EP 017 - CFO Hiring + Comp Demystified with Dan Himple, Senior Finance Recruiter at HAYS

01/22/24 • 102 min

In this episode, Daniel Himple, a finance recruiter, shares insights into the recruitment process for CFOs and finance leaders in the startup world. He discusses the qualities of a great recruiter and the differences between working in UK and New York. Daniel also explains the backgrounds of modern CFOs and what they look for in companies. He provides advice on when to hire a CFO and the balance between fractional CFOs and full-time CFOs. Additionally, he discusses the increasing demand for CFOs and the key roles to hire at different stages of a company's growth. Further, Dan discusses the challenges of scaling finance leadership, the importance of industry-specific knowledge, and the role of technology in recruiting. He advises aspiring CFOs to gain broad experience early in their careers and to work with world-class CFOs for mentorship. Daniel also shares insights on resume writing, salary negotiations, and the CFO hiring process. He predicts a continued focus on profitability and increased demand for finance leaders in the coming years. --- Takeaways

A great recruiter specializes in a specific field and has a strong network and market knowledge.
Modern CFOs come from diverse backgrounds, including consulting and investment banking.
Companies are hiring CFOs earlier in their growth stages, and the role of the CFO has evolved to become more strategic.
The decision to hire a full-time CFO depends on the company's stage and financial resources.
The size of finance teams in startups is increasing, and CFOs are being given more resources to succeed.
The recruitment process for CFOs can take longer during turbulent markets, and candidates are becoming more risk-averse.
Successful CFO hires require alignment on strategic vision, communication, and a seat at the table.
Key roles to hire at different stages of a company include the first in-house finance hire, a growth-focused finance leader, and a CFO for exit or IPO. Finance leaders often struggle to scale beyond a certain point due to a lack of knowledge and exposure to the next stage of a company's trajectory.
Having industry-specific knowledge and experience is highly valued when hiring finance leaders, especially at later stages of a company's growth.
Compensation in tech companies typically includes a combination of cash and stock, with equity being a significant component.
Technology has greatly influenced the recruiting process, allowing for more efficient candidate sourcing and assessment.
Building relationships and networking are crucial for aspiring CFOs, and working with world-class CFOs can provide valuable mentorship.
Resumes should focus on tangible outcomes and achievements, and LinkedIn profiles should serve as an extension of the resume.
Practical assignments or case studies can be used to assess a CFO candidate's strategic thinking and industry knowledge.
The CFO hiring process should involve selling the company to candidates and ensuring a good cultural fit.
Predictions for 2024 include a continued focus on profitability and increased demand for finance leaders.

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Quotes

“The value of a great recruiter is all within their network. And then the knowledge and the insights that come with that network.”

“A great recruiter will always specialize in one specific field and not be a generalist.”

“The reason people come to these industries because they want more job enrichment, they want to take on additional roles that enables them to feel like they're having a real impact on the growth of the business and they want to work for a business model or a vision that they're passionate about.”

“The modern CFOs are the CEOs and COOs of the future.”

“Last year, 12-13% of our business came from seed-funded businesses who are starting to bring in their first finance leader.”

“Any startup that are looking to hire a financial leader, the real key is ensuring they're hiring people who know the nuances and the challenge of working in a fast growth startup.”

“The longer that people stay in banking for or even public accounting, the harder it is for them to then make that transition into other industries because they're almost seen as institutionalized or actually you actually get to a salary that it makes it even harder to leave.”

“Those would be the big things for me: fundraising, exit and scaling.” - What are companies looking for in CFOs?

“What a CFO or a finance leader seeking in roles? The key phrase that is always used is a seat at the table.”

“In the last two years, our average timeline from registering a role to filling a VP of Finance or CFO has increased from eight to 10 weeks.”

“When I looked at Q4 of 23 in comparison to Q4 of 22, we'd seen a 22% increase in demand for CFOs or on new...

