Data & Results – Q4 2022
2023 CFO Outlook: Weak Growth; Wages Trail Inflation
U.S. financial executives are generally pessimistic about next year’s economy, saying they expect price growth to subside some in 2023 but still remain high. They also report that wages at their firms have not kept pace with inflation.
Revisions to The CFO Survey Data
CFO Survey data from Q2 2020 to Q4 2023 have been revised in accordance with an annual revision process. Revised historical data are available for download. Comparisons of revised and previously published estimates are also available.
Historical special question results are unrevised and available on archived quarterly results pages.
For more information on the annual data revision process, please refer to The CFO Survey Methodology.
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Special Questions on Compensation Increases
The fourth quarter survey asked CFOs how their company annually adjusts employee compensation, including adjustments for the rate of inflation and/or the cost of living. Most companies reported including a cost-of-living adjustment in the wages they pay their own employees. Among companies that include an explicit cost-of-living adjustment to wages, this adjustment will average 3.3 percent, in addition to merit increases.
For additional discussion of these results, visit our Research & Commentary section.
On average, what percent annual increase in total compensation did (or will) your firm provide employees for the most recent compensation round? Mean (and Median) Percent Increases, by Type of Increase Merit Only
(N=74)Merit
(N=171)
Inflation Adjustment
(N=171)
Total (Merit + Inflation Adjustment)
(N=171)
Recent 4.3%
(4.0%)3.1%
(3.0%)3.3%
(3.0%)6.4%
(6.0%)Normal 3.5%
(3.0%)3.0%
(3.0%)1.6%
(2.0%)4.8%
(4.0%)Note: Data reflect responses from firms that indicated they provide annual increases in compensation (base of variable) to employees. For comparison, firms were also asked what percent annual increase in compensation would be considered normal, or line with the firm’s recent averages. Merit Only reflects responses from firms that do not incorporate inflation adjustments. Merit, Inflation Adjustment, and Total reflect responses from firms that incorporate inflation adjustments. Responses are unweighted and winsorized at 2.5% and 97.5% to remove the potential influence of extreme values.
Source: Duke University, FRB Richmond and FRB Atlanta, The CFO Survey – Q4 2022 (November 14 – December 2, 2022) -
Special Questions on Effects of Interest Rates on Spending
The fourth quarter survey asked CFOs whether the current level of interest rates was causing them to pull back on capital and non-capital spending plans. About two-thirds of CFOs report that current interest rates have not affected their capital expenditures or non-capital spending plans, while about 30 percent say that rates have already dampened spending plans.
For additional discussion of these results, visit our Research & Commentary section.
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