The CFO Compensation Trends Shaping Today’s Market for Top Financial Talent

As the private equity landscape continues to evolve, so does the critical role of the CFO in investor-backed businesses, along with their compensation structures and career paths. To shed light on the current state of the CFO talent market, JM Search recently surveyed over 300 CFOs—the majority (83%) of whom were associated with investor-backed or private businesses—across multiple industries to provide essential benchmarking data for organizations seeking to attract and retain top financial leadership.  

Here were the top-level findings, which you can read more about in the full report:  

1. The New Benchmarks for Competitive CFO Compensation  

Attracting exceptional CFO talent hinges on offering competitive compensation packages that reflect both company scale and candidate experience. Our data reveals that for mid-market companies ($100M-$500M in revenue), the most prevalent CFO salary range falls between $350k and $399k, bonuses typically amount to 50-59% of the base salary, and equity grants commonly range from 1.00 to 1.24 basis points.  

– While company size sets the baseline for CFO compensation, it’s experience that drives the premium. Nearly half of CFOs with 6-10 years of experience report earning base salaries above $350k, regardless of company size. Within this group, 40% receive bonuses that exceed 50% of their base salary, and nearly a third secure equity grants above 1.25 basis points. 

– Beyond compensation, seasoned CFOs also have greater workplace flexibility, with those having proven transaction experience more likely to secure hybrid or remote arrangements rather than strict in-office work arrangements.  

– This experience advantage extends beyond logistics to satisfaction levels. When asked if CFO respondents believe their current compensation is competitive in today’s market, 42% of first-time CFOs reported feeling their compensation was under market compared to only 32% of multi-time CFOs who share this sentiment.  

2. The Dominant Career Paths to CFO Leadership 

The pathways to the top finance role remain relatively traditional, with Financial Planning & Analysis (FP&A) and Controller/Accounting backgrounds continuing to dominate across all industries. That said, our research uncovered sector-specific variations that highlight important nuances. In Consumer and Software & Technology companies, FP&A experience provides the most common route to the CFO chair. Meanwhile, Industrial & Manufacturing and Healthcare & Life Sciences organizations more frequently promote from Controller and Accounting roles. Capital markets backgrounds (Private Equity and Investment Banking) represent a growing but still minority pathway. These backgrounds find their strongest foothold in Healthcare & Life Sciences and Business & Financial Services, where deal experience and capital markets expertise align most closely with company needs. 

3. The Evolving Scope of the Modern CFO  

Our survey underscores that the modern investor-backed CFO role extends well beyond traditional finance functions, particularly in smaller organizations where resource constraints demand broader leadership.

– In companies generating less than $100M in revenue, CFOs routinely oversee Legal & Compliance functions in more than 60% of cases, Human Resources in 55%, and Operations in over a third of organizations. 

– This breadth of responsibility narrows predictably as companies scale. By the time organizations exceed $500M in revenue, HR oversight drops to just 5%, while Legal & Compliance and Operations responsibilities decrease to 29% and 21%, respectively. When building their teams, CFOs consistently prioritize the fundamental building blocks of financial operations. Controller and FP&A roles dominate hiring and upgrade decisions across all company sizes, with 63% of lower mid-market CFOs adding or upgrading Controller positions and 55% strengthening their FP&A function.  

4. What’s Driving CFOs to Consider New Opportunities  

The most striking finding in our study concerns CFO retention, particularly among first-time CFOs. Our research reveals that 43% of first-time CFOs have served in their role for over six years, yet a majority (65%) have considered departing in the past six months. Their primary frustrations center on challenging board relationships and equity disappointment. In contrast, 42% of multi-time CFOs have contemplated leaving their role recently, driven primarily by unexpected changes to equity amounts or exit timing and their companies being in worse shape than initially anticipated. 

Extended exit timelines create significant retention risks across all levels of experience. Our findings indicate that 56% of CFOs report exit timelines exceeding original expectations. Among this group experiencing longer hold periods, 75% are actively exploring new opportunities. Meanwhile, only 35% of CFOs whose exit timelines remain unchanged considered a new role in the past six months. While market conditions and exit timing often remain outside organizational influence, clear equity communication and realistic timeline discussions can make a meaningful difference. The 40-percentage-point gap suggests these conversations may be more important than many companies realize. 

Strategic Implications for Companies and CFO Candidates 

The bottom line? Competitive compensation must reflect experience levels and market realities, yet compensation alone cannot ensure retention. Companies must also provide clear growth paths, manage role evolution thoughtfully, and maintain transparent communication about equity and exit expectations. As the CFO role continues to evolve in response to changing market dynamics, organizations that understand and address these multifaceted retention drivers will be best positioned to secure and retain the financial leadership necessary for sustained growth. 

Download JM Search’s 2025 CFO Compensation & Insights Study for comprehensive analysis, detailed methodology, and industry-specific breakdowns that were not included in this summary.