Financial Services Firms Could See Benefits Cuts
Nearly four in 10 of the CFOs said their firms are reducing salary increases, and stock options and other forms of equity-based compensation (38% each), according to a release of the survey results. But salaries are not the only thing falling; almost a third (31%) of survey respondents said employees’ 401(k) match is being reduced and 27% reported health care benefits are being reduced.
CFOs also indicated disability benefits and life insurance benefits are being reduced (10% each).
Nearly eight in 10 CFOs (79%) indicated they were most concerned about the cost of employee benefits.
In spite of their actions, the survey found CFOs are more confident about the economy. Forty-six percent said they believe the economy will improve in the next six months, and 49% indicated they expect their companies’ financial prospects to improve over the same time period.
Around one-quarter (26%) of respondents said their company will increase hiring in the next six months, while 60% indicated they expect headcount to remain the same.
Grant Thornton LLP conducted the biannual national survey from September 21 through October 2 among 846 CFOs and senior comptrollers from public and private companies, of which 63 were from financial services companies.