Episode Transcript
[00:00:00] Speaker A: Welcome back to Do You Need a CFO?, a podcast series from Rankin McKenzie. In our last episode, we explored how to define the CFO role for your company.
Today we're asking an even bigger question: can your business actually attract and afford a great CFO?
As always, a quick disclosure: this is an AI dramatization based on the free executive resources available at rankinmckenzie.com. The voices are synthetic, but the insights are drawn directly from the hiring expertise of Rankin McKenzie's team of CFOs.
[00:00:35] Speaker B: This is where a lot of mid-sized businesses get stuck. They know they need CFO-level leadership, but they wonder: are we big enough to attract top talent? And if we do, can we afford the compensation package it takes?
[00:00:48] Speaker A: Those are the right questions, because hiring a CFO isn’t just about salary. It’s about career risk, vision, and the overall package you present.
Let’s break this down into three parts: affordability, attractiveness, and creative ways to close the gap.
Let’s start with affordability. The numbers are clear. According to national benchmarks, the median base salary for CFOs in the U.S. is about $362,000 per year. For companies generating $50 million or more in revenue, that number is realistic. For companies in the $10 to $50 million range, CFO salaries typically fall between $250,000 and $275,000.
[00:01:31] Speaker B: That’s a big number. And remember, that’s base salary. Add bonuses, benefits, and sometimes equity, and the total package can climb significantly higher. For top-tier talent, $400,000-plus is common.
[00:01:43] Speaker A: And it varies by industry. In manufacturing or distribution, compensation may skew lower because the talent pool is wider and the role is more operational. In SaaS or biotech, where knowledge is rare, salaries trend higher—sometimes well above the national averages.
Geography also matters. A CFO in San Francisco or New York will command more than one in Raleigh or St. Louis.
[00:02:10] Speaker B: So companies need to benchmark not just by revenue, but also by industry and location. Otherwise, you risk setting unrealistic expectations—either offering too little and missing candidates, or overspending when you don’t need to.
[00:02:23] Speaker A: Exactly. Which means if your company is generating less than $50 million in revenue, paying a full-time CFO at those levels can feel like a stretch. That’s one reason fractional CFOs exist: so businesses can get access to senior-level expertise without taking on the full salary burden too early.
But compensation is only half the story. The other half is attractiveness. Even if you can write the check, can you convince a great CFO to join your company?
[00:02:52] Speaker B: That’s where career risk comes in. For a senior executive, joining a smaller or less established company can feel risky compared to staying in a stable, well-known firm. The risk isn’t just about salary. It’s about whether the business can sustain growth, handle challenges, and provide a platform that enhances their career.
[00:03:10] Speaker A: I’ve seen CFO candidates turn down offers from promising mid-market firms simply because they didn’t see enough board support or governance in place. They worried that if the company stumbled, they’d be left holding the bag.
[00:03:22] Speaker B: And on the flip side, I’ve seen candidates take the leap when the vision was strong enough. One CFO left a Fortune 100 role to join a $20 million company because the founders showed a clear five-year growth plan and offered equity tied to that trajectory. The risk was real, but the upside was compelling.
[00:03:39] Speaker A: That’s the key. Great CFOs are attracted to impact. If you can demonstrate stability, a growth story, and leadership alignment, you reduce perceived risk and make the opportunity compelling.
Now let’s talk about creative levers. Salary isn’t the only tool. Equity grants are common, especially in startups or businesses preparing for growth events. A few points of equity can make the difference between “maybe” and “yes.” Bonuses tied to performance also align incentives and sweeten the package.
[00:04:13] Speaker B: Here’s an example: a healthcare services firm couldn’t match the candidate’s prior salary dollar-for-dollar, but they offered a structured bonus tied to EBITDA growth and a small equity stake. Within two years, the CFO’s compensation actually exceeded what they’d been making before—and the company got a leader fully invested in driving growth.
[00:04:33] Speaker A: That’s a win-win. And don’t underestimate non-monetary levers. CFOs often care deeply about influence and access. The promise of working directly with the CEO and board, having a voice in strategy, and shaping the company’s future can matter just as much as pay.
[00:04:50] Speaker B: Culture is another differentiator. Some CFOs are drawn to entrepreneurial energy where they can build systems from the ground up. Others prefer established companies with stability. Knowing your culture and selling it authentically is part of making the role attractive.
[00:05:05] Speaker A: So what should a CEO ask themselves when considering this question?
First, do we have the financial capacity to offer a competitive package?
Second, are we presenting a vision that reduces career risk for the candidate?
And third, are we prepared to use bonuses, equity, or culture to close the gap if salary alone isn’t enough?
[00:05:25] Speaker B: And here’s the truth: if your business isn’t ready or simply can’t offer those things, then a fractional CFO may be the best—or even the only—way for you to access top talent. Fractional models let you tap into that same strategic expertise without the full-time price tag or the need to compete head-to-head with Fortune 500 compensation packages.
[00:05:47] Speaker A: Let’s recap.
Affordability: CFO salaries typically range from $250,000 to $362,000-plus, with industry and geography shaping the numbers.
Attractiveness: you must reduce career risk and sell your vision.
Creative levers: equity, bonuses, culture, and influence can all help you land top talent.
If you’re not yet in a position to offer these, fractional CFOs exist to give you access to that expertise without breaking your budget.
[00:06:21] Speaker B: The bottom line is: great CFOs aren’t only attracted by money, they’re attracted by opportunity. If you can offer a platform where they can make an impact and grow their career, you can compete for talent even against larger firms. And if you can’t, fractional CFOs are a powerful way to still bring that leadership into your business.
[00:06:42] Speaker A: That’s it for episode five of Do You Need a CFO? Thanks for joining us as we explored what it really takes to attract and afford great financial leadership.
[00:06:52] Speaker B: And remember, this episode was an AI dramatization based on the free executive resources at rankinmckenzie.com. Visit rankinmckenzie.com/resources to access those insights yourself.
[00:07:05] Speaker A: Thanks for listening.
