Where you choose to build your career as a Chief Financial Officer (CFO) is more than just a backdrop. It’s a strategic decision that shapes your influence, growth potential and the opportunities you’ll encounter in the evolving financial landscape. 

With the financial services (FS) sector thriving on both coasts, New York and Los Angeles stand out as two prime markets for top-level finance professionals. Understanding the strengths of each city, from their compensation trends to their growth prospects, will help you determine where you can make the biggest impact as a CFO. 

CFO compensation in NY vs. LA: How much does geography matter? 

One of the most immediate considerations for any CFO is compensation. As of October 2024, the average range of CFO salaries is between: 

• $393,369 and $673,102 in New York
• $375,182 and $641,983 in Los Angeles

While NY takes a narrow lead, the difference could translate into significant earning potential over the course of your career. Especially with the added bonuses and equity packages typically offered by FS firms in the city.

But it’s worth considering the cost of living. The Big Apple remains one of the most expensive cities in the world, with housing, transportation and general expenses making New York 54% more expensive than Los Angeles.

LA offers more affordable housing options, especially in the suburbs, so it might be the more attractive option if you’re balancing family life with a demanding career.

Benefits beyond salary

Of course, it’s not just salary you have to think about.

• NY firms offer larger equity stakes, especially in large public companies, hedge funds and private equity firms. Equity packages are often structured as long-term incentive plans (LTIPs), which can amount to 30-50% of total compensation
• Equity percentages tend to be smaller in LA, especially in mid-sized firms. Startups, however, offer significant stock options to attract top talent in growth sectors like fintech.
• NY flaunts hefty performance-driven incentives, with bonuses constituting 50-100% of base salary depending on the firm and sector. Bonuses are lower in LA and linked to specific project outcomes. But in larger firms, bonuses can reach similar levels to NY.
• Housing allowances are less common in LA compared to NY. While things like private healthcare and comprehensive retirement plans are standard in both cities, LA has a greater focus on wellness perks – such as gym memberships, mental health support and flexible work arrangements.

What are a CFO’s growth prospects in either city?

According to recent projections, CFO job growth across the US is expected to rise 6% by 2028, so the demand for this talent isn’t slowing down any time soon. With both NY and LA ranked within the top 10 most popular cities for CFOs, you’re in a good position to leverage the growing opportunities these financial hubs have to offer.

New York’s reputation as the global epicenter of FS is undisputed. With Wall Street at its core, NY continues to be a magnet for CFO talent. The sheer concentration of financial institutions in the city offers unmatched opportunities for networking, career advancement and lateral moves within the sector.

However, Los Angeles is swiftly becoming a contender in its own right. As the entertainment and tech capital of the world, its FS sector is booming. LA firms increasingly require sophisticated financial strategies, fueling demand for CFOs with experience in corporate finance, mergers and acquisitions, and growth strategy.

LA is also the home to a burgeoning fintech ecosystem, ideal for forward-thinking CFOs eager to drive innovation in financial services.

Industry trends CFOs need to be aware of in New York & Los Angeles

To understand which city might offer the best prospects for your career, it’s crucial to look at the broader market trends shaping the FS industry.

New York: Navigating transformations in traditional financial institutions

In NY, there is a strong emphasis on traditional financial institutions like investment banks, hedge funds and asset management firms.

But even these established players are evolving, shaped by regulatory changes, advancements in artificial intelligence (AI) and the rise of ESG investing.

New York-based CFOs will need to be on the cutting edge of these trends, showing organizations that they can lead them through complex transformations.

Los Angeles: Seizing opportunities in fintech

LA’s growing fintech sector is changing the game for CFOs.

As the demand for leaders who can navigate the integration of blockchain, digital assets and AI-driven financial modeling grows, forward-thinking CFOs have a unique opportunity to differentiate themselves through technological expertise and strategic leadership.

Showing an entrepreneurial spirit and interest in fintech ultimately gives you a competitive advantage in a fierce talent landscape. In this context, LA’s penchant for innovation makes it the perfect ecosystem for career growth.

Which city is right for you?

Ultimately, the choice between New York and Los Angeles comes down to your professional goals, personal values and where you see yourself making the biggest impact.

Choose New York if you’re drawn to traditional finance, want access to a vast network of industry leaders and are motivated by the prestige and higher earning potential that come with working in the world’s financial capital.

Choose Los Angeles if you want to be part of an emerging financial hub with a focus on tech, entertainment and innovation. LA offers a growing market with the promise of both professional advancement and a more balanced lifestyle.

At Hanover, we specialize in helping CFOs make strategic career moves in both New York and Los Angeles, guiding them to the roles that best align with their expertise and goals. We also help FS firms attract the right leadership in these competitive markets, ensuring that they thrive with the best financial expertise at the helm.

Contact us today to learn more about how we can support you.