Question 1

What is a CFO?

Accepted Answer

The title Chief Financial Officer refers to the highest-ranking finance professional/executive in the company. In many companies, the CFO is the VP Finance, but not always. In smaller companies, the CFO is often the Director of Finance if that is the highest-ranking finance person on staff.

Question 2

What is the difference between a Controller and a VP Finance?

Accepted Answer

The Controller position is essentially backward-looking. Among other things, a Controller will give you a financial snapshot of where you've been and where you are now. A VP Finance is essentially forward-looking. If a company has a plan to go from x to x + 50% in overall growth, a VP Finance will produce a financial plan that will help the company achieve those goals.

Question 3

What does a Director of Finance do?

Accepted Answer

A Director of Finance is an amalgam of a Controller and a VP Finance. Like a Controller, they oversee the day-to-day accounting function. Like a VP Finance, they advise the CEO and executive team on financial considerations associated with new initiatives, growth plans, and risk management.

Question 4

What does a VP Finance of a SME earn?

Accepted Answer

In major markets, the VP Finance of a $100mm in revenue company will earn about $250K in salary with a short-term bonus potential of about 25% to 30%. Companies much smaller in revenue will pay less and those companies much bigger will pay more.

Question 5

Are job boards effective in recruiting CFOs?

Accepted Answer

Job boards will give you access to the executives who are actively on the market. However, active candidates only comprise about 15% of all available candidates. The vast majority of potential CFO candidates are passively on the market.

Question 6

How do I benchmark CFO compensation?

Accepted Answer

The best way to benchmark executive compensation is to talk to fellow CEOs of similar companies to your own or an executive recruiter who specializes in companies of your size and industry.

Frequently Asked Questions (FAQs)

What is a CFO?

What is the difference between a Controller and a VP Finance?

What does a Director of Finance do?

What does a VP Finance of a SME earn?

What does a Controller of a SME earn?

What does a Director of Finance of a SME earn?

What's the difference between a placement agency and an executive search firm?

Do search firms guarantee their work?

How should I structure a bonus plan for my CFO?

Are job boards effective in recruiting CFOs?

How do I benchmark CFO compensation?

Is relevant industry experience important when hiring a CFO?