CFO pay got a boost in 2024, in part from equity awards. Some compensation consultants expect pay packages to grow more slowly after many companies lowered their targets on the back of Trump’s global tariff war.
“When there’s a more pessimistic or negative economic outlook, it tends to put a dampener on increases in pay for the executive team,” said Matt Turner, president of executive compensation at Pearl Meyer. While 2025 has come with a lot of challenges for businesses, Turner isn’t convinced that it will result in meaningfully weaker pay. “I just think boards haven’t translated that into compensation austerity yet,” he said.
One other element to look out for will be the prominence of ESG- and DEI-related metrics in pay packages going forward. Consultants say some companies are tempering their language around those areas, using words like “engagement” as opposed to “diversity” and “inclusion.”
Companies are trying to ensure “they’re not drawing negative attention from the administration, but also staying committed to their values,” Turner said.