With CFO turnover rates reachinga seven-year high, interim and fractional CFOs are once again in the spotlight. The "supply and demand" issues affecting the CFO landscape over the past few years—including an ongoing accounting talent shortage and rising retirement rates—mean more companies are considering different criteria to fill the top finance position, said Scott Moran, president of Sutker Moran.

"One of the current challenges is that more people are retiring from CFO roles than are entering them," said Moran, who has served as president since June 2017, in a joint interview with Managing Director Alan Samsky. "So there's an imbalance in supply and demand at the CFO level and in the talent associated with it."

A training ground for CFOs

Founded by Moran and partner Howard Sutker, this business consulting and CFO services provider aims to offer what Moran calls "full coverage" services to meet companies' needs at any given time.

"Our firm's approach is to use a team model to provide companies with the skill sets they need at their stage of development," he said.

This model comes as overall demand for interim talenthas surged in recent years, growing 310% since 2020, as CFO Dive previously reported citing an April report from Heidrick & Struggles' business talent group. Among this, demand for interim C-suite leadership has risen particularly, with interim CFO requests accounting for 51% of such requests.

"We see companies saying, I need a higher level of expertise, but I'm not necessarily willing to pay the full-time salary that comes with it," Moran said.

Samsky said the "team model" allows the firm to access a broader range of skills and experience. He joined the Chicago-based firm in July 2019 and has served as managing director for six years, according to his LinkedIn profile.

Because the platform "has CFO and controller experience, but also consulting backgrounds, when we see a company's financial performance starting to decline, we can pivot quickly," he said. The platform can then "leverage the many skills and experiences we have to help the company get back on track to sustainable profitability."

On the finance professional side, one factor that often attracts potential candidates to the firm is the "educational" experience these roles provide, the two executives said.

"We're often asked during recruiting and interviews: 'What mechanisms do you have to help me learn the skills to become a CFO?'" Moran said. "'What do you do on a weekly, monthly, and yearly basis?'"

Sharpening cutting-edge technology skills

Another factor influencing the growth of the fractional or interim CFO market is the ongoing evolution of AI. Over the past few years, the CFO role has expanded, with many finance leaders not only responsible for financial management and strategic driving but also taking on oversight of digital transformation.

Finance leaders are facing more questions about how to integrate AI into their businesses, so "the efficiency demands that emerged over the past 10 years have changed, and they will continue to evolve over the next 10 years," Moran said.

"This trend won't stop, so continuously understanding the available tools and how to apply them in the business—I think that's a new skill and a new need for CFOs," he said.