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How to stop your CFO leaving you for private equity

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How to stop your CFO leaving you for private equity

Highly skilled and ambitious finance chiefs have long been attracted to the dynamism of private equity. In fact, a lack of experience in the industry can be considered a major hindrance to a CFO’s career progression, according to recruitment experts. 

“It’s no secret that hardworking and ambitious financial professionals aspire to be a private equity CFO. I’d be very surprised if a candidate stated that they didn’t want to end up there,” says Mike Mesrie, founder and director of executive search firm MDM Resourcing. “It’s long been regarded as the promised land where there’s great riches to be had.”

In recent months, private equity firms have been largely focused on driving value in their existing portfolios and navigating headwinds. The result has been not only fewer deals but a higher turnover of CFOs, says Ben Graham, founder of executive recruitment firm Triton Exec. As a result, “CFO hiring into PE-backed businesses has risen sharply from Q4 2023 and is showing no sign of slowing down.”

It’s not for the faint-hearted, but the potential rewards are significant 

With a heightened focus on jump-starting stagnating portfolio performance, demand from private equity for CFOs with the unique skills needed to navigate today’s high inflation and rising interest rates is increasing. “As the need for a successful exit grows, portfolio businesses are being actively encouraged to replace their CFO,” Graham says. “We’ve seen an increase in CFO mandates over the last 6 months.”

Businesses are paying more than ever for top finance talent. And with private equity firms now on the lookout for new CFOs, many of whom are equally eager to join the elusive club, boards and CEOs need to know how to hold onto theirs.

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Understanding the pull of private equity 

Understanding the nuances of the CFO role in private equity can help businesses better understand the appeal of the job – and start implementing a more effective retention strategy. 

While it may be tempting to assume that financial incentives are the main motivating force, there are other equally important factors at play. 

The adrenaline rush of working towards an acquisition or a sale is stressful, but exciting. And the shorter stints typically spent in a portfolio company while working towards a deal close provides an end-date that many find refreshing. 

“Working in this realm presents a unique opportunity where you feel like you can directly shape the trajectory of the organisation and make tangible, impactful changes,” says Catherina Butler, interim CFO at software business Aryza. “The potential to make an impact stretches far beyond financial metrics, encompassing strategic realignments, talent cultivation, organisational structures and operational efficiencies and processes. It’s not an arena for the faint-hearted, but for those willing to embrace it, the potential rewards are significant and the journey is exciting.”

From a cultural perspective, there is a lot less juggling of personalities and shareholder demands. CFOs will typically work with just one or two sponsors, communicating financial results, working through capital structure issues or M&A opportunities and generally speaking the common language of finance. “There is a sense of alignment that is often lacking in other businesses,” says Harry Hewson, managing director of executive recruitment firm Camino Search. “You’ve got a management team that are all working towards the same goal and are motivated to get to the next stage. Finance chiefs really love that.” 

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It also demands a different style of leadership. Private equity CFOs have fewer external-facing duties, which can appeal to executives who tend to be more introverted. They aren’t in the spotlight as much so they get to spend more time with their team, adding value to the business. “Basically doing parts of the job they enjoy the most,” says Hewson. 

A private equity firm will usually hire a finance chief with a specific goal in mind; whether it is to help execute a complex carve-out or turn around a distressed company. Working in more challenging and niche areas allows CFOs to sharpen their skills and become an experts in their field. “This is something they may not get a chance to do in their current roles,” Hewson adds. 

It’s easy to see the attraction of private equity: fast-paced, strong incentives, tax benefits and less public scrutiny. Admittedly, these aspects of the job are hard to compete with. But scratch the surface and a different reality emerges. 

The survival rate of CFOs in private equity is notoriously low: most are replaced within 18 months of investment and those able to make it past that point still have an average tenure of 20% less than their listed counterparts, according to accounting firm EY. 

“It might sound super glamorous if it goes well. But, realistically, a lot of the time it doesn’t,” Hewson says. There is an opportunity for businesses to use that to their advantage. 

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The most effective retention strategies 

Competition from private equity may be tough, but there are steps that businesses can take to boost CFO retention and strengthen loyalty.

Recognition and tailored reward systems, including competitive salaries and bonuses are “a must” for retaining top financial talent, stresses Doug Baird, CEO at leadership consultancy New Street Consulting Group. More important still, he argues, is the need to design compensation packages that not only reward past performance but incentivise future success. “Offering equity participation through long-term incentive plans or growth schemes is becoming more common. These schemes help to instil a sense of ownership and belonging, giving CFOs a vested interest in the success of the company – and a strong incentive to stay.” 

