CFOs in India are expected to be visionary leaders, risk managers, and financial experts simultaneously. But does their salary package reflect the complications and demands of their role? The Chief Financial Officers (CFOs) are in high demand across different industries in India.
But is it true for all CFOs? No, the salary of a CFO depends on the job location, industry type, education, and experience. On average, the salary package ranges between ₹12 lakhs – ₹3 crores per year, from entry-level to senior-level roles.
However, depending on the company size and structure they are linked with, the overall compensation package can go up to ₹12 – ₹16 crore per year. So, if you are aiming for the top of the finance ladder, understanding the CFO salary in India is crucial.
In this blog, we will help you understand the CFO salary in India across industries and different experience levels, factors that affect CFO compensation, and the skills and qualifications you need to become a CFO.
Table of Contents
What is a Chief Financial Officer (CFO)?
The chief financial officer (CFO) is responsible for driving strategy, management, and planning, making them an important member of an organisation’s executive team. From driving business growth and profitability to sustainability, a CFO plays a key part in the functioning of a company. A CFO is responsible for several duties, including financial planning and strategy, risk management, financial reporting and analysis, managing investor relations, and compliance.
Moreover, a CFO also advises the CEO on companies for potential acquisitions, capital budgeting, and planning for IPOs. They have a key role in implementing environmental, social, and corporate governance (ESG) reporting standards. From helping in setting technology direction, especially in fintech, and guiding the team on everything from marketing to supply chain based on their financial insights and market trends, a CFO performs all roles efficiently.
Today, from startups to established giants, all want a CFO’s expertise to secure finances and meet regulatory demands. In particular, CFOs with experience across both Indian and multinational companies are highly valued as they bring additional value to businesses by handling diverse geographic interests.
What Does a Chief Financial Officer Do? Roles and Responsibilities
A Chief Financial Officer (CFO)’s role involves managing the financial actions of a company, which is important to ensure the financial health and stability of a company.
Key Roles that a CFO performs are:
- The CFO handles the financial operations of the company.
- It also provides leadership to the accounting and finance departments.
- Also, it ensures operations are efficient and follows laws and company policies.
- It strives to promote a strong company image while reducing costs.
The CFO role requires a multi-dimensional financial role, including financial planning, risk management, and capital management.
Key Responsibilities that a CFO performs are:
- Financial planning and analysis (FP&A), including planning, forecasting, budgeting, and analysis, to help businesses make data-backed decisions.
- Investor relations means managing relations with investors and analysts to communicate the company’s financial performance to the investment community.
- Risk management involves identifying and reducing financial risks that could impact a company’s operations.
- Financial reporting and analysis include preparing and presenting financial reports of the company to management and directors.
CFO Salary in India Based on Experience
Salaries of CFO vary based on experience, location, and industry ranging from ₹12 lakh – ₹3 Crore annually and ₹1.5 – ₹7.2 lakhs CFO salary per month. Let’s take a look at the salaries of CFOs from the entry-level to the senior level in India.
- Entry-level CFO Salary: An entry-level CFO has around 0-5 years of experience and can expect a salary range between ₹12 – ₹25 lakhs per year.
- Mid-level CFO Salary: With an experience of 5-15 years, mid-level CFOs can expect between ₹25 – ₹75 lakhs per year.
- Senior-level CFO Salary: Senior-level CFOs have experience of 15+ years, so they can expect packages exceeding ₹75+ lakhs per year, which can go up to ₹3 Crores per year as well.
Additionally, CFOs working in large companies or MNCs can potentially expect an average salary ranging from ₹4 – ₹6 crore per year. In many scenarios, the overall compensation package can also go up to ₹12 – ₹16 crore per year, depending on the structure and size of the company they are related to.
