Understanding the Director of Financial Planning and Analysis Salary: What to Expect
As a finance professional, the role of Financial Planning and Analysis (FP&A) Director may be top of mind when it comes to career growth and salary potential. The FP&A team plays a crucial role in providing insights and forward-looking analysis to assist companies in their decision-making and allocation of resources.
If you’re considering pursuing a career as an FP&A Director, it’s essential to understand the salary expectations to plan and strategize accordingly.
The Scope of FP&A Director Role
FP&A Directors are responsible for overseeing financial planning, forecasting, budgeting, and analysis functions. They work collaboratively with cross-functional departments such as sales, marketing, and operations to provide sound financial guidance. As the role requires high-level strategic and analytical skills, education and extensive experience in finance-related functions are typically required.
The Average Salary of FP&A Director
According to Glassdoor, the national average salary for an FP&A Director in the United States is $148,578 per year. Salaries can range from $98,000 to $218,000, depending on a variety of factors, such as location, company size, and industry.
Factors that Influence FP&A Director Salaries
The salary range of an FP&A Director can vary depending on several factors, such as:
Location
As with any profession, location is a significant factor that impacts salary levels. The city or state where the company is located can impact an FP&A Director’s salary significantly. For instance, an FP&A Director’s average salary in San Francisco is $182,936 per year, whereas in Atlanta, it’s $137,482 per year.
Company Size and Industry
The size and industry of the company an FP&A Director works at will affect their salary. Generally, the larger the company, the higher the salary. This relates to the complexity and magnitude of the financial analysis and projection tasks. While the technology and finance industries generally pay higher salaries for FP&A Directors, other industries such as healthcare and retail also provide attractive compensation for finance professionals.
Education and Experience
Education and experience play a crucial role in deciding an FP&A Director’s salary. While a finance-related bachelor’s or master’s degree is typically a requirement for the role, higher education levels such as an MBA can provide a higher edge in the job market. Additionally, extensive experience in finance-related functions such as risk management, financial analysis, and budgeting are essential for a successful career as an FP&A Director.
Conclusion
As with any profession, the salary of an FP&A Director depends on a variety of factors such as location, company size, industry, education, and experience. Though the average salary of an FP&A Director in the United States stands at $148,578, professionals can expect to earn more in certain locations and industries. It’s essential to weigh these factors carefully and strategize accordingly as you pursue a career in FP&A.
