After a period of pandemic-driven volatility and ongoing economic uncertainty, a new breed of finance leader is rising through the corporate ranks—not in permanent corner offices, but on an as-needed basis. Demand for interim and fractional chief financial officers is surging, as companies look to steady the ship while navigating inflation, interest rate hikes, and succession planning, according to recruiters and consulting firms.
“It used to be a stopgap,” said Josh Glantz, a partner at recruiting firm Odgers Berndtson, referring to interim CFO roles. “Now it’s a strategic function.” Firms across industries—spanning startups, growth-stage ventures, and even established public companies—are capitalizing on on-demand executives to fill talent and leadership gaps in their finance departments.
The uptick comes as many seasoned finance chiefs opt for retirement or jump to other companies, leaving vacancies just as organizations face growing regulatory complexity and higher scrutiny from investors. U.S. companies announced more than 350 chief financial officer appointments in the first three months of this year, according to research firm ExecuNet, the highest number since 2020.
Historically, CFO roles were filled on a full-time, permanent basis. But the pandemic and its aftermath have altered the calculus. With many companies scaling operations up and down in response to shifting market conditions, a flexible, interim approach is increasingly attractive, say talent advisers.
Interim CFOs, often highly credentialed with big-company pedigrees, are parachuted in to stabilize teams, oversee turnarounds, or shepherd firms through key transactions such as IPOs and mergers. They’re also seen as critical during leadership transitions, setting up incoming permanent CFOs for success.
The increased appetite for finance leaders-for-hire has sparked a parallel rise in the market for on-demand talent platforms. Companies such as Tatum, Paro, and FTI Consulting report surging interest in interim placements from both corporations and would-be CFOs—many of whom are veteran finance leaders seeking portfolio careers or greater flexibility.
“The demand has never been stronger,” said Kirk McLaren, CEO of Foresight CFO, which places fractional CFOs at startups and midsize companies. “Organizations want access to someone with a depth of experience, but they’re hesitant to add a permanent headcount given the macroeconomic environment.”
Inflation and concerns over recession risk are adding to corporate wariness. With pressure to trim expenses, many companies are rethinking the composition of their finance teams and the scope of their leadership ranks, advisers say.
While the trend offers opportunities for experienced executives, it also comes with caveats. Some observers caution that interim or fractional CFOs may lack “skin in the game” without a long-term stake. Others argue that these finance pros often bring objectivity and a fresh perspective that’s hard to match in-house.
For CFOs considering such roles, the arrangements promise flexibility but also require adaptability. “You have to hit the ground running; there’s no honeymoon period,” said Christine Tao, a veteran finance leader who has served as interim CFO at several tech startups.
Industry insiders predict the demand for interim finance talent will persist, even as economic headwinds eventually ease. For businesses seeking to manage volatility and preserve optionality, the appeal of a veteran at the helm—albeit on a temporary basis—may prove too strategic to pass up.
