Most professionals would agree that determining an accurate salary range for financial operations managers can be confusing.
Well, by leveraging key data points and insights around compensation, you can get a clear picture of typical earnings for these critical roles.
In this post, we'll define financial operations managers, look at their average base salaries and additional compensation, examine the salary range, discuss outlook and impacting factors, and overview career development tips to confidently negotiate salaries.
Introduction to Financial Operations Manager Salaries
Financial operations managers play a vital role in organizations by overseeing the financial health and strategy. Their compensation reflects the importance of this position. In this section, we will explore key details around salaries for financial operations managers.
Definition of a Financial Operations Manager
A financial operations manager plans, directs, and coordinates accounting, budgeting, and related activities. Their core responsibilities include:
- Overseeing the preparation of financial reports, such as balance sheets and income statements
- Implementing and monitoring internal financial controls
- Developing financial goals and budgets
- Managing investment activities and cash flow planning
- Leading teams of accountants, budget analysts, and financial analysts
In summary, financial operations managers have a strategic role in maintaining the financial stability and growth of an organization.
Average Base Salary for Financial Operations Managers
According to the U.S. Bureau of Labor Statistics (BLS), the average annual salary for financial operations managers in the United States as of 2021 was $154,800. This equates to approximately $74 per hour.
Regional variations exist, with financial operations managers earning the highest average salaries in New York ($193,500) and Massachusetts ($174,230).
Common Additional Compensation
Beyond base salary, many financial operations managers receive additional compensation in the form of:
- Annual bonuses based on performance and profits
- Stock options
- Profit sharing
- Commissions
- Overtime pay
These monetary incentives can increase total compensation by 10-50% or more.
Salary Range for Financial Operations Managers
While BLS data shows an average salary of $154,800, the full range of incomes for financial operations managers in 2021 extended from:
- 10th percentile: $92,000
- 25th percentile: $115,000
- 50th percentile (median): $140,000
- 75th percentile: $187,000
- 90th percentile: $237,000
The earning potential has significant range depending on factors like location, industry, experience level, and company size.
Outlook for Financial Operations Manager Wages
The BLS projects employment for financial operations managers to grow 15% from 2021 to 2031, faster than the average across all occupations. Business expansion and increasingly complex financial operations will drive demand. This job growth combined with the specialized skills required suggests that wages may rise faster than average over the next decade.
Factors Impacting Financial Operations Manager Salaries
Financial operations managers are responsible for overseeing the financial activities of companies and organizations. Their salaries can vary significantly depending on a number of key factors.
Experience and Tenure
- Financial operations managers with more years of experience generally earn higher salaries. Those with 10+ years of experience can make well over $100,000 per year.
- As managers gain more experience and expertise, they take on greater responsibilities and oversight, which commands higher compensation.
- Long tenured managers also benefit from annual raises, promotions, and bigger budgets to manage.
Education and Credentials
- Managers who hold advanced finance degrees like MBAs or CFAs typically earn higher salaries given their specialized expertise.
- Earning credentials like a Certified Public Accountant (CPA) or Chartered Financial Analyst (CFA) certification also boosts salary potential.
- Continuing education and training is valued and often rewarded with pay increases.
Industry
- Industries like investment banking, asset management, and private equity tend to pay financial operations managers the highest salaries - often over $150,000 per year.
- More regulated industries like commercial banking and insurance provide lower, but still generous manager compensation.
- High-tech and pharmaceutical industries also pay managers well given available resources.
Company Size
- Larger corporations have bigger budgets to compensate managers handling greater capital and responsibilities.
- Public companies also must pay competitively to attract and retain finance talent and meet shareholder expectations.
- Small businesses often pay below market rates given tighter budgets.
Geographic Location
- Financial hubs like New York, San Francisco, and Chicago offer the highest salaries adjusted for cost of living.
- Areas with a high concentration of finance and banking jobs also pay managers better.
- Smaller metro areas and southern U.S. locations tend to offer lower compensation.
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Career Development for Financial Operations Managers
Financial operations managers play a critical role in overseeing their organizations' financial health and guiding strategic decisions. As such, developing specialized skills and pursuing career advancement opportunities can lead to significant salary growth over time.
Specialized Skills to Develop
Financial operations managers stand to boost their earnings potential by cultivating expertise in high-demand areas like:
- Data analytics and business intelligence
- Risk management and mitigation
- Mergers, acquisitions, and integration
- Regulatory compliance, especially for highly-regulated industries
Obtaining credentials in these domains signals to employers an expanded skillset and ability to take on greater responsibilities.
Obtaining Advance Certifications
Pursuing certifications like the Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA) can also bolster financial operations managers’ qualifications. These designations require passing rigorous exams but tend to command higher salaries.
Switching Industries Strategically
Transitioning into more complex and specialized industries can pave the way for increased compensation. Industries like investment banking, private equity, venture capital, and hedge funds tend to offer higher salaries but require niche expertise.
Transitioning into Executive Roles
With several years of experience managing finances, operations managers may shift into director, VP of finance, or CFO roles. These executive positions provide expanded oversight and influence over organizational finances and strategy while offering higher pay.
Negotiating Salaries Confidently
As financial stewards, operations managers must also advocate for themselves during salary negotiations. Tactics like benchmarking against industry standards, emphasizing specialized contributions, and conveying alternative offers can be used to negotiate stronger compensation packages.
In summary, financial operations managers have many avenues to continue developing their expertise and expanding their responsibilities. Pursuing high-value skills, credentials, industries, roles, and negotiations can all contribute to significant salary growth over the long run.
Conclusion and Key Takeaways
Financial operations managers play a critical role in overseeing the financial health and accounting functions of an organization. Their responsibilities range from preparing financial statements and managing budgets to implementing internal controls and financial systems. As such, they command strong compensation.
Based on the data and analysis presented, here are the key takeaways on financial operations manager salaries and career advancement:
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The average salary for a financial operations manager is $154,790 per year, which is significantly higher than the median salary across all occupations.
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Salaries can vary depending on factors like location, industry, experience level, and company size. Financial hubs and major metropolitan areas tend to pay higher salaries.
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The highest 10% of financial operations managers earn more than $208,000 annually. With substantial experience and expertise, six-figure incomes are attainable.
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Strong growth of 18% is projected for financial operations manager jobs over the next decade, faster than the average across all occupations. Opportunities exist for qualified professionals.
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Ongoing learning and certifications in areas like data analytics, risk management, and regulatory compliance can boost salary potential and career advancement prospects.
In summary, financial operations managers earn lucrative salaries given their high-value strategic role. While the average pay is over $150,000 per year, those with specialized skills and experience in growing industries can earn well into the six figures and beyond.
