— ON Partners validates 56% of placed CFOs were diverse executives–
(CLEVELAND, OH.: October 16, 2023 – GlobeNewswire) – ON Partners, a pure-play retained executive search firm building diverse C-level and board leadership teams, announced that the Chief Financial Officer (CFO) role has seen the largest year-over-year increase in diversity hiring among all executive roles. According to internal data, 56% of CFOs placed by ON were diverse executives.
The firm’s analysis also reveals that while demand for CFOs continues to rise, the role has become increasingly difficult to fill. Compensation for CFO positions has also increased significantly over the past two years.
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High Demand Meets Limited Supply for CFO Talent
“The interest in experienced and diverse CFOs is extremely high,” said Baillie Parker, Partner at ON Partners. “Companies want sitting CFOs who have led buy-and-build strategies or taken companies public. However, only a limited number of executives have this level of experience, which drives up demand.”
In private equity-backed businesses especially, filling CFO roles remains a critical and complex challenge. A 2023 Censuswide survey found that 60% of CFOs have been in their current role for fewer than 10 years. As PE firms seek finance leaders who understand the dynamics of private capital, the talent pool continues to shrink.
Private Equity’s Unique CFO Requirements
“PE-backed companies often have a three-to-five-year hold, and CFOs usually exit after a liquidity event,” said Parker. “Many candidates who’ve been through a turnaround don’t want to be typecast as turnaround-only talent. They tend to prefer growth-focused roles instead.”
This preference adds another layer to the recruiting challenge. The demand for CFOs who can handle fast-paced environments while driving strategic initiatives is outpacing the available supply of qualified candidates.
Relocation Adds Another Recruiting Hurdle
ON Partners’ data also shows that 17% of executive candidates rejected roles due to relocation concerns. As remote and hybrid work preferences continue to grow, relocation is becoming a bigger barrier to executive hiring.
This constraint limits the available talent pool even further, particularly for CFO roles that require close collaboration with executive teams or on-site financial operations.
CFO Compensation on the Rise
Despite these challenges, CFO compensation continues to climb. ON Partners’ data shows a 23% increase in CFO average salary over the past two years. Companies are willing to pay a premium for strategic finance leaders who can help guide their organizations through change and growth.
“Companies now see CFOs as strategic partners to the CEO,” said Joe Olson, Partner at ON Partners. “They’re no longer just accountants. Their impact on growth, profitability, and investor confidence makes the compensation easy to justify.”
The CFO Role Is Evolving
Today’s CFOs are expected to do far more than oversee financial reporting. According to a report from S&P Global Market Intelligence, CFOs now spend only 10–15% of their time on traditional financial oversight. The rest is focused on strategy, forecasting, capital allocation, and cross-functional leadership.
This evolution explains both the surge in compensation and the heightened competition for qualified candidates. Businesses that want to attract and retain high-caliber CFOs must now offer both compelling compensation packages and meaningful strategic opportunities.
Learn more about ON’s approach and the current market trends for CFO executive placements.
Related articles include a recent press release showing public companies are leading the charge in diversity hiring practices and how the 2023 Talent Intelligence Report reframes mainstream views on executive hiring trends.
