The CEO-CFO Disconnect: Why The Right CFO Can Still Be The Wrong Hire

Hiring a CFO is a significant investment for any growing business, but even an experienced CFO can struggle if they and the CEO have different expectations of the role. Misalignment around responsibilities, decision-making authority or the company's growth plans can undermine the relationship before the CFO has had a chance to make an impact.

Often, the gap starts during the hiring process, when expectations on both sides don't quite match the reality of the business. Here's how founders can reduce the risk of misalignment and set their next CFO up for success.

Where does misalignment between a CEO and CFO begin?

Misalignment often starts when the CEO and candidate have different ideas about what the role involves and what the business needs.

A founder might be looking for a strategic partner to support the company's next stage of growth, while the reality is that the finance function needs significant work on reporting, systems or processes before it can operate effectively. Equally, a candidate might join expecting to influence key business decisions, only to find that the CEO is reluctant to delegate responsibility.

These differences can be difficult to resolve once the CFO is in the role, particularly if expectations around the company's financial position, resources or growth prospects were unclear during recruitment.

What should a CEO and CFO agree on before the hire?

Before starting a search, founders should define what the business needs from its next CFO and what success in the role will look like.

Before making an offer, founders should have clear answers to a few key questions:

• What are the biggest priorities for the business over the next few years, and what will the CFO need to deliver to support them?
• Which financial and commercial decisions will the CFO own, and where will the CEO remain involved?
• What is the current state of the finance function, including its systems, team capabilities and areas that need improvement?
• What budget, people and resources will be available to help the CFO deliver on their objectives?
• How will the CEO and CFO work together, communicate and approach disagreements?

Having these conversations early helps both sides build a realistic picture of the role and identify potential gaps before making a commitment.

How can founders reduce the risk of a failed CFO hire?

1. Be transparent about the business

Give candidates an honest picture of the company's financial health, growth plans, culture and existing challenges. If cash flow is tight, reporting needs improving or the finance team lacks the capacity to support expansion, these are important details to discuss before making an offer.

The same applies to the CEO's expectations. If the CFO will need to build processes from scratch or take a hands-on approach to day-to-day finance, make that clear rather than presenting the role as purely strategic. Candidates should be equally open about their experience, strengths and development areas.

2. Define the role and assess candidates properly

A clear job description should reflect the company's actual needs, with realistic responsibilities and expectations. A business preparing for a fundraise may need a CFO with strong investor relations and financial modelling experience, while a company scaling internationally may prioritise multi-entity reporting and experience building finance teams.

Practical exercises based on relevant company scenarios, alongside conversations with the CEO and key stakeholders, can help establish whether a candidate has the experience and approach needed for the role. They also give candidates a better understanding of the challenges they'll face.

3. Set clear expectations during onboarding

A structured onboarding programme should help the CFO understand the company's strategy, culture, financial position and key relationships across the business. This includes meeting department heads, reviewing existing financial processes and understanding what the CEO and board expect from the finance function.

Agreeing on priorities for the first three, six and twelve months gives both sides a shared understanding of progress.

4. Keep communication open

Alignment needs to continue beyond recruitment and onboarding. Regular check-ins give the CEO and CFO an opportunity to review progress, discuss challenges and revisit priorities as the business evolves. These conversations should also address whether the CFO has the authority and resources needed to deliver.

For example, the CEO may want to accelerate expansion while the CFO believes the business needs stronger cash flow controls first. Discussing these differences early helps both sides understand the reasoning behind each position and agree on a way forward.

What does a successful CEO-CFO relationship look like?

A strong CEO-CFO relationship is built on trust, clear expectations and a shared understanding of the company's direction.

The CFO should be able to challenge assumptions, highlight risks and offer a different perspective when needed. The CEO, in turn, must be willing to listen and give the CFO the authority to lead within their remit.

Constructive disagreement is part of the relationship. What matters is that both leaders understand their responsibilities and can work through differences to make better decisions for the business.

So how can you set your next CFO up for success?

A successful CFO hire depends on more than finding someone with the right experience. Both sides need a clear understanding of the role, the challenges ahead and what they expect to achieve together. Getting that alignment right from the outset gives the CFO a stronger foundation to make an impact.

At Zanda, we bring extensive experience and niche expertise in connecting startup founders with CFOs and finance leaders who are the right fit for their company's stage, ambitions and growth plans. We understand that every business has different needs, and finding the right person means looking beyond the job description to identify the experience, leadership style and capabilities that will make a genuine difference.

Planning your next CFO hire? Get in touch with our team to discuss what your business needs from its next finance leader and how we can support you.

Not sure if you're ready to hire a CFO? Download our CFO Hiring Playbook for practical guidance on assessing your business's readiness, defining your requirements and identifying the right finance leader.