In 2024, global CFO turnover reached 15.1%, surpassing the six-year average and highlighting a growing challenge for boards, private equity investors, and senior finance leaders. At the same time, the UK has experienced a sharp rise in fractional and interim CFO appointments, with over 110,000 professionals now referencing fractional leadership roles - up from just 2,000 in 2022.
For private equity and venture capital-backed businesses, these two trends are often intertwined.
The modern CFO role has expanded well beyond traditional financial stewardship. Today’s finance leaders must drive:
With heightened pressure comes shorter tenures, now averaging under six years globally. Burnout, shifting skill requirements, and the growing appeal of fractional work are key factors.
This constant change at the top creates a ripple effect throughout the finance function. Financial Controllers and Finance Directors often find themselves navigating multiple CFO transitions, each bringing a new vision, priorities, and strategies. This can disrupt not only the finance team’s continuity but also the broader business strategy, creating uncertainty and additional workload for those in supporting roles.
Fractional CFOs were once considered a temporary fix. Today, they are increasingly used as a strategic tool for:
While fractional CFOs often bring extensive experience, their limited availability (often just a few days a week) can leave FCs and FDs carrying heavier operational loads without consistent mentorship or support. This dynamic can delay their development into future CFO roles and, in some cases, create what could now be described as an “FD crunch.”
Is the rise in fractional leadership driving higher turnover? Or is it a response to it? The answer is likely both.
In PE/VC-backed firms, where investment cycles often dictate headcount, fractional roles act as a “pressure valve.” However, without proper succession planning, they can also create a vacuum beneath them.
To avoid the CFO crunch cascading into an FD and Controller crunch, businesses should:
These actions help maintain team stability, protect institutional knowledge, and prepare the next generation of finance leaders.
For CFOs and Finance Directors:
For boards and investors:
CFO turnover is rising, and fractional leadership is both a symptom and a solution. For PE/VC-backed businesses, the key is knowing when and how to leverage this model for maximum impact.
However, without careful planning, the CFO crunch risks cascading down into a Finance Director and Controller crunch, where high expectations and low support hinder the next generation of finance leaders.
As finance leadership becomes more fluid, businesses that treat talent as a strategic, adaptable asset and support those stepping up beneath the C-suite will win.
Whether you need to hire a permanent or interim CFO, or want guidance on team retention and succession planning, I can help you navigate this critical phase. I specialise in connecting PE and VC-backed technology businesses with the right finance leaders, while also advising on how to retain and develop the talent already in place.
If you’re planning your next finance hire or rethinking your team’s structure, let’s have a conversation: jodie.robieson@goodmanmasson.com
In 2024, global CFO turnover reached 15.1%, surpassing the six-year average and highlighting a growing challenge for boards, private equity investors, and senior finance leaders.
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