The CFO Centre UK’s Post

Rapidly rising wages for finance chiefs has demonstrated their growing importance within the C-suite and the increasingly demanding nature of the job - an interesting read on the recognition and value being placed on an experienced CFO. Do you agree with the methods for retaining and keeping your c-suite engaged? What more could businesses do to retain their top talent? #grgexecutivesearch #execsearch #csuite #cfo #fridaythoughts

“Rapidly rising wages for finance chiefs has demonstrated their growing importance within the C-suite and the increasingly demanding nature of the job. Finance chiefs have become a critical extension of the CEO, which is why their value has grown in the eyes of the board and why they’re seen as the most capable successors. Indeed, 15% of current FTSE 100 chief executives stepped up directly from a CFO position last year, according to data from executive search firm Heidrick & Struggles. Loyal finance chiefs who stayed to steer companies through the pandemic are now leaving their jobs, opting for early retirement, bigger salaries or stepping into the CEO role.” Interesting article that discusses: - CFO wages are increasing - CFOs are in high demand and short supply - Bridging the US pay gap - Is higher pay an effective strategy? - How to attract and incentivise CFOs #aqilla #cloudaccountingsoftware #cfo #futureoffinance

Here are the latest insights on CFO pay trends in CPA Australia's enlightening article🌟.  Here’s a breakdown of key CFO salary trends. Credit to #InTheBlack for this valuable read.  https://bit.ly/3wDnd3U #FinanceTrends #CPAAustralia #cpa #cpafirms #business #insights #finace #organisation #markettrends #BusinessInsights #AccSource AccSource Business Process Outsourcing | Boobalan Madhavan | Gorav Gupta | R. Badri Narayanan | Uma Mageswari Ramanan | Girinath Davey | Franklin Pereira | Apeksha Das | Chintan Shah

CFO turnover continued to rise in Q1! Stay informed about #financetips and #costaccounting to navigate the evolving landscape. Explore #growthpotential and #liquidity strategies to optimize your business's financial health. For more insights, visit us at www.cfosme.in #cfosme #costeffective #budget #finances #sharedcfoservices #funds #financing #business #growth #funding

Raconteur looks at the factors contributing to the escalating salaries of chief financial officers (CFOs). The evolving role of CFOs now extends beyond traditional financial responsibilities to encompass areas such as remote working and sustainability. The challenges and opportunities associated with the changing landscape for CFOs include the impact of technology, the correlation between politics and business sentiment, and the potential effects of new responsibilities on career stability. Additionally, understanding the business and building effective finance teams is crucial for CFOs to be successful in their roles. https://lnkd.in/dywMjhuK

How a growing business can hire the right CFO at the right price Many small businesses that have grown successfully (possibly without even having a dedicated finance function) reach a point at which they have investors willing to back them, but these investors want them to bring a CFO on board who can produce reliable investor grade monthly reporting and forecasts that are based on a model which can also be used to provide a 5-year financial forecast for strategic planning and fundraising purposes. This 5-year model can for example underpin discussions between the CEO and CFO on both commercial and strategic decision making, and can be flexed to reflect multiple scenarios – e.g. if you sign a fixed price contract with a client, but your staff costs are likely to increase annually, how will this impact your financial position in 5 years’ time under each plausible inflation scenario, and what could you do to mitigate the impact – e.g. build in inflationary increases into your contract?  Or if you cut prices to increase your sales and client acquisition rates, what will the overall 5-year impact be on your overall financial position, and how much additional funding will you need to do this in the short term? A good CFO should always be able to help the CEO improve the company’s long term financial position by considerably more than the CFO themselves costs the company. The concern that many smaller, but rapidly growing businesses have is that a CFO who can deliver this type of strategic and commercial input normally comes at a price and given the increasingly strategic and commercial nature of the CFO’s role, the price of a CFO has also risen over time (although one report suggested that a UK CFO only costs 25% of what an equivalent CFO in the US would cost)! A recent salary survey from Robert Half suggested that: ✅ a CFO with little or no experience would receive a basic salary (before bonus, etc.) of £125k per year ✅ an experienced CFO between £160-180k (£170k median salary in their survey) ✅ a top quartile CFO £205k+ (e.g. one with additional large company, IPO or exit experience, etc.) IE the type of CFO who would most likely join and add the most value to a high-growth, VC-backed, small to mid sized company would likely cost between 150k and 180k in basic salary. On the other hand, a smaller company might not have enough high level strategic and commercial activities to make optimal use of such a CFO. Although I would prefer a full time role, for a rapidly growing company I would be willing to consider accepting a part time role - e.g. £160k full time, £140k for 4 days a week, …, down to a min of £100k for 2 days a week. This lets the company gain the full benefit of the strategic and commercial insights, without having to commit to taking me on full time until their circumstances warrant this. In the meantime, I would be free to undertake other part time roles for the remainder of the week. #Entrepreneurship #Startups #VentureCapital

What CFOs Think of the Accountant Shortage! #cfosme #cfoservices #financeplanning #strategyexecution #strategyconsulting #financing #costeffective #fundamentals #growthpotential #cashflow #marketoutlook #sharedcfoservices #accounts #accounting #challenges Visit us at: www.cfosme.in

First-half turnover among CFOs at public companies worldwide took a bit of a leap in 2024 compared to recent years, with the proportion of outgoing finance chiefs reaching 8.9%. https://bit.ly/3MiN4Tj If your team is experiencing turnover in the finance function, contacts us to learn more about our Staff Augmentation or CFO Advisory Services: https://bit.ly/3WTLrQT

Thanks Nicholas Lane for sharing this interesting data. I want to expand this debate and as a fellow CFO looking for the next opportunity ask some questions around value. Ignoring VAT (lets assume revenue generating and can offset but including agents fees. 1) What would be a median CFO cost in the tech space for a £2-15m business be on a fractional base doing say 10 days a month? 2) If assume a perm CFO does 18 days a month what would be their cost including pension and NI Now what value do both of them bring to the CEO and Board? What pain do they reduce or conversely what pain do they create? What extra work could the CFO be doing in those 8 days? What about pro-rata part-time? We need to keep going back to value and fund raising is a critical part of it. Not popular necessarily with VC's but introductory fees for any successful fund raise can be significant- some come with retainers and some without. As CFO's as your slides 8-11 discussed we have a lot of value to bring. In my view the more difficult discussion comes around exit particularly for a CEO (and perhaps largest shareholder) with a great relationship with their CFO. Do they bring in a "seasoned deal person" to replace or enhance (advisory) during the deal phase?