Surveys of the Month: Surveys Find Moderate Raises for Controllers

Salaries for controllers are holding steady, having received moderate increases for this year. In general, demand for controllers and other finance titles remains solid, in spite of the economy, and this is reflected in raises. One study, the 2009 Salary Guide, Accounting & Finance from Robert Half International, found raises up to 3.4 percent for 2009. In the past, this may have been a small increment, but in a time when firms are slashing pay budgets and cutting salaries, it is substantial enough.

Two other studies, the 2008 Compensation Report from the Association for Financial Professionals (AFP) and the 2009 Salary Guide for Finance & Accounting Professionals from Ajilon, reveal salaries broken out by a number of factors.

By Size of Company

The Robert Half study reported the highest raises for the controller title. At companies with $500 million or more in sales, the average salary range is $130,250 to $167,750 and the raise was 3.4 percent (see Table 1). Firms with sales of $250 million to $500 million pay an average of $108,000 to $142,500, also with a 3.4 percent increase. Companies with $100 million to $250 million in sales offered a 3.3 percent raise to reach $91,750 to $120,500. Organizations with $50 million to $100 million in sales gave 3.2 percent raises and have a fairly wide pay range of $75,500 to $101,500. While those with up to $50 million in sales also shelled out 3.2 percent raises, the salary range is much lower at $66,000 to $86,750.

Corporate controllers have higher salaries in general, but their raises were smaller overall, ranging from 2.1 percent to 2.8 percent. Corporate controllers at the largest companies ($500 million or more in sales) have both the highest raises and salaries, at 2.8 percent with a range of $135,750 to $180,000.

Corporate controllers working in organizations with $50 million to $100 million in sales had the smallest pay increase of 2.1 percent, to reach a range of $90,750 to $118,250.

Divisional controllers also received raises of less than 3 percent. For example, those at firms with $50 million to $100 million in sales got a 2.2 percent raise, for a range of $86,250 to $109,750. Divisional controllers at the largest companies saw a 2.7 percent increase to get to $122,500 to $156,250 in salary.

Some assistant controllers enjoyed larger raises. Specifically, those at firms with $250 million to $500 million in sales had 3.4 percent raises and a pay range of $88,500 to $114,250. Likewise, those at firms with up to $50 million in sales are paid an average of $53,250 to $72,000 and pulled in 3.3 percent increase for 2009.

To adjust for regional variances in pay, the Robert Half study uses a two-step technique. Step 1 establishes national ranges for the starting salaries of controllers. According to employer size, these are:

• revenue up to $50 million: $78,250 to $101,750
• revenue from $50 million to $100 million: $89,000 to $115,750;
• revenue from $100 million to $250 million: $102,250 to $134,750.;
• revenue from $250 million to $500 million: $117,500 to $157,750; and
• revenue of $500 million or more: $32,250 to $175,000.

Step 2 adjusts these national salary ranges with city-based variances that RHI receives from the Bureau of Labor Statistics. The variances in nine regions are:

1. New England: Boston, 130; Springfield, Mass., 92.
2. Middle Atlantic: New York City, 141; Rochester, N.Y., 93.
3. South Atlantic: Washington, D.C., 130; Greenville, S.C., 95.2.
4. East North Central: Chicago, 123; Grand Rapids, Mich., 90.
5. West North Central: Minneapolis, 103; Omaha, Neb., 94.
6. East South Central: Memphis, Tenn., 95; Lexington, Ky., 84.1.
7. West South Central: Houston, 107.5; Oklahoma City, 88.
8. Mountain: Phoenix, 106; Boise, Idaho, 86.1.
9. Pacific: San Francisco, 135; Fresno, Calif., 90.

By Region and Education

The study from the AFP breaks out pay data by several factors, including education, experience, and region. The associated table reveals pay ranges by region.

There are substantial differences for controllers in the four regions in the AFP study. The national mean base salary for a controller in this study is $116,400 (see Table 2). In the Midwest, the base salary is lower, at an average $105,600, while it is far higher in the West, at $124,300.

In terms of bonuses, the overall mean is $24,200. Across all four regions, the mean bonus amount is fairly close; the highest is $25,900 in the Northeast and the lowest is $22,200 in the Midwest.

The mean total compensation is $129,600. The West and Northeast are close in amount, at $136,600 and $132,300, respectively, followed by the South with $130,700. Total comp in the West trails at $113,700.

The AFP study also found that the effects of education and years of experience on the compensation of controllers are surprisingly small. For example, the average controller lifts his or her salary by $13,000, to $120,000, by acquiring an MBA or graduate degree (not shown in table). At the same time, that person lifts his or her total compensation by $11,700, to $125,000.

Experience, however, does not pay off nearly as well for controllers. The salaries of the most experienced controllers are only $5,500 more than the salaries of those with less than five years on the job. Meanwhile, their total compensation is only $10,400 higher.

For example, the average controller lifts his or her salary by $13,000 to $120,000 by acquiring an MBA or graduate degree. At the same time, that person lifts his or her total compensation by $11,700 to $125,000.

By Region and Size of Company

The 2009 Salary Guide for Finance & Accounting Professionals from Ajilon covers average salaries by company size and region. For example, a controller working at a small firm with under $250 million in annual revenue will earn the most in the Northeast, where the pay range is $105,000 to $153,000 (see Table 3). The West has the lowest range, at $75,000 to $105,000.

Among midsize companies ($250 million to $1 billion in revenue), those located in the Midwest offer the highest salary range, at $140,000 to $186,000. Companies in the South come close, with an average range of $139,000 to $182,000. Once again, companies in the West have the lowest range, at $85,000 to $115,000.

Large companies have more than $1 billion in revenue. Those located in the Northeast pay their controllers the most: $189,000 to $276,000. Large Midwestern firms also pay well: $182,000 to $265,000.

The job description for a controller includes the following: holds the highest line supervisory position in the financial division, is responsible for all financial reporting and recordkeeping functions, and has complete responsibility for the protection of the company’s assets.

The assistant controller’s responsibilities include controlling a significant sequence of divisional activities and assisting in the development of detailed budgets and cash forecasts.

Purchase Information

The 2009 Salary Guide, Accounting & Finance is available from Robert Half International, 888-400-7474; www.roberthalfmr.com. Cost: Free.

The 2008 Compensation Report from the Association for Financial Professionals is only available to members. To join, contact the AFP at 301-907-2862; www.afponline.org. Cost to join: $395.

The 2009 Salary Guide for Finance & Accounting Professionals is available from Ajilon, 866-GO-AJILON; www.ajilonusa.com. Cost: Free.