Solving the CFO Retention Puzzle in Today’s Tight PE Talent Market

Is your CFO considering other opportunities? 42% of experienced leaders say yes. Learn from JM Search experts what factors will reduce turnover in a tight PE-backed CFO job market. 

CFO Retention: Is Your CFO Considering Other Opportunities? 

Our 2025 CFO Compensation & Insights Study collected data from 312 CFOs in the fourth quarter of 2024 and revealed the scope of this challenge: 

• 65% of first-time CFOs and 42% of multi-time CFOs said they had considered new opportunities in the past six months 

• 56% of CFOs were facing extended hold periods, and 75% of those leaders were exploring other opportunities as a result 

These numbers represent real risks: A CFO departure mid-transformation or during deal preparation can ripple across investor confidence, banking relationships, and overall enterprise value. 

What’s causing higher rates of CFO turnover? 

To unpack what’s driving CFO turnover today – and how firms can proactively address it – JM Search’s Andy Siravo, Partner, and Craig Wallace, Principal, share five best practices for retaining the right leader long enough to deliver meaningful value. 

A Tightening CFO Market 

Demand for top-tier CFO talent is surging past available supply, particularly for executives in the PE space. This mismatch is intensifying the competition, favoring firms that act quickly but remain disciplined about long-term fit.  

“The competition, especially for experienced leaders, continues to be at an all-time high. Sponsors are more frequently reaching outside of a candidate’s industry background to identify sitting CFOs. But experience alone isn’t a guarantee; it’s context and fit that matter most,” Andy explains. 

Speed is essential for securing top talent, but so is discipline.  

As Craig puts it, “There’s always urgency in today’s market. But what’s just as important as filling the seat quickly is securing someone who’s aligned and positioned to stay.” 

The Exit Timeline Effect 

No factor impacts CFO retention today more than shifting exit timelines. Our study revealed that more than half (56%) of finance leaders were navigating longer-than-expected hold periods, and among these CFOs, 75% actively considered new opportunities. By contrast, only 35% of CFOs whose exit timelines remained on schedule were exploring a move. 

For first-time CFOs, uncertainty around exits can be especially jarring, and they need extra coaching upfront and through delays: 

“Being transparent about realistic scenarios from day one is crucial,” Andy explains. “First-timers often join with big dreams about equity upside but don’t grasp how variable it can be. When timelines stretch, framing delays as value-building opportunities becomes critical.” 

For multi-time CFOs, they need compelling reasons to stay: 

“The path often matters as much as the payout for seasoned CFOs,” Craig adds. “Many have successful exits under their belts and are financially comfortable. They’ll stay engaged if the role continues to be challenging and impactful, but they’re also quicker to evaluate alternatives if it no longer aligns with their goals.” 

While exit timelines clearly impact retention, they’re far from the only factor. First-time and multi-time CFOs face distinct challenges and motivations that determine whether they’ll stay the course. Firms must understand these differences to keep the right leader in place. 

Why First-time CFOs Consider Leaving 

First-time CFOs bring hunger and fresh thinking. With strong mentorship and the right exposure, first-time C-Suite executives can thrive. 

“A battle-tested #2 – someone who’s been the CFO’s right hand through an exit or major transaction with exposure to tax, treasury, and banking relationships – can be ready to step up successfully,” Andy shares. 

He recalls a recent example where a “second-in-command” candidate was elevated after rigorous referencing:  

“He’s now been in the chair for 1.5 years, and sponsors rave about how he’s transforming the organization.” 

However, three vulnerabilities highlighted in our study impact first-timer CFO retention: 

• Board dynamics: 38% of first-time CFOs cited this as a reason for exploring new opportunities; they may underestimate the rigor demanded by stakeholders who focus solely on quarterly results rather than day-to-day progress. 

• Equity disappointment: 38% cited equity disappointment as a top factor driving them to look elsewhere; first-time CFOs commonly overestimate near-term payouts. 