Sustainability and digital transformation are becoming increasingly decisive factors for CFOs when considering a position, Baird adds. “CFOs will be looking to see if a company’s values and missions are clearly aligned with them on this.” 

Private equity has long been regarded as the promised land

In Mesrie’s view, CFOs typically become disengaged when they feel underappreciated. Public acknowledgments in company meetings can boost morale and emphasise the value of the CFO to the entire organisation. Equally important is a culture within the C-suite that promotes a collaborative environment through open and honest communication, Mesrie adds. “For CFOs to feel personally and professionally valued, they need to be made to feel part of the team.”

Given how closely they work together, special attention should be given to the relationship between the CEO and CFO, Mesrie stresses. “It needs to be a proper partnership where the CFO is listened to. An overbearing or irrational CEO will quickly leave any finance chief feeling disenchanted, pushing them out the door.”

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“The life of a CFO can be a lonely one,” Hewson adds, so anything companies can do to provide additional support and stability is key. Learning and development programmes should be tailored to finance leaders’ individual goals, he says, while flexible working hours and the option to work remotely can help them to manage their demanding roles without sacrificing personal or family time. Hewson believes this could be where businesses have the upper hand over private equity firms which tend to be less amenable to flexible working. 

Continue to invest in succession planning

While having a solid retention strategy in place can keep CFOs happy, motivated and away from circling private equity firms, it’s important to manage expectations about the extent to which they will help. 

Hewson believes that continuous investment in a CFO succession plan is the most effective way to safeguard financial leadership in the long term.

And yet many businesses are failing to take it seriously: only 26% of UK companies stated that they have a succession plan in place for their C-suite, according to data published by recruitment firm Robert Half. A further 17% said they have an unofficial or informal plan, while the majority (57%) admitted that they do not have any succession plan at all.

This is even more surprising given that CFO turnover is at an all-time high. Over the last 12 months, 20% of FTSE 100 CFOs left their jobs, compared with 13% in 2019, according to data published by Russell Reynolds Associates. 

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Hewson sees it as a “huge missed opportunity” for businesses to identify, train and develop the next generation of CFOs. “Right now, there is a pool of diverse, young and talented finance professionals that are waiting to step up into CFO positions. They’re hungrier, more motivated and they’ve got a point to prove.”

An empty CFO chair in the C-suite puts businesses at tremendous risk of instability. A failure to plan properly for that possibility is not only putting the business in jeopardy, it is shutting the door on a cohort of new finance leaders.

Three ways to motivate your CFO 

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ATI Promotes Longtime Leader to CFO and SVP of Finance

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ATI Promotes Longtime Leader to CFO and SVP of Finance

ATI Inc., a Dallas-based manufacturer of high-performance materials for the aerospace and defense industries, announced that James Robert “Rob” Foster will be promoted to senior vice president of finance and chief financial officer, effective January 1, 2026.

Foster succeeds Don Newman, who will serve as strategic advisor to the CEO beginning January 1. As previously announced, Newman will retire on March 1, 2026, and serve in an advisory capacity in that time to allow for a smooth transition.

“Rob is a proven P&L leader with enterprise-wide experience in the areas that matter most to ATI’s continued growth,” Kim Fields, president and CEO, said in a statement. “He brings deep expertise not only in finance but also as an operational leader. Rob played a pivotal role in the successful Specialty Rolled Products transformation, consistently helping ATI to deliver strong returns and shareholder value. I look forward to partnering with him as we enter our next phase of profitable growth.”

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Foster, a longtime ATI leader, brings both operational expertise and financial discipline to the CFO role, the company said. He most recently served as president of ATI’s specialty alloys & components business, where he improved efficiency, grew capacity, and advanced the company’s role as a global leader in exotic alloys. Foster previously served as vice president of Finance, Supply Chain, and Capital Projects, overseeing ATI’s global finance organization, capital deployment processes, and enterprise supply chain performance. Earlier in his career, he led Finance for both ATI operating segments and the Forged Products business.

“I’m honored to become ATI’s next CFO,” said Foster. “ATI is well-positioned with a strong balance sheet, focused strategy, and significant opportunities ahead. I look forward to working with our team to drive disciplined investment, operational excellence, and long-term value creation for our shareholders.”

Newman added, “Rob is an exceptional leader who understands ATI’s strategy, operations, and financial drivers. He has delivered transformative results across the organization. I look forward to supporting a seamless transition as we pursue this next step in our succession planning.”

Before joining ATI in 2012, Foster held senior finance roles at API Technologies Corp. and Spectrum Control Inc., where he led ERP implementations, acquisition integrations, and internal control enhancements. He began his career as an auditor at Ernst & Young (EY).

