How to Hire a CFO: A Guide for UK Companies

Hiring a CFO is one of the appointments where the gap between what a business thinks it needs and what it actually needs is often widest. The role has moved a long way over the past two decades — from a back-office reporting function to a strategic seat at the executive table — and the candidate market has moved with it. The CFO of a £30m owner-managed business is doing a fundamentally different job from the CFO of a £300m private equity-backed group, and the candidate who is right for one is rarely right for the other. Boards approaching their first CFO appointment, or refreshing the role after several years, get better outcomes when they work out what the CFO is actually for before the search begins, not halfway through it.

This guide is written for chairs, CEOs, founders and shareholders working through a CFO hire at a UK business. It covers when a business genuinely needs a CFO (and when a finance director is the better answer), what the role covers, the choice between permanent, interim and fractional appointments, where candidates come from, how a search should run, what drives the package, and the extra steps for FCA-regulated firms. If you already know you need to hire, our CFO recruitment team can talk through the brief with you.

When does a business need a CFO?

Not every business needs a CFO. Many UK companies run well for years with a finance director, a financial controller or an outsourced finance function, and the decision to move finance leadership up to CFO level should be deliberate rather than aspirational. The question is not whether the business could benefit from a CFO — almost any business could — but whether its size, complexity and direction justify the cost and the seat. Five triggers usually signal that the move is warranted.

• Scale and complexity. Revenue well into eight figures, a multi-entity or multi-jurisdiction structure, material bank or institutional funding, and growing customer or market complexity. At this point the finance function needs strategic leadership, not just accurate reporting.
• Changes to investors or capital structure. Private equity investment, a larger debt facility, preparation for sale or listing, or a group restructuring. Each brings reporting, covenant and strategic finance demands that go beyond a typical finance director’s remit.
• Strategic transition. Acquisitions, international expansion, major capital allocation decisions or a change in business model. The CFO becomes the CEO’s partner on these decisions in a way a finance director usually is not.
• Regulatory or audit demands. Regulated firms where the finance lead holds a senior manager function, businesses facing their first statutory audit, or companies with complex tax or accounting treatment all need senior finance judgement close to the board.
• Rebuilding after a problem. Businesses that have suffered control failures, fraud, misstatement or regulatory action usually need a senior finance leader to restore credibility with auditors, lenders and investors.

Where none of these applies, a finance director or financial controller is often the right hire. The boundary between FD and CFO is real but practical: the CFO is more strategic and usually sits on the board; the FD is more operational and may not. Our guide to when a firm needs a CFO and when it needs a finance director covers the distinction in more detail, and our finance director recruitment service handles the FD-level hire when that is the better fit.

What the CFO actually does

The modern UK CFO role covers four substantive areas. The proportions vary with company stage and ownership, but a credible candidate needs to be strong in all four.

The integrity of financial reporting and control. The foundation of the role: the books are accurate, the controls work, the audit goes well and the reporting to internal and external stakeholders can be relied on. This is the part of the job that least tolerates failure. A CFO who offers strategic insight but cannot keep the control framework intact rarely lasts.

Strategic financial leadership. Capital allocation, investment appraisal, pricing, working capital, cash forecasting and the modelling behind major decisions. The CFO is the executive most directly accountable for whether the financial strategy creates or destroys value over time.

Stakeholder relationships. The audit committee, external auditors, banks and lenders, investors or private equity sponsors, and regulators where relevant. The CFO is usually the main point of contact with each of these on financial matters, and the relationships need to be managed actively rather than when something goes wrong.

Executive contribution. CFOs sit on the executive committee and usually the board, and contribute to decisions beyond finance — strategy, M&A, organisation design and leadership team composition. Strong CFOs become the CEO’s most trusted strategic partner; weaker ones stay inside their functional silo.

The balance shifts by business. CFOs at private equity-backed companies spend more time on capital structure, transactions and investor reporting. CFOs at growth-stage companies spend more on modelling and fundraising. CFOs at regulated firms spend more on regulatory reporting, capital and audit committee work. Writing these priorities into a clear CFO job description before the search opens is one of the simplest ways to improve the shortlist.

Permanent, interim, fractional or part-time?

Before deciding who to hire, decide how. A permanent CFO is the right answer when the business needs a full-time finance leader for the long term and can carry the cost. It is not the only answer, and choosing the wrong model is a common reason CFO hires disappoint.