CFO Salary in India by Industry
CFO salaries in India vary across industries. The average salary range which an industry offers is as follows:
|
Industry Type |
Average Annual Salary | Years of Experience |
| IT Services and Consulting | ₹90.5 Lakhs per Year | 9-29 years |
| Banking and Financial Services | ₹29.1 lakhs per year | 11-29 years |
| Real Estate | ₹53.5 lakhs per year | 11-28 years |
| Manufacturing and Heavy Industries | ₹79.8 lakhs per year | 11-29 years |
| Fashion and Textile | ₹87.1 lakhs per year | 12-29 years |
CFO Salary in India by City
Here is the city-wise breakdown of CFO salary in India:
|
City Name |
Average Salary |
Years of Experience |
| Delhi NCR | 46.7 lakhs per year | 11-29 years |
| Mumbai | ₹69.2 lakhs per year | 11-29 years |
| Bangalore | ₹70.3 lakhs per year | 11-28 years |
| Hyderabad | ₹44.7 lakhs per year | 11-29 years |
| Pune | ₹37.8 lakhs per year | 12-29 years |
Examples of a CFO’s Salaries from India’s Leading Companies
The following table highlights some of India’s top companies’ CFO:
|
CFO Name |
Company |
Average Salary Package (Approx.) |
| Srikanth Venkatachari | Reliance Industries Limited | ₹22 Crore Per Year |
| Samir Seksaria | Tata Consultancy Services | ₹5 Crore Per Year |
| Koushik Chatterjee | Tata Steel | ₹14 Crore Per Year |
| Ritesh Tiwari | Hindustan Unilever Limited | ₹9.3 Crore Per Year |
| Anuj Jain | Indian Oil Corporation | ₹1 Crore Per Year |
| PB Balaji | Tata Motors | ₹19 Crore Per Year |
| Arnab Roy | Maruti Suzuki | ₹4 Crore Per Year |
| Devang Gheewalla | Kotak Mahindra Bank | ₹3 Crore Per Year |
| Jayesh Sanghrajka | Infosys Ltd. | ₹7 Crore Per Year |
| Niraj Shah | HDFC Life | ₹4 Crore Per Year |
Also, the average CFO startup salary in India ranges between ₹50 lakhs – ₹2 crores per year, depending on factors such as funding stage and size of the company.
Key Factors That Affect CFO Salary in India
Several key factors affect a Chief Financial Officer’s salary in India. Some of these are as follows:
1. Level of Work Experience
A CFO’s salary is typically determined and negotiated on the basis of their work experience. For example, if you join a company or organisation as a fresh-faced CFO, you can expect to earn an average CFO salary of ₹12 – ₹25 lakh per annum, while for a senior-level CFO, it ranges between ₹75 lakh – ₹3 crore per annum. And with experience, it can go up to ₹12 – ₹16 crore per year.
2. Location (City)
Your work location also impacts the CFO’s salary in India. Cities like Mumbai, Bangalore, Delhi, and Hyderabad have a high cost of living, because of which CFOs demand higher salaries. While in cities like Jaipur, Bhopal, and Nagpur, the salaries of CFOs are comparatively lower due to the low cost of living and lower expenses.
3. Education and Qualification
Postgraduate degrees like an MBA in Finance or ACA (Associate Chartered Accountant), and professional certifications like the CFA, FRM, and CPA can help you build a solid CFO profile. Further, completing a well-credited CFO course can also help to get a higher salary package.
4. Company Size and Profit
One of the important factors that affects the average CFO salary in India is the size and profit of the company. Generally, large companies with more profit tend to offer a higher salary package to their CFOs because of the complexity of their financial management and associated costs.
How to Become a CFO in India – the Entire Process
After knowing about the average salary package a CFO gets depending on their experience level, location, industry type, etc. Now, let’s discuss the detailed process of how to become a CFO in India.
Step 1: Graduate with a Finance Degree
To become a chief financial officer (CFO), you first need to get an undergraduate and postgraduate degree in a finance-related discipline. For an undergraduate program, you can opt for a B.Com or BBA course in finance, commerce, economics, or accounting. After completing your bachelor’s degree, going for an MBA in Finance or a Master’s in Finance or Accounting can speed up your journey to becoming a CFO.
Step 2: Get a Professional Certification
Having a professional certification like CA, CMA, or CFA, or enrolling in a CFO course, like the Chief Financial Officer course from key institutions like IIMs, KPMG, and ISB, can help you get ahead in your career and earn more.
Step 3: Gain Practical Experience
You cannot become a CFO after just graduating. The role demands experience, knowledge, and practice in related areas like finance, business operations, etc. You can start working in entry-level positions like an accountant or financial analyst, and gradually move to senior-level positions like a financial controller, director, etc.
Step 4: Build Essential Skills
Learn and develop important skills related to the CFO role. These skills include strategic thinking, risk management, analytical and critical thinking skills, leadership, and financial expertise. Having these skills helps you to land the CFO’s role much more easily.
