Two weeks ago I was a panelist for a CFO Roundtable luncheon meeting. Our topic was the general employment situation for CFOs. I have been a member of this group for a number of years, so I was well acquainted with my host and most of the guests. This was the first time I had met the two other panelists. One has been in business for 28 years focused mostly on recruiting for plant-level jobs. The other is a Partner and Founding Member of a firm focused on academic, not for profit, and some Fortune 500 searches. It was interesting to have their perspectives and for the most part we were pretty well aligned in our experience. There were some obvious differences, however, which made for a more interesting discussion.
The members of this CFO Roundtable Group are primarily employed by small to mid-cap concerns representing most industry segments. Their employers are PEG portfolio companies, emerging privately financed companies, and some family-owned businesses. There was no representation from a major public company, educational, or not for profit. One of the attendees is a recent placement and current client. Even though the focus of this Panel Discussion was on CFOs, it became evident that the issues for this group are relevant to all senior level executives.
The moderator kept the discussion focused and moving so as to accomplish as much as possible during the lunch hour. The broad topics were related to the ideal CFO candidate background; employer preferences to hire employed candidates vs. unemployed candidates; age discrimination; cultural fit; current CFO tenure; and the use of LinkedIn during job search. Undeniably, these areas are of great interest to CFOs currently in job search and for the rest who know they could be in the market at any time. It is interesting to know that all of these issues are closely interrelated. A bullet point recap of those topics and findings follows:
- A traditional background with experience in Big 4 Public Accounting is still preferred.
- Preferred hire is currently employed, ceterus peribus.
- LinkedIn is an important tool which may be growing in popularity with major Executive Search Firms.
- Tenures are shorter. The new normal is three to five years.
- Cultural fit is very important to both the client and the candidate.
- Age is an issue but not in every case.
During the Q&A there was a lot of discussion around corporate cultures. The issue was related to how the recruiter could be helpful in presenting the client culture, and how a candidate could go about learning more about their culture. The time spent on this topic is understandable as the members of the audience have enough experience to know that ensuring a good cultural fit at the beginning of employment is vital to minimizing the risk of a short tenure situation. Additionally, many have recent experience in difficult situations which they don’t want to repeat. We all agreed that helping the candidate, and ourselves, better understand the client’s culture is necessary for all parties concerned. It is not such an easy task, however, as so many companies are in a state of flux.
My take-away from the meeting, and the theme for my responses is that the recruiting criteria for CFOs in the small to mid-cap segment are highly dependent on the company’s situation. Employers are looking for specialists to help them with immediate priorities. When those priorities are met, or at a liquidity event, new priorities are established which may render the CFO expendable. One would need to build a matrix to catalogue the various attributes required of candidates for each particular situation. I will explore these issues in greater depth in the coming weeks.
To summarize, employers in the small to mid-cap segment are looking for CFOs to help them with immediate issues. They are looking for candidates with a traditional accounting track and prefer to hire someone who is currently employed. This is a preference, not a hard and fast rule. Tenures are shorter as the need for the particular talent is more specific and because a change of ownership will force the need for a change. Cultural fit is very important, but age is not as important if the candidate meets the hiring profile. The point for CFOs and all other C-level Executives is to identify ways that they can position themselves as a specialist.
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Jim Weber, President
New Century Dynamics Executive Search
www.newcenturydynamics.com