Financial Managers: Salary Overview
Financial managers ensure that an organization is financially healthy.
They do so by creating financial reports, directing investment activities, and designing plans for the long-term financial goals of the organization.
Their job description usually includes preparing financial statements, ensuring that the legal requirements are met, supervising employees, reviewing financial reports, and trying to find ways to reduce costs, analyzing market trends, and providing the management with the information that will help them make financial decisions.
Depending on their area of expertise there are several types of financial managers:
Controllers supervise the preparation of reports that summarize and forecast the financial position of the organization.
Treasurers and finance officers oversee investments and direct the organization’s budget.
Credit managers determine credit limits and oversee the organization’s credit business.
Cash managers are responsible for monitoring the organization’s cash flow to make sure that the business can cover its financial needs.
Insurance managers try to protect the organization against risks and to limit the organization’s losses.
Risk managers try to limit or avoid the chance of financial loss.
According to the Bureau of Labor Statistics, the median annual wage for financial managers was $129,890 as of May 2019 which means that half the workers in this occupation earned less than this while half earned more.
Salaries vary depending on experience, education, and industry of employment, among other factors.
The BLS report shows that in 2019 the top 10 percent earned more than $208,000 while the lowest 10 percent earned less than $68,370 per year.
Financial Manager Salary by Industry
According to the Bureau of Labor Statistics, financial managers held around 653,600 jobs in the United States in 2018, most of them being employed in the finance and insurance field, in the field of professional, scientific, and technical services, or in the management of companies and enterprises sector.
The median annual wage reported by financial managers in the field of credit intermediation and related activities was $120,620 a year.
Financial managers who were employed in the field of management of companies and enterprises reportedly earned $161,360 a year while those who worked for companies that provide accounting, tax preparation, bookkeeping, and payroll services earned around $176,730 a year, on average.
The median annual wage was $201,790 a year for financial managers in the field of securities, commodity contracts, and other financial investment and related activities- the highest paying field for this profession, and $163,600 for those employed by insurance carriers.
The second-highest paying field for financial managers was the motion picture and video industries, a sector where the average annual wage for this profession was $198,430.
Financial managers who worked for cable and other subscription programming companies reportedly earned $195,440 a year while those who worked for the central bank made around $195,340 a year, on average.
There are many other factors that determine a financial manager’s salary, including the level of education and certification.
Although a bachelor’s degree in finance or a related field and a few years of experience are enough for a promotion to a financial manager position, earning a master’s degree in your field of expertise can help you earn a higher-than-average salary.
Certification is not a requirement for this profession but can help prove your skills to potential employers and may improve your earning prospects.
There are several institutions that offer credentials in this field and each one of them has its own experience requirements.
This profession also offers you good advancement opportunities that usually come with a pay raise.
After earning a few years of experience, you can advance to a chief financial officer position, a profession that is paid, on average, with more than $180,000 a year.
* Based on information from the May 2021 salary report from the BLS. The figures represent accumulated data for all states of employment for Financial Managers. BLS data represents averages and medians for workers at all levels of education and experience. This data doesn't represent starting salaries.
* Employment conditions in your area may vary.