ATI produces high-performance materials and solutions for the global aerospace and defense markets, and critical applications in electronics, medical, and specialty energy. 

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R E A D   N E X T

  • The company said Keith Schroeder brings more than 40 years of experience in accounting, corporate control and reporting, finance, operations, and CEO and CFO strategic roles.

  • James Cook announced his retirement after 24 years of service and will officially retire on June 30. James Gilligan will take his new post, effective June 16.

  • Anthony DiSilvestro joins KDP at a pivotal moment as it moves to close its $18 billion acquisition of Netherlands-based JDE Peet’s. His “significant” M&A experience will advance the combined company’s integration and its ultimate split into two “winning companies,” CEO Tim Cofer said.

  • Donna Guy brings more than 25 years of experience in financial leadership across public and private companies to her new position. 

  • Last week, Irving-based Caterpillar marked its 100th anniversary year with celebrations throughout the U.S. commemorating “a monumental moment” in the company’s history. The company officially turns 100 on April 15, marking a century of “customer-centric innovation and industry-leading transformation”

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Abu Dhabi seeks to build bridge between new media & finance – The Times of India

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Abu Dhabi seeks to build bridge between new media & finance – The Times of India

ABU DHABI: Instead of waiting for the future of media, Abu Dhabi is building it. The city played host this week to leading names from media and entertainment industries at the Bridge Summit, aptly named for seeking to position the emirate at the intersection between new-age media, innovation and investment.The three-day event at Abu Dhabi National Exhibition Centre from Dec 8 to 10 buzzed with energy, new ideas, collaborations and MoU deals as thousands of content creators, media brands, communicators, tech developers, AI innovators, investors and academics — who have been working in isolation — converged to brainstorm ideas, analyse future trends in the media industry and discuss ways to monetise them. How to get around the associated risks of privacy violation, fake news and narratives, defamatory content and online harassment were a natural corollary to the discussions.The idea of Bridge Summit originated at a lunch meeting in Abu Dhabi earlier this year between Sheikh Abdulla Bin Mohammed Bin Butti Al Hamed, chairman of UAE National Media Office, and Richard Attias, the Moroccan events producer associated with the Clinton Global Initiative, Nobel Laureates Conference and Davos Forum. The two discussed how UAE could give media, creators, tech innovators, social media outlets and investors a platform to connect and build the future of media. Eight months later, that dream turned into reality with Bridge Summit.Al Hamed, in his opening address, outlined Bridge Summit’s mission to unite media, technology, finance, and culture in building a more trusted, inclusive, and resilient information order.Speaking to TOI on the sidelines of the summit, Jamal Mohammed Obaid Al Kaabi, DG, UAE National Media Office and Bridge Alliance vice-chairman, said the forum seeks to secure a win-win situation for all, be it govts, media, content creators, social media platforms, gamers, investors and technology providers. “We are trying to help everyone — those who have a story to reach production, a company to reach a customer and govts to understand what’s happening in the market”.He added: “We believe that Bridge can be the brand that people will trust and look at in the future. We can connect it with media initiatives around the world. We believe that positive narrative can be supported through Bridge”.The global media and entertainment industry generated over $2.8 trillion last year, with gaming alone rivaling film and television at nearly $200 billion. Streaming continues to reshape consumption, while nearly 70% of content creators are already using AI tools.Rubbing shoulders at the summit were former heads of state, journalists, representatives of social media platforms, AI innovators, gaming developers, entrepreneurs and media influencers from across the globe; actors Priyanka Chopra Jonas and Idris Elba and footballer Gerard Pique lent it star power.Over three days of fireside chats, panel discussions, workshops and MoU signing, content creators and influencers took lessons from experts and peers on how to tell their stories better and hold their audience’s attention till the last frame.With artificial intelligence (AI) tools revolutionising the media space and content creation industry, engagements delved into how to maintain a judicious balance between human intelligence and artificial intelligence while tailoring content to suit users’ preferences and attention span.Sessions reflected on how the traditional print and TV journalism is being rapidly taken over by digital news content. Justin Smith, CEO of independent global news company Semafor, predicted that human journalist will continue to be relevant as the primary resource for original information, but must learn to harness the power of AI to add value. Richard Attias, who is on the Bridge board of directors, had a word of caution: “Human intelligence needs to always challenge artificial intelligence. We should not be losing the control of AI, which is like a robot”.According to UK journalist and broadcaster Emily Maitlis, agenda-based journalism is inevitable in the age of social media as one with a louder voice and reach, who can put out his version of the story more convincingly, tends to control the narrative. Adeline Hulin, chief of media and information literacy unit at Unesco, revealed that a global survey had found that 62% users don’t do any fact-checking before forwarding information online; most content creators are unaware of the international standards of freedom of expression; and just 20% users report hate speech. “Unesco has developed a global curriculum for media information literacy. We are working to integrate it with formal education and getting local partners to organise hackathons,” she said.Former deputy PM of UK Oliver Dowden advocated industry-led responsibility over sweeping regulation, saying there should be “clear guardrails” as creator content becomes the primary source of information for young audiences.Al Kaabi said Bridge Summit is just the beginning and “pop up” events will be held each coming quarter across America, Asia, Europe and Africa. “We want to hold a mini-Bridge in India. Also, there shall be more of Bollywood, not just Priyanka, at the next edition of the summit here,” he said.(The writer was in Abu Dhabi at the invitation of Bridge Alliance)

