Having been retained by CFOs of multinational corporations to build tax departments for three decades, I acquired substantial knowledge on tax executive compensation. This post is intended to share what I have discovered during conversations with tax executives in Northern California. We have conducted a national tax compensation study but for the purposes of this report we are spotlighting Northern California.
In the event you currently have a need for a tax executive, you should know what tax executives with companies in the $1B to $10B range are making prior to embarking on a search for one. This is part of a 26 page national report on tax executive compensation we issued in the past year.
Lead Tax Executive / Job Description Summary
Reporting Relationship: Reports to CFO
Lead Tax Executive Titles: Chief Tax Officer, Senior Tax Officer, Executive Vice President of Tax; Senior Executive Tax Director; Senior Vice President of Tax; Vice President of Tax; Head of Tax (HOT); Head of Worldwide Tax; Worldwide Tax Director; Global Tax Director; VP Tax, Senior Tax Director; Tax Director
The Lead Tax Executive has overall responsibility for directing the tax function of the organization and provides company leadership on tax strategy, tax compliance, tax accounting, tax planning and tax audits. The Lead Tax Executive provides direction to the tax team in compiling, preparing and filing tax returns, analyzing calculations of tax provisions, and the disclosure of all tax matters in company’s financial accounts to ensure compliance with all Federal, State, Local, Property, Sales & Use, and Foreign tax laws in all tax jurisdictions the company operates. They must also ensure compliance with Federal, State, Local, Property, Sales & Use, and Foreign tax laws and regulations; manage and direct the research and identification of tax savings opportunities including appeals to reduce tax assessments, monitor proposed and newly enacted tax legislation and communicate relevant information and provisions to management and business units, and provide guidance to management and business units on all tax matters including legislative and regulatory developments.
The Lead Tax Executive responsibilities also include the direction of staff in the following: Identify, research and resolve tax business matters, ensure compliance with tax laws, rules and regulations, and that all taxes are completed on a timely and accurate basis, provide tax support to business units, manage the research of tax issues and positions taken by the company, review work papers and research prepared by tax staff, build tax models and forecasts for emerging tax issues and analysis by management, collaborate with internal and external parties to gather information, analyze and complete projects accurately, proactively identify areas for process improvements and implement solutions to streamline processes, and special ad hoc projects as required by the executive management team.
Experience: The Lead Tax Executive incumbents in this study all have more than 22 years of experience in one or any combination of a public accounting firm, law firm, corporation or government organization and an undergraduate BS/BA and/or any combination of a CPA, MST, MBA, JD, LL.M.
| Average Annual Base Compensation –Lead Tax Executive is $325,00 USD.
Average Cash Bonus for Lead Tax Executive is 50%. Average Annual Cash Bonus for a Lead Tax Executive is $132,500 USD. Annual Total Cash Compensation – Lead Tax Executive is $487,500 USD.
Total Benefits Awards possible for a Lead Tax Executive are stated below.
LTIPs, RSUs and 401Ks are additional benefit awards which could be valued as much as 2 to 3 times base compensation. When Base Salary Is Low Companies Compensate With Higher RSUs or Equity Compensation.
Equity Compensation is a significant portion of the overall compensation package for a lead tax executive. The majority of tax executives surveyed receive annual stock grants with vesting periods of three to four years.
Base Compensation Base salary does not include any bonuses, benefits or perks associated with the role.
Total Cash Compensation Total Cash Compensation is the amount of base salary and bonus awarded during the year.
Total Compensation And Benefits Total compensation is everything the company provides including base salary, bonuses, benefits, perks and on-site amenities.
Total compensation may indicate that an executive may be making as much as two to three times their base salary. A company may inform you that you are receiving additional compensation, yet rarely discloses the full amount compensated during the entire year. When looking at total compensation, companies offer many types of benefits. Each of these benefits has a cost to the company and a value to the executive. The values of these plans sometimes are not reported. Companies have many unique ways to compensate their employees in addition to annual total cash compensation awarded.
Additional Rewards for Lead Tax Executives: Annual Physical, Association Membership, Automobile Allowance, Banking Services, Childcare Services, Concierge Services, Company Discounts, Club Membership, Food Services, Internet Services, Deferred Compensation Plan, Dental Plan, Education Reimbursement, Eldercare, Executive Retirement Plan, Medical Insurance, Life Insurance, Disability Insurance, Long Term Incentive Program, Mobile Phone, Non -Qualified Plan, Paid Leave, Parking, Phased Retirement, Profit Sharing, Stock Purchase Plan, Restricted Stock Units (RSUs), Retirement Investment Plan, Travel Allowance and Expenses, Vision Plan. Paid Time Off (PTO) was a grouping of vacation days and paid holidays which typically runs between 30-45 days a year depending on the company. Interesting to note that many Lead Tax Executives privately stated they did not take all the days provided given the responsibilities and tax deadlines they had throughout the year. |
If you would like more information on our 26 page report on compensation for corporate tax executives nationally,please contact
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