Most business professionals would agree that understanding current salary levels is crucial for career growth and advancement.
In this post, you'll discover the latest treasury manager salary data, including ranges based on experience, company size, industry, and location.
You'll see actual average salaries and total compensation packages, learning what's driving higher pay and how to position yourself for larger salaries over time. Whether you're a current or aspiring treasury manager, this analysis will help you maximize your earning potential.
Introduction to Treasury Manager Salaries
The role of a treasury manager is critical in any corporation. They are responsible for overseeing cash management, forecasting, investments, capital structure, and other vital financial functions. As such, compensation levels for these professionals can have significant impacts.
This article will analyze typical salaries for treasury managers. Understanding pay scales enables both employers and job seekers to make informed decisions during the hiring process.
Defining the Role of a Treasury Manager
Treasury managers occupy an essential place on the corporate finance team. Their key duties include:
- Cash flow forecasting and planning capital expenditures
- Managing short-term investments of excess cash
- Overseeing bank relationships and cash positioning
- Maintaining optimal capital structure and cost of capital
- Mitigating financial risks related to interest rates, currencies, commodities, etc.
To succeed in this role, treasury managers must possess sharp analytical abilities, attention to detail, communication skills, and expertise in fields like accounting, finance, economics and risk management.
Importance of Analyzing Treasury Salaries
Examining compensation levels for treasury managers serves multiple important purposes:
- Helps employers set pay scales to attract and retain top talent
- Gives job seekers insight into earning potential to inform career decisions
- Allows both parties to negotiate salaries fairly based on market rates
- Highlights the critical value that treasury managers provide to an organization
By benchmarking salaries, corporations can ensure they compensate these professionals adequately based on their essential contributions. Likewise, treasury managers can better gauge their market worth.
Understanding pay scales ultimately enables effective hiring and career planning on both sides of the table.
Treasury Manager Salary Ranges
Salary by Years of Experience
Entry-level treasury managers with 0-2 years of experience typically earn between $65,000 and $85,000 annually. Those with 3-6 years of mid-career experience make $85,000 to $110,000 on average. More seasoned professionals with 7+ years under their belt usually command salaries ranging from $110,000 up to $150,000 per year.
Comparing Salaries by Company Size
At major corporations in the Fortune 500, treasury managers earn approximately $120,000 to $180,000 on average. Mid-sized companies pay between $90,000 and $130,000 for similar roles. Small businesses offer salaries in the range of $70,000 to $100,000 annually for their treasury management professionals.
Salary Variations by Industry
In banking and financial services, treasury salaries range from $100,000 to $160,000 on average. The manufacturing industry pays between $80,000 and $140,000 typically. Technology companies offer compensation packages from $90,000 up to $150,000. Healthcare organizations provide incomes ranging from $70,000 to $120,000 annually for treasury managers.
Geographic Differences in Salary
On the West Coast, average treasury manager salaries span between $90,000 and $140,000. In Midwestern states, the typical range is $80,000 to $120,000. For East Coast-based roles, incomes usually vary from $100,000 to $160,000. Globally, European and APAC countries offer anywhere from $50,000 to $150,000 based on cost of living and local factors.
sbb-itb-be9f1e0
Additional Compensation
Beyond base salaries, treasury managers may receive other forms of compensation like bonuses, equity, and benefits which also factor into the full pay package.
Performance Bonuses
Many corporations have annual bonus programs to reward employees based on individual and company performance. For treasury managers, common metrics used to calculate bonuses can include:
-
Company earnings - Bonuses may be tied to overall profit levels or specific earnings metrics. Managers in roles that directly impact cash flow may have bonuses linked to operating cash flow targets.
-
Budget management - Coming under budget for the treasury department's operating expenses can translate into higher bonus payouts.
-
Risk management - Maintaining healthy liquidity levels, improving debt profiles, minimizing tax exposures, and controlling financial risks are key goals that tie into incentive pay.
-
Special projects - Leading one-off initiatives like system implementations, capital raises, or acquisition integrations often come with special bonuses.
Bonuses range from 5% to over 50% of base salaries at most companies. The seniority level of the role, the size of the business, and the industry influence the bonus potential.