• Compensation: 42% of first-time CFOs felt underpaid relative to market, compared to just 32% of multi-time CFOs; they tend to benchmark against seasoned CFOs, not peers. 

“When first-time leaders compare their compensation to their former boss, who may have multiple exits behind them, it’s critical to help them understand how performance drives long-term rewards,” Craig explains.  

For those considering first-time CFOs, clear equity education, board-level coaching, and guidance on PE dynamics can help them go the distance. 

When Veteran CFOs Walk Away 

Multi-time CFOs offer immediate impact: proven leadership, seasoned judgment, and quick credibility with boards. They know how to create value and stabilize organizations.  

“They also pressure-test assumptions and know what’s achievable,” Craig notes.  

But that experience cuts both ways. Multi-time CFOs most often leave when: 

• Equity outcomes disappoint: 40% in our survey cited unexpected equity amounts or exit timing as reasons for considering new opportunities; they calculate real returns and know when to walk away. 

• Company realities fall short: 29% said they consider leaving when the business is in rougher shape than expected; they recognize unfixable situations more quickly 

• Compensation expectations misalign: Having commanded top packages in the past, some expect outsized rewards 

“Those who have already banked successful exits may be less driven to push through multi-year delays when the economics don’t add up to the effort required,” Craig notes.   

To retain seasoned CFOs, sponsors must take extra steps to confirm alignment on role, timing, and motivation.  

Five Principles for CFO Retention 

Based on our experience, firms that keep CFOs for full value-creation cycles master the following practices: 

1. Win the speed game, without sacrificing diligence.  

In today’s market, top candidates rarely remain available for long. When firms identify someone who fits the role, waiting for a full slate often means losing them to competitors. The key is balancing urgency with thoroughness — knowing which evaluation steps are non-negotiable. Three areas demand particular focus: validating cultural and leadership fit through multiple perspectives, understanding true motivations alongside competing opportunities, and aligning compensation expectations early to ensure long-term retention. These are the moments of focus that protect against rushed decisions while keeping pace with the market. 

2. Acknowledge exit realities early.  

Be transparent about hold periods, possible extensions, and the commitment required. Clearly outline the assumptions underlying exit scenarios (i.e., valuation multiples, growth projections, market conditions) and how these variables directly impact equity outcomes. Emphasize how longer timelines create opportunities for deeper value creation, and ensure that both first-time and seasoned CFOs understand what makes this role uniquely rewarding – whether it’s the team they’ll build, the transformation they’ll lead, or the complex challenges they’ll tackle.  

3. Solve for geography strategically. 

While remote work expands the pool of talent, transformational roles like the CFO often benefit from in-person leadership.  

“We aim to first guide clients to finding the absolute best candidate in the local market,” Andy shared. “These are transformational roles where they’re rebuilding teams and a lot of that is mentorship and meeting with people face to face.” 

As Craig add, “Remote leadership is a double-edged sword: national access also means national poaching. Retention is stronger when location realities are weighed alongside experience and skills.” 

4. Match resources to reality.  

Mid-market and larger firms with resources can often afford to develop a first-timer; smaller firms may need someone more turnkey. Matching role expectations to company size and resources improves stability. 

5. Evaluate motivation, not just credentials.  

The best CFO hires articulate a compelling reason for taking this role, at this company, right now. Credentials open doors, but a strong answer about motivation predicts who stays. 

Looking Ahead: Align Your Needs with the CFO Market 

Today’s CFO market rewards firms that move fast but think long-term. The choice between a first-time and multi-time CFO depends on your specific situation: company stage, transformation requirements, timeline, and available support structures. Each profile brings strengths, risks, and retention watchpoints. 

What’s key is clarity and alignment from the start: being transparent about hold periods, setting realistic equity expectations, and understanding a candidate’s true motivation. Those who approach the CFO executive search with this level of discipline and foresight are far more likely to keep the right leader in the seat long enough to deliver lasting value. 

Explore our 2025 CFO Compensation & Insights Study for the full data behind these trends.