• Interim. A full-time CFO on a fixed-term basis, usually engaged through a limited company on a day rate. An interim CFO fits when the incumbent has left suddenly, a transaction or refinancing needs dedicated leadership, or a turnaround needs someone in post quickly while the permanent search runs.
• Fractional. A senior CFO working a set number of days each month across a small number of clients. A fractional CFO suits scaling businesses that need strategic finance leadership, investor credibility and board-level input but not a full-time seat.
• Part-time. Similar to fractional but often a more fixed commitment, such as two or three days every week, sometimes on an employed basis. A part-time CFO works well where there is steady, predictable demand that falls short of a full-time role.

Many businesses move along this range as they grow: a fractional CFO through a funding round, an interim during a transaction, then a permanent appointment once the business can justify one. Our sister firm FD Capital, also part of FD Capital Group, specialises in fractional and interim FD and CFO roles for SMEs, and we work alongside it where that is the better fit for the client.

The CFO candidate pool

The UK CFO candidate market is broader than for most C-suite roles, and the same five pools come up again and again. A good search maps all of them rather than relying on whoever happens to be on the market.

Sitting CFOs at comparable businesses. The most obvious pool: people already doing the job at a business of similar size, complexity and ownership. They have shown they can do it. The challenge is that the strongest are rarely looking, so the approach has to come through a direct, discreet conversation rather than an advert.

Finance leaders one level down at larger businesses. The natural step-up pool — divisional CFOs, deputy CFOs, heads of FP&A or group financial controllers at substantially bigger organisations. Their current role does not carry the CFO title, but their scope justifies it at a smaller business. Searches in this pool need to work hard on referencing, because the candidate has not yet held the top seat.

Former audit and advisory professionals. Senior audit or transaction services staff who moved into industry. The technical grounding is strong, but check that the candidate has made the real shift from advising to operating — running a team, owning a forecast and making commercial calls — rather than simply changing employer.

Private equity portfolio CFOs. Candidates who have run finance through one or more ownership cycles, including transaction support, monthly investor reporting, refinancing and exit preparation. They bring specific credibility to sponsor-backed businesses, and the pool is tight. Our portfolio company CFO recruitment work focuses on this group.

CFOs from regulated sectors. Where the business is regulated — financial services, healthcare, energy, utilities — candidates who have run finance under similar oversight bring relevant experience. For FCA-regulated firms, prior senior manager approval in a finance role is one of the most useful credentials a candidate can bring.

For more on how to identify and approach candidates in each pool, see our guide to CFO executive search strategies.

The CFO search process

A well-run permanent CFO search has six stages, each of which needs to be done deliberately. From brief to start date, a permanent appointment commonly takes several months once notice periods are included, and longer where regulatory approval is needed. Interim and fractional appointments move much faster because the candidates are usually available at short notice.

1. The brief. The chair, CEO and any investors agree the role, the candidate profile, the reporting lines, the package range and the timetable. CFO specifications that drift during the search — criteria added, dropped or re-weighted — are a sign the brief was not settled at the start, and the strongest candidates tend to withdraw when they sense it.

2. Market mapping and approach. Structured mapping across the relevant pools, named candidate identification and discreet approaches. This is where the real shape of the market appears: which pools are rich, where the gaps are, and who is genuinely open to a conversation.

3. Shortlist. The strongest candidates are interviewed in depth and assessed against the brief. A CFO shortlist usually runs to a handful of candidates who could each do the job, with a clear account of how they differ.

4. Client interviews and assessment. The shortlist meets the CEO, chair, audit committee chair where there is one, and major shareholders or sponsors. Good CFO assessment tests three things: technical depth (reporting, audit, capital structure, transactions), strategic capability, and the ability to manage boards, lenders and investors. A case study built on the business’s own numbers often tells you more than another round of interviews.

5. Referencing, selection and offer. Thorough references — including people the candidate has reported to at board level — then the offer and negotiation. In private equity-backed businesses, the equity element needs to be worked through early rather than bolted on at the end.

6. Notice and onboarding. Senior finance notice periods are often three to six months. Use the time to prepare introductions to the auditors, banks and audit committee, and to agree the first hundred days. Our executive onboarding guide covers this stage.

What drives CFO pay

UK CFO remuneration has the same components as any C-suite package — base salary, annual bonus, long-term incentives and benefits — but the levels and the mix vary widely. Rather than relying on a single headline number, it is more useful to understand what moves the package.

• Size and complexity. Revenue, number of entities and jurisdictions, and the funding structure are the biggest drivers of base salary.
• Ownership. Founder and family-owned businesses may not offer equity at all. Private equity-backed businesses typically offer sweet equity or management shares, which can be the largest part of the long-term reward. Listed companies operate within shareholder-approved remuneration policies.
• Situation. A transaction, turnaround or exit within a defined period usually commands a premium and a heavier weighting towards incentives tied to the outcome.
• Location and working pattern. London roles generally pay more, and hybrid or remote arrangements are now part of most negotiations.
• Regulatory accountability. Roles carrying a senior manager function at a regulated firm bring personal accountability, which candidates price in.

