ON Partners Data Reveals Rising Importance of CFO Role, Driving Compensation Growth

CLEVELAND — ON Partners, a pure-play executive search firm focused on building diverse C-level and board leadership teams, announced that its internal data shows the Chief Financial Officer (CFO) role has seen a greater year-over-year increase in diverse hiring than other C-level positions, with 56% of CFOs placed by ON Partners being diverse executives. Additionally, the data indicates that despite the difficulty in filling this role, market demand remains strong, with total compensation for CFO positions rising over the past two years.

"There is strong interest in diverse CFOs, and overall demand for filling CFO roles is high," said Baillie Parker, Partner at ON Partners. "Companies are very eager to secure experienced, sitting CFOs who possess the knowledge base to accomplish the specific tasks at hand. This may mean finding a CFO who has led a 'buy-and-build' strategy or taken a company public. The number of CFOs with this specific expertise is limited, creating a supply-demand imbalance in the current talent pool."

In private equity (PE)-backed companies, staffing challenges have been a topic of ongoing discussion and concern. Historically, the CFO role has been one of the most complex responsibilities. According to a 2023 Censuswide survey, approximately 60% of surveyed CFOs indicated they have been in their current role for less than ten years. Today, due to a lack of CFO talent who understand how private capital and similar industries operate, investors are also insisting that executives filling these positions achieve established goals in a timely manner.

"Typically, PE-backed companies have a holding period of three to five years, and the CFO exits after a liquidity event," Baillie continued. "Candidates who have been involved in turnarounds often do not want to be typecast as 'turnaround specialists.' It is challenging work, so they may prefer to seek growth opportunities rather than find themselves in another temporary situation."

Regarding relocation for executive positions overall, ON Partners found that a total of 17% of leaders declined opportunities solely due to relocation constraints. This factor further narrows the selection pool, as some candidates are unwilling to relocate or travel frequently.

Whether candidates prefer remote work or seek long-term career development in the CFO role, the position has undoubtedly evolved, and the compensation rewards are attractive. ON Partners' data shows that the current average salary for CFO candidates has increased by 23% over the past two years.

"Companies are recognizing the critical role the CFO plays in the future state of the business," said Joe Olson, Partner at ON Partners. "Finance is crucial at any stage, and when CEOs or investors see the impact a strong CFO has on all key value drivers, cash compensation is easily justified. Additionally, the role is evolving; CFOs are now seen as strategic partners to the CEO, not just accountants. This is reflected in compensation, as competition for these experienced candidates is driving up total compensation packages, and clients are very aware of this."

According to a report from S&P Global Market Intelligence, CFOs now spend only 10% to 15% of their time on financial oversight.

To learn more about ON Partners' approach and current market trends in CFO executive placement, visithttps://onpartners.com/contact-executive-recruitment-agency/。

About ON Partners

Founded in 2006, ON Partners is the only pure-play executive search firm focused on building diverse C-level and board leadership teams. We have reinvented the executive search firm with a partner-led approach, providing tailored solutions and a smoother experience for every client, from the initial briefing to the final decision. ON Partners has been named one of America's best executive search firms by Forbes and has appeared on the Inc. 500/5000 list nine times, consistently ranking among the top 20 retained executive search firms in the U.S.