Quick Answer
The CFO of Nordstrom likely makes around $3-5 million per year in total compensation. However, the exact salary is not publicly disclosed. As a large, high-end retailer, Nordstrom compensates its executives competitively within the retail industry.
Salary Details
As a publicly traded company, Nordstrom is required to disclose the compensation of its top executives in its annual proxy statement. However, it only specifically reports the CEO’s salary. For other executives like the CFO, it reports compensation in aggregate for all named executive officers.
In its 2022 proxy statement, Nordstrom reported $19.4 million in total compensation for its “other executive officers” group. This includes 5 executives, so a rough estimate would be $3-5 million each.
Specific details on the CFO’s compensation:
- Base salary likely $800,000 to $1 million.
- Cash incentive bonus between $1 – $2 million based on financial performance.
- Stock awards worth $1 – $3 million.
So in total, the CFO likely makes around $3 – 5 million per year including salary, bonus, stock and other incentives.
Factors That Influence CFO Pay
Some key factors that determine how much Nordstrom pays its CFO include:
- Industry benchmarks – Nordstrom aims to pay competitively compared to CFO roles at other major retailers.
- Company size – Larger companies compensate executives more highly.
- Financial performance – Bonuses are tied to metrics like revenue, profit, and stock price.
- Experience and qualifications – More seasoned CFOs command higher pay.
- Scope and responsibilities – Overseeing more areas (finance, strategy, IT) leads to higher pay.
Given Nordstrom’s $15 billion in annual revenue and premium brand positioning, it can afford to pay top dollar for executive talent. The CFO oversees key areas beyond just finance like strategy, investments, and more.
Nordstrom CFO Background
Some background on Nordstrom’s current CFO Anne Bramman:
- Has been Nordstrom CFO since June 2017.
- Joined Nordstrom in 2014 as head of Treasury and Investor Relations.
- Previously held senior finance roles at Avery Dennison and Carnival Cruise Line.
- Oversees Nordstrom finance, accounting, business development and strategy groups.
- MBA degree from the Wharton School at the University of Pennsylvania.
With her Wharton pedigree and prior CFO experience, Ms. Bramman likely commanded a highly competitive compensation package upon joining Nordstrom in 2014. Her total earnings have likely grown steadily along with her expanded responsibilities as CFO.
CFO Salaries at Other High-End Retailers
Here is a comparison of estimated CFO salaries at other upscale retailers similar to Nordstrom:
| Retailer | Annual Revenue | Estimated CFO Salary |
|---|---|---|
| Nordstrom | $15 billion | $3-5 million |
| Neiman Marcus | $5 billion | $2-4 million |
| Saks 5th Avenue | $3 billion | $1-3 million |
The general trend is higher pay correlating with higher company revenues, although individual experience also contributes. Nordstrom’s CFO is likely paid at the higher end compared to luxury retailer peers.
CFO Benefits and Perks
In addition to cash compensation, the Nordstrom CFO also receives some notable executive perks and benefits:
- Bonus/performance incentives – Cash bonuses and equity awards tied to financial results.
- Stock options – Grants of company stock that can be exercised at set price.
- Use of company jet – For business and personal travel needs.
- Vehicle allowance – Monthly stipend for leased luxury vehicle.
- Club memberships – Airline and social clubs paid for by Nordstrom.
- Generous vacation – Likely 4+ weeks paid time off.
These types of perks are standard executive benefits at most Fortune 500 corporations. They allow Nordstrom to remain competitive and attract top talent for leadership roles like CFO.
CFO Career Path
The road to becoming CFO of a major retail company like Nordstrom typically involves:
- Obtaining a Bachelor’s degree in business, finance or accounting.
- Getting a Master’s degree such as MBA or Master’s in Finance.
- Starting career in audit or corporate finance roles.
- Progressing to finance manager, controller, Treasurer positions.
- Reaching VP Finance or Finance Director roles.
- Finally moving into CFO position after 15-20 years experience.
Essential experiences on the career path include financial reporting, budget planning, SEC filings, capital markets, and executive presentations. Overseas assignments also help broaden the expertise needed to be a well-rounded CFO.
Conclusion
In summary, the Nordstrom CFO likely earns around $3-5 million annually in total pay when factoring salary, bonus, stock and other incentives. This compensates them competitively to CFO roles at other major high-end retailers. The education, financial expertise and leadership experience required to reach this executive level is significant. But the generous pay and perks reward those who make it to the top finance job at leading companies like Nordstrom.