Director of Finance Salary Guide

What is the Average Salary of a Director of Finance?

The average salary of a Director of Finance in the US is $195,022.

How Does Tenure Impact Salary?

Years of Experience Salary Range Notes
3-5 Years $130,000 – $180,000 Solid experience in financial management, strong accounting and financial analysis skills. Proven ability to lead a team and manage specific financial areas.
6-8 Years $150,000 – $200,000 Extensive experience in financial leadership, with a track record of success in a Director of Finance role. May oversee multiple finance functions and contribute to strategic financial planning.
8+ Years $180,000 – $250,000+ Deep financial expertise and proven leadership skills. Experience managing complex financial operations and potentially leading a large finance team.
3-5 Years
Salary Range $130,000 – $180,000
Notes Solid experience in financial management, strong accounting and financial analysis skills. Proven ability to lead a team and manage specific financial areas.
6-8 Years
Salary Range $150,000 – $200,000
Notes Extensive experience in financial leadership, with a track record of success in a Director of Finance role. May oversee multiple finance functions and contribute to strategic financial planning.
8+ Years
Salary Range $180,000 – $250,000+
Notes Deep financial expertise and proven leadership skills. Experience managing complex financial operations and potentially leading a large finance team.

How Does Organization Size Impact Salary?

Company Size Salary Range Notes
Small (Less than 100 Employees) $90,000 – $130,000 May oversee all financial operations with limited staff support.
Mid-Size (100-1,000 Employees) $120,000 – $160,000 Likely to manage a small team of finance professionals and focus on core financial activities (accounting, budgeting, reporting).
Large (1,000-10,000 Employees) $150,000 – $200,000 Increased responsibility for strategic financial planning, potential involvement in mergers & acquisitions or investor relations. May lead a larger finance department.
Very Large (10,000+ Employees) $180,000 – $250,000+ Overseeing complex financial operations, potentially leading a team of directors or senior managers within the finance department.
Small (Less than 100 Employees)
Salary Range $90,000 – $130,000
Notes May oversee all financial operations with limited staff support.
Mid-Size (100-1,000 Employees)
Salary Range $120,000 – $160,000
Notes Likely to manage a small team of finance professionals and focus on core financial activities (accounting, budgeting, reporting).
Large (1,000-10,000 Employees)
Salary Range $150,000 – $200,000
Notes Increased responsibility for strategic financial planning, potential involvement in mergers & acquisitions or investor relations. May lead a larger finance department.
Very Large (10,000+ Employees)
Salary Range $180,000 – $250,000+
Notes Overseeing complex financial operations, potentially leading a team of directors or senior managers within the finance department.

Which Industries Pay Directors of Finance the Most?

