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Compensation of Chief Financial Officers – Mid-Market Montreal (2025) | Field Insights & 2026 Outlook

Good day,

For several months now, the prevailing narrative has suggested widespread salary inflation among Chief Financial Officers.
Our field data—drawn from hundreds of real conversations—tells a more nuanced story, and more importantly, one that is far more useful for CEOs and boards of directors.
Below is a structured read of the 2025 market, tailored to the Greater Montreal mid-market, along with what we anticipate for 2026.

By Eric Audet, CPA

President – Cielo | Exclusive Representative, AAFA – Greater Montreal



Our Methodology (Ensuring Credibility)

At Cielo, we analyzed an aggregated sample of finance leaders we met over an 18-month period (2024–2025):

• Chief Financial Officers / VP Finance: a typical sample of about 100 profiles
• Finance Directors: a typical sample of nearly 200 profiles

Anonymized and aggregated internal data, cross-referenced with credible sources: Statistics Canada (NOC 10010), Institut de la statistique du Québec (ISQ), CFO.com / Rho, FEI, McKinsey.
These sources frame the macro view. Our added value lies in on-the-ground insights: mandate, governance, human context, and level of risk.

The “Mid-Market” Scope (3 Simple Tiers)

To avoid unclear comparisons, we use a consistent Canada / Quebec definition:

Structured SME: $20M to $75M

Advanced mid-market / PE-backed: $75M to $250M

Structured private groups: $250M to $800M

(excluding public large caps and mega caps)

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The Real Key to Understanding: Context (3 Situations)

 

Compensation is driven first by the mandate, then by company size.

A. Stable organization

Moderate growth, established governance, limited transaction activity.
Priority: rigor, predictability, continuity.

 

B. Growth organization

Scaling phase, pressure on cash / systems / teams, potential acquisitions.
Priority: execution + transformation.

 

C. Pre-transaction organization

24–36 month horizon, PE / family office / succession / carve-out.
Priority: value creation, control, financial narrative, risk management.

Observed Base Salary Ranges (CAD) – Chief Financial Officer / CFO (2025)

Annual Bonus (Short-Term Incentive – Cash)

Context                       Observed Range

Stable                           15–25 %

Growth                        20–35 %

Pre-transaction       30–50 %

Key trend: Bonuses are now more measurable than pre-2022.
KPIs are consistently anchored in the same fundamentals: EBITDA, cash flow, net debt, and post-acquisition integration.

LTIP / Long-Term Incentives (3 to 5 years)

Context | Dominant Structure

Stable | LTIP: deferred cash / phantom
Growth | Hybrid LTIP
Pre-transaction | Real equity / sweet equity

Common benchmarks:

• Target value: 20–50% of base salary
• Equity (mid-market): 0.5% to 2%
• Horizon: 3–5 years | Cliff: 12 months

 

2026 outlook:After two years where cash compensation was favored, equity is becoming a more prominent lever again—especially when a credible transaction horizon is in place.

Executive Benefits (Market Constants)

  • Vehicle / allowance: $10–15K / year
  • Executive insurance: $6–12K / year
  • RRSP / retirement plan: 4–9%
  • Coaching / training: becoming a standard for top finance roles (#1 finance), depending on context
 

What we expect for 2026 (Clear & Actionable)

What Public Data Shows

Salaries: largely plateauing
Bonus / LTIP: preferred compensation levers
Equity: gradually returning as a meaningful component

 

What Cielo Field Data Confirms

• Many profiles accept flat base compensation if the mandate is clear, governance is healthy, and they have real decision-making latitude
• Upward salary pressure will remain selective, not systemic
• The “premium” is concentrated in specific contexts: transformation, transactions, complexity, and special situations

Key message for a CEO or board of directors

A strong CFO package in 2025–2026 is not necessarily “higher.”
It is better aligned with the real context of the mandate, the level of risk, and the expected impact.

That’s exactly where Cielo creates value: understanding the context, calibrating risk, structuring the package, and securing the right match.

If you’d like to validate a package or position a CFO / VP Finance role, I remain available.

 

Eric Audet, CPA
President – Cielo | Exclusive Representative, AAFA – Greater Montreal