When budgeting for a permanent hire, remember the cost to the business is more than the salary. Employer National Insurance rose to 15% on earnings above £5,000 a year from 6 April 2025, as confirmed in HMRC’s April 2025 Employer Bulletin, and pension contributions, benefits and bonus all sit on top. For current market ranges, see our salary guide for chief financial officers.

CFO appointments at FCA-regulated firms

At banks, insurers and the larger FCA solo-regulated firms in the Enhanced tier, the CFO usually holds the Chief Finance function, SMF2, under the Senior Managers and Certification Regime. At smaller Core firms, a finance lead who sits on the board is more often approved as SMF3 (Executive Director). Either way, the regulator must approve the individual before they perform the role, and the firm must assess them as fit and proper, obtain regulatory references and prepare a Statement of Responsibilities.

The regime is changing. The FCA’s first phase of reforms, set out in PS26/6, mostly took effect on 24 April 2026 and streamlines parts of the process. HM Treasury’s consultation response on reforming SM&CR confirms a second phase needing primary legislation, including fewer roles requiring pre-approval. Until that legislation is in force, plan on the current approval process applying to finance senior managers.

The practical point for boards is timing. Approval runs on top of the search and the notice period, and an incomplete application slows everything down. Build it into the plan from the brief, and consider an interim to cover the gap. Our guide to hiring an SMF2-approved CFO for a regulated firm covers the detail.

Common CFO search pitfalls

The same mistakes recur in CFO searches, and each can be avoided with some planning. Our article on common CFO hiring mistakes and how to avoid them goes into more depth; the main ones are below.

• Confusing the CFO and FD specifications. A CFO brief for what is really a finance director role, or the reverse, attracts the wrong candidates. Settle which role is genuinely needed before the search opens.
• Ignoring the audit committee relationship. Where there is an audit committee, the CFO works closely with its chair. The UK Corporate Governance Code sets the expectations for listed companies, and strong candidates will probe this relationship carefully.
• Leaving equity to the end. In private equity-backed businesses, sweet equity is often the most valuable part of the package. Raising it late in the offer stage is a common reason preferred candidates walk away.
• Underestimating regulatory timing. Regulated firms that do not plan for senior manager approval risk a gap in a required function or a compromise on the candidate.
• Hiring a copy of the last CFO. The business has moved on since the previous appointment. Specify what it needs from the next CFO, not what the last one looked like.
• Running the process too slowly. Good CFO candidates usually have options. Long gaps between interview rounds lose them.

How Exec Capital approaches CFO mandates

Exec Capital is an executive search firm covering C-suite and board appointments. CFO searches sit at the centre of that work, often alongside a CEO, COO or chair appointment where a business is rebuilding its leadership team. Every search is run by our specialist team, with Adrian Lawrence FCA — a Chartered Accountant and former listed-company finance director — overseeing each mandate. That finance background shapes how we assess candidates: we test technical depth and judgement, not just CV keywords.

We start with the brief, and will tell you if we think a finance director, an interim or a fractional CFO would serve the business better than a permanent CFO. We map the market across all five pools, approach candidates directly and discreetly, and present a shortlist with a clear view of each candidate’s strengths and risks. We stay involved through referencing, offer, notice and the regulatory approval process where it applies. For SME clients whose need is fractional or interim finance leadership, our sister firm FD Capital may be the better route, and we will say so.

Frequently asked questions

How long does it take to hire a CFO?

For a permanent appointment, expect several months from brief to start date once notice periods are included. Interim and fractional CFOs can often start within weeks. Regulated firms should add time for senior manager approval.

What is the difference between a CFO and a finance director?

The CFO is the more strategic role, usually on the board and closely involved in capital structure, investors and major decisions. A finance director is typically more operational, running reporting, controls and the finance team.

Should we hire a fractional CFO first?

Often, yes, for scaling businesses that need senior finance input but not a full-time seat. A fractional CFO can lead a funding round or tighten reporting, and help define the permanent role when the time comes.

Does our CFO need FCA approval?

If your firm is FCA or PRA regulated and the CFO will hold a senior manager function, such as SMF2 or SMF3, the regulator must approve them before they start performing that role.

What should we look for in a first-time CFO?

Look for evidence of operating at the level above their current title: owning a forecast, presenting to a board or lender, leading a transaction or a systems change. Thorough references from people they have reported to matter more than usual.