50 TH PERCENTILE 75 TH PERCENTILE MAGER OF TAX $115,080 $105,500 $120,980 $108,110 $125,500 $132,160 $133,185 $135,650 $136,250 $142,500 $148,650 $163,200 PUBLIC ACCOUNTING AUDIT PARTNER* All Firms $234,611 $574,500 $1,400,000 TAX SENIOR $80,183 $73,623 $75,933 $86,462 $82,542 $85,712 $93,506 $98,721 $102,256 AUDIT SENIOR MAGER Small Firm Mid-Size Firm Large Firm $95,250 $107,250 $134,600 $112,425 $133,375 $165,200 $134,850 $162,500 $182,600 TAX STAFF $78,207 $72,278 $71,139 $81,511 $79,496 $78,373 $86,765 $88,723 $84,362 AUDIT MAGER Small Firm Mid-Size Firm Large Firm AUDIT SENIOR Small Firm Mid-Size Firm Large Firm $105,200 $106,350 $115,500 $67,625 $71,550 $75,950 $111,650 $118,900 $122,350 $74,800 $82,900 $84,525 $120,125 $127,550 $145,425 $83,500 $89,750 $93,350 TAX PARTNER* All Firms $237,300 $634,500 $1,385,000 TAX SENIOR MAGER Small Firm Mid-Size Firm Large Firm $95,600 $112,525 $124,350 $117,225 $142,275 $168,225 $142,500 $177,625 $202,175 TAX MAGER Small Firm Mid-Size Firm Large Firm $85,850 $97,475 $110,500 $98,675 $113,450 $124,750 $112,950 $128,125 $140,675 TAX SENIOR Small Firm Mid-Size Firm Large Firm 22 23 $67,625 $71,550 $85,125 $74,800 $84,900 $98,850 $83,500 $97,750 $113,100 *All compensation

Use this graphic to calculate the estimated salary range for a position in the desired region. 97.3% SEATTLE ADJUSTING SALARIES BY LOCATION 101.9% BOSTON 109.4% SAN FRANCISCO LOCATION MODIFIER 100% LOS ANGELES 111.5% SAN JOSE 96.0% SAN DIEGO 83.0% SALT LAKE 84.5% PHOENIX 91.5% DENVER 91.9% DALLAS 94.6% CHICAGO 93.7% HOUSTON 86.6% ST LOUIS 88.4% ATLANTA 94.0% PHILADELPHIA 88.3% CHARLOTTE 107.9% NEW YORK 99.7% WASHINGTON DC & SURROUNDING METRO AREA The regional salary ranges provided in this report can be modified for 18 major metropolitan areas. The geographic adjustments provided in our Location Modifier will provide general guidance for determining salaries in each location. 24 25

BONUS REPORT Bonuses have become an increasing part of the overall compensation offer. Positioned as incentives for performance, they also include other factors such as company performance, individual performance and overall market conditions. Our research shows that bonus compensation is currently the second most common form of non-salary compensation, behind only Medical, Dental, Life and Vision Insurance. Once again, company size played a significant role in bonus structures, as the more aggressive bonus rates were used by mid-market companies to beat out Fortune 1000 companies in the competition for top talent. In our independent research, we noted that: 76 PERCENT of the companies surveyed had a bonus compensation program 80 PERCENT of those surveyed at these companies were awarded bonuses 68 PERCENT of the bonus target was awarded on average 26 27

COMPANY REVENUE SIZE 25 TH PERCENTILE 50 TH PERCENTILE 75 TH PERCENTILE COMPANY REVENUE SIZE 25 TH PERCENTILE 50 TH PERCENTILE 75 TH PERCENTILE ACCOUNTING & FINCE CASH BONUS SURVEY REPORT C-LEVEL 20.0% 25.0% 40.0% 30.0% 30.0% 40.0% 50.0% 35.0% 50.0% 50.0% 60.0% 40.0% MAGER / SUPERVISOR LEVEL 9.5% 14.0% 12.0% 15.0% 25.0% 11.0% 18.0% 20.0% VICE PRESIDENT LEVEL 20.5% 30.0% 20.0% 25.0% 26.0% 35.0% 32.5% 30.0% 30.0% 40.0% 40.0% SENIOR / STAFF LEVEL 6.0% 5.0% 8.0% 18.0% 8.0% 15.5% 23.5% 21.0% 14.0% CONTROLLER LEVEL 10.5% 20.0% 17.5% 12.0% 15.0% 21.5% 25.0% 15.0% 18.0% 25.0% 35.0% DIRECTOR LEVEL 15.0% 17.0% 15.0% 22.5% 20.0% 25.0% 20.0% 26.5% 25.0% 35.0% 32.0% 28 29

CENTURY GROUP: IDENTIFY. EVALUATE. DELIVER ṬM Century Group connects top tier finance and accounting professionals to the companies that need them. That s it. No operations directors or marketing VPs or CIOs. Just finance and accounting, professional to executive level, on a project, interim or direct placement basis. It s what we know. And what we re known for. Our clients are leading private and public organizations ranging from start-up to emerging mid-market to global Fortune 1000 enterprises. Our scale and expertise enable us to identify, evaluate and deliver professional and executive talent that no one else can. Over the years, we have developed extensive functional and industry expertise and an unrivaled external network. EXECUTIVE SEARCH & PROFESSIOL RECRUITMENT Unlike other recruitment firms, we don t specialize in finance and accounting. We re experts in it. So we have an intimate understanding of the level of insight, expertise and finely honed talent companies need to mitigate risk, boost performance and drive growth. We ve been developing relationships with candidates who bring precisely that for more than 25 years. With our dedicated focus and insider access to prime candidates, Century Group delivers the best of the best. More swiftly and surely than the rest. INTERIM & PROJECT SERVICES Whether you ve suddenly lost your CFO or a new project demands more expertise than you have in-house, our senior-level professionals are ready and able to bridge the gap. Using our proven executive search methodology, we ve hired some of the field s leading talent as our own. Their sophisticated skill sets and seasoned business acumen make these Big 4 and Fortune 500 veterans an asset to your team and ours. With Century Group, when the need is immediate, so is the solution. 30 31

POSITIONS FILLED In the last decade, we ve conducted nearly 20,000 search and interim assignments for leading Southern California-based companies in a growing range of industries, successfully filling positions such as: ACCOUNTING Chief Accounting Officer Vice President, Accounting Controller Assistant Controller Director of Accounting Accounting Manager Senior Accountant FINCE Chief Financial Officer Treasurer Vice President, Finance Director of Finance Finance Manager Senior Analyst AUDIT & TAX 1 PROCESS 3 PHASES EVERY BOX TICKED From on-demand project staffing to time-sensitive executive searches, our solutions are individually designed to meet each company s specific needs and goals. All by way of the same process: PHASE 1 PHASE 2 PHASE 3 32 Partner (CPA Firm) Vice President, Tax Director of Internal Audit / Risk Tax Manager Audit Manager Senior Professional, Tax or Audit IDENTIFY EVALUATE DELIVER Learn more at www.century-group.com

EL SEGUNDO COSTA MESA GLENDALE WESTLAKE VILLAGE 800.337.9675 www.century-group.com