CEO compensation is one of those areas companies want to get right, especially if it means avoiding the ire of customers or the wrath of a Board / Shareholders. It makes sense.
What about measuring CFO performance? Does anyone really care? Hopefully the Finance Chief cares, since his measurable contributions can not only drive his current pay but future pay with a new company.
Rarely – very rarely – do my CFO clients have a written record of their measurable impacts when we begin working together. For many of them, recognizing the importance of those measurables is akin to a V-8 moment. When the light bulb goes on, suddenly it all makes sense.
And I’m not just talking about a listing of measurable results. I’m talking about being crystal clear in all your marketing messages and documents about your ability to understand the problem (the pain factor), create a strategy to solve the problem (you are hired for your problem-solving skills), and then, your documented record of executing the initiative through to both a bottom-line impact and a longer term strategic positioning.
You might be valuable … but when you start with the pain factor, your value increases exponentially.
Tracking your ability to impact often affects your current pay, but it can also greatly increase your negotiating power when you make the decision to move.