Corporate Tax Executive Compensation in 2017 – The Real Story

When you spend years acquiring compensation data on corporate tax executives you learn a lot! TaxConnections conducts a compensation study every two years given the enormity of the project. This requires an extraordinary amount of effort to compile information, match up technical responsibilities for specialized tax roles, organize the information by geographical regions, and make sense of a wide range of equity programs. We conduct compensation studies in order to help corporate management teams attract the tax talent they need. These studies are not money-makers given the great deal of time it takes to prepare them. It is difficult to obtain salary information as people must trust you in order to get the real story! We must also organize it in a fashion that makes sense when you step out of the realm of base plus bonus and into the realm of equity and perks which are as vast as the sea. What you need to know is the real story behind corporate tax compensation if you want to successfully retain and keep the very best tax talent on the market..

The key to the success of large multinational tax organizations is retention of technically qualified management level tax executives. With the growth of new companies, the demand for corporate tax talent has risen dramatically while the talent pool is not growing quickly enough to meet the current demand. Lack of knowledge in compensating corporate tax executives comes at a great cost when you lose this talent or find yourself searching for it today! Corporate tax experts are saving companies millions annually and executive teams take notice of low effective tax rates. Management teams who see tax as their partner in the executive suite are saving companies money that would otherwise be lost forever.

Over the years, I have been fortunate enough to work with some of the greatest corporate tax executives in the world. They have been on the front lines protecting multinational corporations. They are smart, ethical and work within the laws of the governments with amazing technical finesse. They have also taught me that there are corporate management teams who do not make a business move without looking at the tax implications. On the flip side, there are corporate management teams who make deals and call me to help them find a tax executive to address the tax challenges they found themselves facing.

Smart in-house tax executives will save a company millions annually. Management teams need to listen to them and their tax planning strategies because the great talent loves the tax profession and look at it as a passionate puzzle to be mastered. You must get it right when it comes to compensating your corporate tax executives or run the risk of losing them to competitors who will be happy to pay them competitively.

Companies generally have a pay range or compensation culture they want the tax executives to fit into but the market is considerably more competitive now. Everybody is getting ready for Tax Reform and it will shake the landscape of many corporations who are not ready for these changes. It will also create a war for tax talent. Smart companies are reviewing tax compensation for improved retention strategy and increased tax management hiring due to Tax Reform.  There are companies who will be at the tip of the spear and those who will be flying in the wind to meet corporate financial goals. However, the companies armed with the best tax strategists dealing with a windfall of changes due to tax reform will yield the best results.

As a person who was a very young tax recruiter during President Reagan’s Tax Reform Act of 1986, I can confirm that business exploded during this time because of the tax law changes. Companies needed to add tax professionals to address the changes and their impact on corporate tax organizations. This same aggressive environment is appearing again as competition for highly qualified tax executives increases in this very active market.

If you are unknowingly under-compensating your tax executives you often find out only when you lose them to more competitive companies. The loss of a senior tax executive is the loss of very valuable historical financial information for the company and the losses are often not realized or understood until years later. Your goal and focus should be to retain your in-house tax expertise. My advice to C-Suite management teams is to become familiar and knowledgeable on tax executive compensation.

If you would like a copy of our 2017 Tax Executive Compensation Report, please Click Here for more information on how to obtain one of our current reports. There is a cost depending on the type of report and the number requested.

Have a question? Contact Kat Jennings

Kat Jennings, TaxConnections, CEO and Founder and Advisory Team provides three areas of services: 1) Internationally recognized, retained executive search services for multinational corporations, public accounting firms, and law firms; 2) Introductions of sellers to buyers of small and medium size accounting firms; and 3) Provide brand building and education services that support and prepare accounting firm owners to buy/sell an accounting practice. We focus on educating the journey to sell a practice and how to increase firm revenue prior to any sale. Our program ensures you start years prior to a sale by learning what is expected of you during the selling process, and introducing firm Partners to cross selling opportunities that are easy to implement and reduce your workload at the same time. We introduce you to value added connections to smartly grow revenue in your accounting practice.

