Topic: General Posts

Subject: Executive Compensation - Beauty/Cosmetics
John Beck
Member: 2006
Posts:1
Submitted on 09-19-17 10:36 am
Message:

I am trying to get a sense of what CFO compensation should be for a $150 million company in the beauty/cosmetics industry. In addition, what could I expect to reasonably ask for on an hourly basis to perform this role on an interim basis?


Please send responses to turnpikeman@msn.com


Thanks for any assistance you can provide.

 
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Replies
Tom Cawley
Member: 2002
Posts: 1

Subject: Re:Executive Compensation - Beauty/Cosmetics

Submitted on 09-27-17 9:26 am.
Message:

John,


Have you cosidered a 'day rate' as an alternative to an hourly rate for the interim opportunity ?  I have found that an hourly rate does not fit the job responsibilities well.   It is too senior and broad a role to be clocked.  You gain a lot of freedom to do what needs to be done.

 
David Fowler
Member: 2004
Posts: 3

Subject: Re:Executive Compensation - Beauty/Cosmetics

Submitted on 10-02-17 12:12 pm.
Message:

I agree with last comment; a few years ago I backfilled as CSO for a company reporting directly to CEO and agreed a day/weekly rate with its CFO so, as he put it at time, he wouldn't worry what it cost him every time I exchanged pleasantries with people at the coffee machine! He expected an approximate daily schedule and I always arrived a bit earlier and left somewhat later, plus we often lunched together and worked some lunch - and subsequent to project was hired full time by CEO and CFO to both resume strategy role and to turnaround / run several operating divisions.


So also bear future potential in mind when setting rate?


As for rates, not sure why that industry would pay more/less than most others. You might check the various search firms' annual salary guides for CFO range for that geography and size of entity (I have one I can look it up for you if needed) and adjust consulting nature, 1099 versus W2 taxes, benefits etc..


I'm inbetween successes myself at present and spoke recently about an interim CFO roles with a recruiter; he indicated client was looking to pay $100-$150 / hour and you can reckon he was adding a fair mark-up onto that for hiis firm's 'fee' so you may have added advanatge of going direct and "splitting difference" with your client for mutual benefit?


If you know any fractional CFOs or firms it would be worth knowing what they charge?


Good luck


David


djfowler713@gmail.com


www.linkedin.com/in/davidfowler-profitmaker

 
David Schoenberger
Member: 2003
Posts: 3

Subject: Re:Executive Compensation - Beauty/Cosmetics

Submitted on 10-04-17 10:18 pm.
Message:

I have recently researched this exact question in order for me to prepare a proposal that I have recently submitted to a client.  Based on my research with existing consultants and companies I believe that the following makes sense---


a. use $175-$200 per hour as basis for calculations. 


b. billing should be based on a standard 40 hour week even though the consultant plans and commits to work at least 40 hours per week and probably more. 


c.  billing should be either weekly or monthly but not based on a time sheet on which hours are tracked-  this is not appropriate for a CFO level and as stated above... as a consultant I expect to focus on getting the objetives done and likely working more than 40 hours a week. 


d. I recommend a definition of objectives, deliverables or clear goals. 


e.  I recommend to NOT include travel time as part of that 40 hour minimum.  


f. of course hotel, meals, travel expenses - reasonable - should be covered. 


Please let me know if I can be of further support and please let me know if you would like to strong candidates for this project as I believe that I can be of help on that too.   Best regards,   David            dschoenberger4@aol.com.  


 

 
David Schoenberger
Member: 2003
Posts: 3

Subject: Re:Executive Compensation - Beauty/Cosmetics

Submitted on 10-04-17 10:24 pm.
Message:

John


I noted that the first part of your question deals with compensation for a permanent CFO-   


a. I would figure $200-250 base with bonus of 30%-50%.


Again, please let me know if you want the names of some good candidates. 


best regards, 


David

 
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