Long-Term Incentives
Equity compensation makes up a key piece of the pay mix for treasury executives and senior managers. Common long-term incentives include:
-
Restricted stock units - Shares that vest over 3-5 years tied to continued employment. Provides both retention incentive and upside through stock price appreciation.
-
Performance shares - Equity awards that vest based on meeting certain corporate financial metrics like EPS growth, return on capital, etc. Aligns manager interests with shareholders.
-
Stock options - Right to buy company stock at a set price in the future. Rewards share price gains so managers focus on long-term firm value creation.
The value of long-term incentives can often exceed salary, especially at public companies. According to PayScale data, median long-term incentive values range from $50,000 for entry-level treasury analysts up to over $400,000 for C-suite heads of treasuries.
Benefits Packages
Besides monetary compensation, corporate treasury roles come with attractive benefits packages including:
-
Healthcare coverage - Major medical, dental, vision, prescription drug benefits for employees and dependents. Many cover 100% of premiums.
-
Retirement plans - 401(k) matching contributions, pensions plans, profit sharing, and other tax-advantaged retirement savings options.
-
Paid time off - Typically 3-6 weeks of vacation plus sick days offered. Extra vacation weeks accrue with seniority at most companies.
-
Tuition assistance - Some businesses offer tuition reimbursement programs that provide financial help for advanced degrees and professional education.
-
Corporate perks - Examples include gym memberships, commuter benefits, employee stock purchase plans, legal/financial counseling, pet insurance, etc.
Standard benefits packages can effectively increase total compensation by 25-50% for treasury managers relative to base pay.
Career Development for Treasury Managers
Becoming a Treasury Director
Advancing from a treasury manager to a treasury director role typically requires 5-10 years of relevant experience, as well as demonstrated leadership abilities. Key steps to progress include:
- Gaining expertise in areas like cash flow forecasting, debt and investment management, and financial risk mitigation
- Leading key treasury projects and initiatives that deliver significant business impact
- Building relationships with stakeholders like the CFO, audit committee, and board of directors
- Developing managerial skills to oversee teams and mentor junior staff
- Understanding advanced treasury concepts such as derivatives, FX hedging, and global treasury operations
Treasury directors are viewed as senior finance leaders playing a strategic role in organizations. They advise the C-suite on capital structure planning, funding strategies, and other mission-critical decisions driving growth and shareholder value.
Transitioning to CFO
The pathway from treasury manager to Chief Financial Officer is longer but achievable for those with the right mix of financial acumen, leadership presence, and operational experience. Key steps include:
- Mastering treasury management and using it as a launchpad to gain broad finance expertise
- Taking on roles of progressive responsibility such as Finance Manager, Financial Controller, Treasurer, VP Finance
- Leading organization-wide initiatives that create major economic value
- Developing strong executive presence and the ability to communicate complex financial information effectively across the C-suite and board of directors
- Understanding drivers of business growth and demonstrating strategic decision-making capabilities
Given the wide-ranging capabilities required, fewer than 20% of CFOs emerge from a dedicated treasury background. However, treasury does provide a strong foundation in risk management, capital allocation, and balance sheet optimization that maps well onto the CFO skillset. Demonstrating leadership potential and versatility across finance areas is key to rising further.
Conclusion and Key Takeaways
Based on the analysis, here are some of the key takeaways regarding treasury manager salaries:
-
Salaries tend to increase with more years of experience. Entry-level salaries average around $65,000, while senior managers can make over $150,000.
-
Industries like banking and finance tend to pay treasury managers the highest salaries. Healthcare and education are on the lower end.
-
Geographic location impacts salary as well. Major financial hubs like New York and San Francisco pay the most, while lower cost areas pay less.
-
Company size plays a role. Larger corporations have larger treasury teams and budgets, allowing them to pay managers more.
-
Certifications like the CTP can increase salary potential by demonstrating specialized expertise.
-
Salary is ultimately dependent on a combination of factors - experience, location, industry, company size, and credentials. By evaluating these variables, treasury managers can benchmark and maximize their earning potential over their career journey.