Kat Jennings has been retained by organizations worldwide to locate tax professionals with highly specialized tax knowledge and expertise. She has a thorough understanding of the tax business community, with a proven record of stellar performances matching professionals with organizations. Bringing two parties together to work successfully is the art of understanding personalities, cultural fit, expectations by both parties, flexible or inflexible work environments, understanding what drives and motivates each party, and revolves around the personality and ethics of each executive team.

Kat is a widely recognized expert in high level, tax executive search, as well as connecting buyers and sellers of accounting firms. TaxConnections provides and educates small to medium size accounting firms owners and Partners how to prepare and sell their firms so they can build a succession plan for their retirement. With larger firms seeking to acquire smaller accounting practices, there is a real need to help firm owners prepare to be acquired. Most firm owners are unaware they are not ready to sell when they decide to retire. TaxConnections educates firm owners’ what they need to do years in advance of selling an accounting firm practice.
Senior tax executives expect the utmost privacy when being introduced to multinational organizations about a new tax opportunity under consideration. Having said that, companies searching for a new head of tax expecting tax executive candidates to submit their resume through a resume portal, will never see a full slate of outstanding tax executives available due to a candidates’ desire for greater privacy. This is why privacy focused Uber Tax Recruiters consistently outperform in-house recruiters on tax executive searches.

We offer our clients a Performance Retainer Agreement arrangement so their HR department can still recruit and compete with the tax candidates we present on Head of Tax searches. The client pays us a partial fee upfront, and if they find a candidate they deem better than we introduce to them, we forfeit the final fee. Most of the time, they love and prefer our private introductions to tax executive candidates better than what they source through their own resume portals.

When we represent selling/buying small to medium-sized firms, firm owners/partners also demand greater privacy when considering the sale of their practice. TaxConnections provides a safe place to discuss their business needs, elevate their practices’ online reputation, and increase revenue through new streams of business development by outsourcing work and partnering with other firms. Over three decades, we have worked tirelessly to build relationships between firm owners most organizations rarely have access to in the world of tax. There are numerous possibilities you may never have considered previously to bolster the value of your practice and service offerings.

As a globally recognized consultant to multinational organizations, accounting firms, and law firms searching for tax expertise, Kat has been retained by public accounting firms, law firms, and corporations worldwide including Apple Computer, AC Neilson, Accenture, Agilent Technologies, Allergan, Alza, American Express, American Media, Aon, Baker & McKenzie, Barclays Bank, Bechtel, Cargill, Carl Zieuss Vision, Century Aluminum, Chevron, Clorox, Citigroup, Commercials Metals, Constellation Energy, Countrywide, Del Monte, Deloitte Touche, DFS, DLA Piper, E&J Gallo Winery, Electronic Arts, Ernst &Young, Fox Entertainment, Fremont Investments, General Electric,General Motors, Herbalife, Hewlett Packard, Hyatt, Intel, Jones Lang LaSalle, Kimco Realty, KLA Tencor, Koch Industries, KPMG, Levi Strauss, Liberty Mutual, LKQ, Loews, Logitech, Lucas Film, Maersk, McKesson, Nalco, Newell Rubbermaid, Nissan, Oracle, Orbitax, Pacific Gas & Electric, PwC, QAD, SAIC, SanDisk, Sanmina, Sempra Energy, SONY, Synopsys, Ticketmaster, Trimble Navigation, Toyota, Univar, Wal-Mart, Wells Fargo, Vertex, Yahoo, Xilinx, and many more not listed here.
Contact Kat at 858,999.0053 Office/858.232.4415 Cell or kat@taxconnections.com to request a private consultation regarding the sale of your practice, adding top talent to your organization, or merging your practice with another firm owner with a book of business. The possibilities are endless; if you have a dream of a new vision for your professional life; we will scout opportunities throughout the market to make it happen.

Facebook Twitter LinkedIn Google+ Flickr YouTube Vimeo    

Subscribe to TaxConnections Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.