In Silicon Valley in 2024, the #1 most often recruited executive is the Chief Financial Officer. At Lonergan Partners we are often asked about the secrets a Board should know before they begin a CFO recruitment process. Our answer is: “The Three Ts.”
Timeliness Great CFO candidates are currently employed. They don’t have time to be dragged through a 5 – 6 month CFO recruitment process. Smart Boards are modifying their search process to finish in 75 – 90 days, creating searches with urgency and purpose.
Transparency Strong Boards understand that the best CFOs will need to understand all of the operating details about the company before they decide. The best companies invite lead candidates to spend time with the entire Board AND the senior management team AND with outside audit partners and counsel. No surprises after the process is concluded.
Talent We’re amazed at how few candidates are considered for many Chief Financial Officer searches here in Silicon Valley. A wide net needs to be cast to enlist the best of the best. Boards need to be toughminded about the outreach and appraisal process, to ensure a solid outcome.
You will notice that we do NOT include money as a major factor in the recruitment of a CFO. Compensation is important, but attention to the Three Ts is far more so. The CFO touches everyone inside the company. A good CFO search outcome is critical for the entire organization.