Step 5: Network and Build Relationships
Consider connecting with C-suite executives and company leaders. Go to relevant events and expand your network. This will help you make a strong professional network and also allow you to improve your skill set.
Top Benefits and Perks for CFOs in India
Apart from their generous salary, CFOs also get some extra perks like company cars, travel allowances, or club membership by the company. Here are some of the major perks they get:
1. Bonuses and Stock Incentives: Often, depending on the company’s financial success, CFOs get the chance to earn performance-based bonuses and stock incentives. It can include annual cash bonuses, stock options, profit-sharing schemes, or other forms of equity compensation.
2. Health and Insurance Benefits: Generally, a company provides its CFO with comprehensive health insurance coverage for them and their family, covering medical, vision, and dental care. They could also benefit from life insurance, disability insurance, Directors & Officers (D&O) insurance, and other insurance plans.
3. Retirement Plans: A CFO enjoys a retirement package that includes various benefits. These include defined contribution pension schemes, defined benefits, stock options, etc. Some CFOs may also get severance packages andred compensation.
4. Career Growth: Several companies may also provide CFOs with opportunities for continuing education to boost their growth. Further, these companies also support CFOs to attend industry conferences and executive education programs at top business schools.
Important Skills and Qualifications to Become a CFO in India
Becoming a CFO in India requires individuals to have a strong foundation in finance or accounting, with advanced degrees and skill sets.
Required Educational Qualifications
- Bachelor’s Degree: The first step towards becoming a CFO is acquiring a Bachelor’s Degree. It can be in Accounting, Finance, Business Administration, or Economics.
- Postgraduate Degrees: After completing a bachelor’s degree, you can enroll in an MBA (Finance) or Master’s in Finance/Accounting program to improve your career opportunities.
- Professional Certifications: Holding a professional certificate like a Chartered Accountant (CA), Chartered Financial Analyst (CFA), Certified Public Accountant (CPA), Cost and Management Accountant (CMA), or ACCA (Association of Chartered Certified Accountants) helps you get a higher position and package.
Required CFO Skills
A CFO requires excellent leadership and management skills apart from technical expertise. They should possess the following qualities:
- Communication
- Risk Management
- Financial Modeling
- Technological competence
- Strategic thinking
- Decision-making and Problem-solving
- Leadership and Team management
- Time management
Want to become a Chief Financial Officer (CFO)? Check out the CFO Course by IIM Ranchi, which is especially curated to improve your financial management and corporate governance skills.
Conclusion
In conclusion, the CFO salary in India reflects both the strategic importance of the role and the extensive experience in demands. A CFO is a second-highest-paid executive in an organisation after the CEO. With a salary package that reflects their critical role, CFOs can expect a rewarding career path filled with opportunities for growth and innovation. If you aspire to lead financial strategy at the highest level, now is the time to invest in the right experience, qualifications, certification, and leadership skills.
FAQs
1. How much does the CFO earn in India?
A CFO can earn something between ₹12 Lakhs to ₹3 Crores per year, and a CFO salary per month can be between ₹1.5 – ₹7.2 lakh per month, depending on their role, industry type, location, and experience level.
2. How can the Chief Financial Officer (CFO) increase their salary?
A Chief Financial Officer (CFO) can increase their salary by upskilling, gaining a certification relevant to their field, and acquiring practical experience.
3. Is a master's degree important to be a CFO?
Although, having a master’s degree is not mandatory to become a CFO but having one can improve your chances of getting the role early.
4. Is CFO a difficult job?
Yes, the role is hard and demanding. A CFO must handle financial strategy, investor relations, compliance, and risk while connecting numbers with strategic outcomes. There is a constant pressure of delivering precision, adaptability, and anticipation, making it one of the most challenging positions.
5. What is the difference between, CEO vs COO vs CFO salary?
Typically, the CEO earns more. The salaries of all three roles depend on the company size, location, and experience. The average salary that a CEO can expect something between ₹1.5 Crore – ₹6 Crore+ per year, while a COO’s salary can range between ₹90 lakh – ₹2.8 Crore per year. And, the Chief Financial Officer’s salary ranges between ₹80 lakh – ₹3 crore per year.
6. Which industries pay the highest salaries to CFOs in India?
Typically, banking and financial services pay the highest salaries to CFOs in India.
7. Who is the highest-paid CFO?
The highest-paid CFO is Vaibhav Taneja, who is the CFO of Tesla.