CFO Salary UK 2026 | Chief Financial Officer Pay Guide

CFO Salary by Company Size & Type

The single biggest determinant of a CFO's salary is the size and complexity of the organization. Below is a detailed breakdown of market rates in the UK for 2026.

1. SME CFO (£10m - £50m Turnover)

In Small to Medium Enterprises (SMEs), the CFO is often "hands-on," managing a small finance team while acting as the strategic right hand to the owner or CEO.

• Base Salary: £80,000 - £120,000
• Bonus: 10% - 30% of base
• Equity: Rare in family-owned businesses; common in private equity-backed SMEs (though often realized only on exit).

At the lower end of this bracket (turnover under £10m), the role is often titled "Financial Controller" or "Head of Finance" rather than CFO, though the responsibilities may overlap.

2. Mid-Market CFO

Mid-market companies generally have a more complex structure, international operations, or significant external funding.

• Base Salary: £120,000 - £200,000
• Bonus: 30% - 50% of base
• Package: Car allowance, private health, and often a clearer path to equity participation.

3. FTSE 250 CFO

Entering the Public Limited Company (PLC) arena changes the landscape significantly. Governance, investor relations, and regulatory compliance become paramount.

• Base Salary: £200,000 - £500,000
• Total Compensation: Often 2x to 3x base salary due to LTIPs.
• Scrutiny: Pay is public information and subject to shareholder approval.

4. FTSE 100 CFO

The elite tier of UK finance leadership. These roles are global, highly strategic, and intensely pressurized.

5. Venture-Backed Startup CFO

In the startup world (Series A to Series C), cash conservation is key. CFOs here are "Chief Future Officers," selling the vision to investors for the next funding round.

• Base Salary: £90,000 - £140,000 (often lower than market average).
• Equity (Options): 0.5% - 1.5% of the company.
• Risk/Reward: High risk. If the company becomes a unicorn, that 1% could be worth millions. If it fails, the equity is worthless.

6. Public Sector Finance Director

Roles in the NHS, Local Government, or Civil Service differ in structure. Pay is transparent and banded.

• Range: £60,000 - £120,000 (reaching higher for large departments).
• Benefits: Define Benefit Pension schemes (highly valuable compared to private sector DC schemes).

Structure of a CFO Package in 2026

Negotiating a CFO package requires looking beyond the monthly payslip. The "Total Reward Statement" is the key metric.

Base Salary

Fixed cash. Used as the multiplier for bonuses and pension contributions.

Annual Bonus (STIP)

Short-Term Incentive Plans are usually linked to EBITDA targets, cash flow conversion, or revenue growth. In 2026, ESG (Environmental, Social, and Governance) targets are increasingly attached to bonus payouts.

Long-Term Incentive Plans (LTIP)

The "Golden Handcuffs." These are share awards that vest over 3 to 5 years, contingent on the company meeting long-term goals (e.g., Total Shareholder Return or Earnings Per Share growth). For FTSE CFOs, this is often the largest component of wealth generation.

Pension & Benefits

Car allowances (£6k-£12k), private medical insurance for family, and life assurance (4x salary) are standard. Pension contributions are often capped or taken as cash due to tax limits.

Finance Director (FD) vs. CFO: What's the Difference?

While the titles are sometimes used interchangeably, there is a distinct hierarchy in professional definitions.

The Finance Director is traditionally the steward of the accounts. They ensure the numbers are right, the audit is clean, and reports are timely. It is an operational and control-focused role.

The CFO is a strategic partner. They ask "What do the numbers mean for our future?" They lead M&A activity, negotiate debt facilities, handle investor relations, and drive commercial strategy. A CFO will often have an FD reporting to them.

Tax Implications for High Earners (2026)

CFOs face specific tax challenges in the UK system:

• Personal Allowance Taper: For every £2 earned above £100,000, the £12,570 Personal Allowance reduces by £1. This creates an effective tax rate of 60% on income between £100,000 and £125,140.
• Additional Rate: Income over £125,140 is taxed at 45%.
• Pension Taper: Very high earners may see their Annual Pension Allowance reduced, limiting how much can be put into a pension tax-free.

Frequently Asked Questions