Guerdon Associates finds CEO-CFO pay gap is narrowing in ASX 100

Guerdon Associates says ASX 100 CFO pay is rising faster than CEO pay, a shift that could affect board governance and incentive design. The firm says the long-standing 2:1 CEO-to-CFO pay ratio is starting to narrow as CFOs take on greater strategic importance.

Why it matters: - Guerdon Associates says the CEO-to-CFO pay gap across ASX 100 companies is narrowing. - The shift could affect how boards set executive pay and design incentives. - Guerdon Associates warns that boards should watch the gap closely to avoid pay structures it describes as “narcissistic.”

What happened: - Guerdon Associates released new benchmarking of ASX 100 remuneration on August 10, 2026. - The analysis found CFOs received larger percentage pay increases than CEOs. - The firm says the historic 2:1 CEO-to-CFO pay ratio is starting to narrow. - In the ASX 100, CFOs saw a potential total pay increase of 8.0%, compared with 5.9% for CEOs. - In the ASX 20, median total remuneration rose 10.1% for CFOs and 3.6% for CEOs.

The details: - The average CFO now receives about 43.2% of a CEO’s pay, up from 42.7%. - Guerdon Associates says the rise reflects the growing strategic importance of the CFO role. - The firm says boards should keep CEO-to-CFO pay aligned with historical anchors to maintain governance integrity as incentive structures evolve. - Guerdon Associates says keeping the gap within a 2:1 ratio range would be fair for everyone. - The company says the report includes all of the data it found. - Guerdon Associates said it is available to help companies that think they may have a problem in this area. - The firm provides remuneration and governance services for companies across Australia and New Zealand. - The company’s services include executive and board remuneration, board evaluation and renewal, director evaluation and board governance consulting.

Between the lines: - Faster CFO pay growth suggests boards may be valuing finance leadership more heavily than before. - If boards respond by lifting CEO pay to preserve old ratios, the gap could widen again rather than stabilize. - The report points to a governance challenge, not just a compensation trend.

What's next: - Guerdon Associates expects boards to use the new benchmarking when reviewing executive pay frameworks. - Companies will likely face more scrutiny over whether CEO and CFO packages still fit historical norms. - The firm says the report’s full data is available for companies that want to examine their own pay structures.