Recruiters Find Demand for Seasoned CFOs Rising

Demand for seasoned, skilled, top level financial executives is rising, according to staffing firms who contend the economy is presenting unique opportunities for CFOs. As companies still struggle through the stagnant economy they are increasingly hiring CFOs on an interim basis. At the same time, those that have been relying on interim CFOs but are experiencing growth, are now starting to move towards filling those positions permanently. “One thing that is somewhat predictable is that companies that eliminated the CFO role in 2008 or 2009 are hiring CFOs on an interim basis or a consultant basis and there’s now an increase in demand for CFOs in the consultant arena,” said Jodi Chavez, senior vice president at Ajilon Professional Staffing, in charge of the West Coast. The arrangement makes sense for businesses that need to rely on the expertise of a top level executive but can’t afford the heavy salary expense. “During the economic downturn, the services of an experienced CFO are very critical, more so than at any other time, but the challenge for small companies is the ability to pay and justify having a senior level executive with that skill set,” said Kenneth Kang, CFO of Partners in Care Foundation. Kang who while working as a consultant for Partners in Care, was brought onboard as a full-time CFO in April. “What many of my colleagues are doing is putting their expertise and skill set to use on behalf of companies that are being challenged – that have had to structure down but also need to be more strategic – and are working as consultants.” Kang previously served as vice president and CFO for Home Pharmacy of California, a company that was successfully sold to Walgreens, and decided to take a few years off in 2007. “I felt I had reached a point in my career, a lot of things came together for me and I was able to leverage that and be able to help companies that were in need of my skills and contacts but could not usually afford a CFO with my background, and help them stay afloat, help them weather these tough times,” he said. Many companies today are facing challenges with debt restructuring, and looking into asset based lending when the standard lending options have been severely limited, he said. Additionally, businesses need help managing their banking relationships and to renegotiate leases, among a host of other things. Kang was not looking for a permanent CFO position but decided to accept the offer with Partners in Care when it was presented. CFO opportunities According to staffing firm Robert Half, as the economy begins its recovery, more businesses will start shifting towards permanent CFOs. “We are seeing an increase on CFO hiring on the consulting side as well as the permanent side,” said Tony Uyehara, regional vice president for Robert Half, overseeing the San Fernando Valley region. “This is a great opportunity for extremely talented CFOs to step in and be invaluable assets to companies who are either in a difficult situation or are starting to turn things around.” Those CFOs that are in high demand however, are those that have much more than technical accounting skills. “Businesses are looking for exceptional interpersonal skills,” said Uyehara. “That interaction that CFO’s have today with the board and management team is crucial.” CEO’s expect that CFO’s will have great technical accounting knowledge on issues including taxation, financial reporting and budgeting, but are looking even further to those CFO’s who have had experience with reengineering and mergers or acquisitions, he said. “In the permanent hires side what we’re seeing is greater demand for CFOs that are very business minded individuals,” said Chavez. “CEO’s are increasingly leaning on these individuals for their business savvy, their big picture thinking, their strategizing as well as their financial and technical accounting skills.” Taking ownership According to Kang, the most valuable asset that a skilled CFO brings to a business is their ability to think like business owners. “The successful CFOs really take ownership of the company, they are a business partner to the CEO and have a broad understanding of the business,” Kang said. When it comes to permanent placement of CFOs, Lisa Knupp, director of recruitment service for Equis Staffing said companies are so much more selective in their hiring process today than they’ve ever been. “They are looking to find the perfect fit. Companies feel like they can get more for their money thinking there are more CFO candidates looking to get jobs, however it is more difficult to fill the position today than it was two years ago [because of how selective they are being],” she said. “It’s still very much a jigsaw puzzle in terms of trying to match the perfect candidate with the perfect company.” On the consulting side, Uyehara said the economy’s impact on CFOs retiring plans is also fueling the hiring trend. Many CFOs have decided to work longer years than they had anticipated. According to Uyehara, 52 percent of CFOs interviewed by Robert Half said they were reconsidering their retirement plans. “The consulting arena enables them to continue to maximize their income, appreciate and enjoy a challenging project and provide themselves greater flexibility, those are the key drivers,” he said.