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Supreme Court case could reshape campaign finance — and open new money pathways into Georgia’s biggest races

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Supreme Court case could reshape campaign finance — and open new money pathways into Georgia’s biggest races

A major Supreme Court case could upend how money flows into federal elections, and Georgia may feel the first impact.

Republican Party committees are asking the Court to strike down a longstanding limit on how much political parties can coordinate their spending with candidates. If the justices side with them, experts say it would create new pathways for wealthy donors to steer massive checks into individual battleground races — including in Georgia, one of the country’s most competitive political states.

“It would open the floodgates for the biggest donors across the country to funnel money through the parties into specific Senate or House races,” said Eric Petry, counsel at the Brennan Center for Justice. “That problem would get even worse in places like Georgia.” 

The Supreme Court heard arguments this week.

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What’s at stake: millions in earmarked political spending

Under current federal rules, parties can assist their candidates but only up to capped limits designed to prevent corruption and donor influence.

If those caps disappear, Petry says a single donor could write a check for over $1 million and effectively tell a national party to direct it toward a specific candidate.

“That poses really significant corruption risks,” he said. 

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Critics warn that political parties could become conduits for wealthy funders seeking to maximize influence in targeted states, especially fast-changing battlegrounds like Georgia.

Georgia voter voting — I Voted sticker

“Georgia Voter” stickers at an early voting polling location for the 2020 presidential election in Atlanta, Georgia, on Monday, October 12, 2020.

Elijah Nouvelage/Bloomberg via Getty Images


Why Georgia could become ground zero

Georgia’s U.S. Senate races routinely draw national attention and tens of millions of dollars in outside spending. Metro Atlanta’s rapid political shifts — and fierce competition statewide — make the state an attractive target for national donors.

Already, Georgia saw historic spending in judicial elections last year, with outside groups pouring money into state Supreme Court contests. Weakening federal guardrails could accelerate that trend.

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“We already see big donors funneling tens or hundreds of millions into Super PACs,” Petry said. “If they can now funnel money through political parties — and have that money directly coordinate with candidates — that’s a very real concern.” 

Such a ruling could also intensify power struggles within Georgia politics. Secretary of State Brad Raffensperger recently criticized the state’s campaign laws, saying current limits give Lt. Gov. Burt Jones an advantage as both eye the 2026 governor’s race.

Though not weighing in on the Raffensperger dispute directly, Petry said candidates nationwide are “pushing the envelope” to find ways around weak or uneven finance rules, especially as federal regulators remain gridlocked. 

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A broader crisis of trust in elections

Public concern over the influence of money in politics has never been higher. Large bipartisan majorities — often 70% to 80% of Americans — say wealthy donors have too much sway over elected officials, according to polls cited in the Brennan Center analysis.

Petry said a sweeping deregulatory ruling from the Court could deepen that divide.

“If the biggest donors exert even more influence than they currently do, I would expect public confidence in the campaign finance system to continue to decrease,” he said. 

But paradoxically, he added, public frustration might also fuel a renewed push for reforms such as transparency rules or public financing. 

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Could Congress step in? Not anytime soon.

Even if the Court strikes down the limits, Petry says change isn’t likely to come quickly.

“Realistically, there’s not much chance of legislative action before the 2026 midterms,” he said. “Congress has shown that it doesn’t move quickly — if it moves at all — in this area.” 

He argues that the only long-term fix may be a constitutional amendment allowing lawmakers to fully regulate campaign spending — something the Brennan Center says has broad public support.

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A ruling that could rival Citizens United

If the justices side with the challengers, legal experts say it could become the most consequential campaign finance ruling since Citizens United, the 2010 decision that unleashed unlimited outside spending.

For Georgia — where elections are increasingly decided by razor-thin margins — the consequences could be immediate and far-reaching.

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