Industry Justification
1. Financial Services (Banking, Insurance, Investment Management) * Highly regulated industry with complex financial instruments, global operations, and strict financial reporting requirements. * Directors of Finance need deep financial expertise in areas like risk management, capital allocation, regulatory compliance, and mergers & acquisitions. * Financial services firms are willing to offer top dollar to attract and retain Directors of Finance with the necessary skills and experience to navigate the complexities of this industry.
2. Technology (Software & Internet) * High-growth and fast-paced environment with complex financial modeling needs due to subscription-based revenue models, potential for R&D expenses, and frequent acquisitions. * Directors of Finance need to be strategic partners to the CEO, guiding financial decisions for rapid growth and potential IPO readiness. * They also need strong understanding of financial modeling for emerging technologies and managing the risks associated with high-growth startups or established tech giants. * Competitive salaries are offered to attract skilled financial leaders who can navigate the ever-changing tech landscape.
3. Healthcare & Pharmaceuticals * Growing and complex industry with evolving regulations, pressure on costs, and potential for mergers & acquisitions. * Directors of Finance need to manage financial aspects of clinical trials, drug development, ensure pricing strategies comply with healthcare regulations, and navigate the unique financial challenges of the sector. * Expertise in value-based care models and managing the financial risks and opportunities in this dynamic industry becomes crucial. * Competitive salaries are offered to attract skilled financial leaders who can manage the financial complexities of the healthcare sector.
4. Energy & Utilities * Capital-intensive industry with significant financial modeling needs due to fluctuating commodity prices and infrastructure projects. * Directors of Finance need to manage risk associated with energy market volatility, ensure financial stability, and potentially oversee complex financing arrangements. * Experience in areas like project finance, regulatory compliance, and financial modeling for energy markets can be valuable assets. * Competitive salaries are offered to attract skilled financial leaders who can navigate the financial complexities of the energy sector.
5. Consumer Goods & Retail * Large, global companies with complex supply chains, international operations, and potential for mergers & acquisitions. * Directors of Finance need to manage financial aspects of inventory management, pricing strategies, and ensure profitability across various product lines and geographical regions. * Expertise in international financial operations, managing foreign exchange fluctuations, and understanding consumer spending trends becomes crucial for multinational corporations. * Competitive salaries are offered to attract skilled financial leaders who can manage the financial aspects of a global consumer goods or retail company.
1. Financial Services (Banking, Insurance, Investment Management)
Justification * Highly regulated industry with complex financial instruments, global operations, and strict financial reporting requirements. * Directors of Finance need deep financial expertise in areas like risk management, capital allocation, regulatory compliance, and mergers & acquisitions. * Financial services firms are willing to offer top dollar to attract and retain Directors of Finance with the necessary skills and experience to navigate the complexities of this industry.
2. Technology (Software & Internet)
Justification * High-growth and fast-paced environment with complex financial modeling needs due to subscription-based revenue models, potential for R&D expenses, and frequent acquisitions. * Directors of Finance need to be strategic partners to the CEO, guiding financial decisions for rapid growth and potential IPO readiness. * They also need strong understanding of financial modeling for emerging technologies and managing the risks associated with high-growth startups or established tech giants. * Competitive salaries are offered to attract skilled financial leaders who can navigate the ever-changing tech landscape.
3. Healthcare & Pharmaceuticals
Justification * Growing and complex industry with evolving regulations, pressure on costs, and potential for mergers & acquisitions. * Directors of Finance need to manage financial aspects of clinical trials, drug development, ensure pricing strategies comply with healthcare regulations, and navigate the unique financial challenges of the sector. * Expertise in value-based care models and managing the financial risks and opportunities in this dynamic industry becomes crucial. * Competitive salaries are offered to attract skilled financial leaders who can manage the financial complexities of the healthcare sector.
4. Energy & Utilities
Justification * Capital-intensive industry with significant financial modeling needs due to fluctuating commodity prices and infrastructure projects. * Directors of Finance need to manage risk associated with energy market volatility, ensure financial stability, and potentially oversee complex financing arrangements. * Experience in areas like project finance, regulatory compliance, and financial modeling for energy markets can be valuable assets. * Competitive salaries are offered to attract skilled financial leaders who can navigate the financial complexities of the energy sector.
5. Consumer Goods & Retail
Justification * Large, global companies with complex supply chains, international operations, and potential for mergers & acquisitions. * Directors of Finance need to manage financial aspects of inventory management, pricing strategies, and ensure profitability across various product lines and geographical regions. * Expertise in international financial operations, managing foreign exchange fluctuations, and understanding consumer spending trends becomes crucial for multinational corporations. * Competitive salaries are offered to attract skilled financial leaders who can manage the financial aspects of a global consumer goods or retail company.

How to Increase Your Salary

Advanced Professional Certifications

Pursue higher-level finance certifications such as the Certified Public Accountant (CPA), Chartered Financial Analyst (CFA) or Certified Treasury Professional (CTP). These certifications deepen expertise in niche areas of finance.

According to the CFA Institute, CFA charterholders often experience significant salary increases due to the certification’s prestigious reputation and rigorous skill set. For example, the CFA Salary Guide indicates that professionals with a CFA designation can expect higher compensation packages compared to non-charterholders, reflecting the value of this expertise in strategic financial management and investment analysis.

Pursue an Executive MBA or Relevant Advanced Degree

Enroll in an Executive MBA program with a finance focus or pursue a specialized master’s degree in finance. These advanced degrees are designed to deepen leadership skills, enhance business acumen, and expand strategic thinking capabilities.

According to the Graduate Management Admission Council (GMAC), graduates of Executive MBA programs often see substantial increases in their compensation packages. The Executive MBA Council states that graduates can expect a salary increase of about 14% on average upon completion of their program. This is because the advanced leadership and strategic skills acquired make the individual more valuable to their current employer and more competitive in the job market, especially for top-tier financial roles within large organizations.

Leadership in Major Financial Projects

Lead major financial projects that have a significant impact on the company’s bottom line, such as mergers and acquisitions, major capital projects, or corporate restructuring.

Leading successful projects that contribute substantially to the company’s profitability can justify higher salary demands. According to a report by Payscale, finance directors who have demonstrated success in leading major projects and initiatives often see salary increases reflecting their direct contribution to improving the company’s financial health.