A great recruiter specializes in a specific field and has a strong network and market knowledge.
Modern CFOs come from diverse backgrounds, including consulting and investment banking.
Companies are hiring CFOs earlier in their growth stages, and the role of the CFO has evolved to become more strategic.
The decision to hire a full-time CFO depends on the company's stage and financial resources.
The size of finance teams in startups is increasing, and CFOs are being given more resources to succeed.
The recruitment process for CFOs can take longer during turbulent markets, and candidates are becoming more risk-averse.
Successful CFO hires require alignment on strategic vision, communication, and a seat at the table.
Key roles to hire at different stages of a company include the first in-house finance hire, a growth-focused finance leader, and a CFO for exit or IPO. Finance leaders often struggle to scale beyond a certain point due to a lack of knowledge and exposure to the next stage of a company's trajectory.
Having industry-specific knowledge and experience is highly valued when hiring finance leaders, especially at later stages of a company's growth.
Compensation in tech companies typically includes a combination of cash and stock, with equity being a significant component.
Technology has greatly influenced the recruiting process, allowing for more efficient candidate sourcing and assessment.
Building relationships and networking are crucial for aspiring CFOs, and working with world-class CFOs can provide valuable mentorship.
Resumes should focus on tangible outcomes and achievements, and LinkedIn profiles should serve as an extension of the resume.
Practical assignments or case studies can be used to assess a CFO candidate's strategic thinking and industry knowledge.
The CFO hiring process should involve selling the company to candidates and ensuring a good cultural fit.
Predictions for 2024 include a continued focus on profitability and increased demand for finance leaders.

---

Quotes

“The value of a great recruiter is all within their network. And then the knowledge and the insights that come with that network.”

“A great recruiter will always specialize in one specific field and not be a generalist.”

“The modern CFOs are the CEOs and COOs of the future.”

“Last year, 12-13% of our business came from seed-funded businesses who are starting to bring in their first finance leader.”

“Any startup that are looking to hire a financial leader, the real key is ensuring they're hiring people who know the nuances and the challenge of working in a fast growth startup.”

“Those would be the big things for me: fundraising, exit and scaling.” - What are companies looking for in CFOs?

“What a CFO or a finance leader seeking in roles? The key phrase that is always used is a seat at the table.”

“In the last two years, our average timeline from registering a role to filling a VP of Finance or CFO has increased from eight to 10 weeks.”

“When I looked at Q4 of 23 in comparison to Q4 of 22, we'd seen a 22% increase in demand for CFOs or on new...

Previous Episode

EP 016 - The CannaTech CFO with David Yan, CFO at Treez

In this conversation, David Yan, CFO of Trees, shares his journey from KPMG to the corporate finance side and eventually to the cannabis industry. He discusses his experience at various companies and the challenges and opportunities he encountered along the way. David also provides insights into the state regulations in the cannabis industry and the funding landscape for companies in this space. He participates in a quick-fire game where he compares different metrics of Trees, Wrike, and Rike. Further, David discusses the evolution of the role of the CFO and the characteristics of a modern CFO. He emphasizes the importance of being forward-thinking and acting as the nexus point between a company's strategy, capital investment, operations, and people. David also explores how advanced technology and data analytics have transformed the finance function, and he shares insights on fostering a culture of innovation and accountability within a team. He provides advice for new CFOs on their first 100 days and offers guidance for young professionals aspiring to become CFOs. --- Takeaways

Transitioning from a traditional finance role to corporate finance can provide a broader perspective and operating experience.
The cannabis industry is highly regulated at the state level, which presents unique challenges and opportunities for companies operating in this space.
Investor sentiment towards the cannabis industry has evolved over time, with traditional investors now showing interest and conducting due diligence.
Metrics such as gross profit, payback, average revenue per customer, LTV to CAC, and churn can vary across companies depending on their business models and target markets. The role of the CFO has evolved to be more forward-thinking and strategic, acting as the nexus point between a company's strategy, capital investment, operations, and people.
Advanced technology and data analytics have transformed the finance function, enabling CFOs to gain insights and make informed decisions.
Fostering a culture of innovation and accountability within a team requires investing in people's development, encouraging problem-solving, and aligning decisions with the company's overall business objectives.
In the first 100 days as a CFO, it is important to understand the business, build relationships with colleagues, prioritize key issues, and communicate a roadmap for the finance function.
Young professionals aspiring to become CFOs should focus on developing a solid grounding in finance fundamentals, understanding the company's strategy, and how it operationally meets its goals.

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Quotes

“My main interest area was really just understanding all the different challenges companies were going through.”

“If you ultimately want to influence the strategy of business and you want to influence the outcomes of the company then going to have to get into the operations, you going to have to understand the strategy, you have to go down into the model, you have to go down into how you actually affect change and decision making into the company.”

“Putting yourself outside of your comfort zone as many times as you can in the first five years of your career is tremendously valuable.”

“(Understand) how much trust you can put in people and what your role is in making sure that your team succeeds.”

“(Definition of Modern CFO) to really being the nexus point between the company strategy, it’s capital investments, as well as operations, and people.”

“Ultimately, the role of the CFO is making sure the company can see around the corner in all aspects.”

“Once the capital is gone, it doesn’t come back.”

“I think of it as a pyramid in that at the very bottom layer, you have to have the finance operations. If you don't have that, you're not going to have the accounting. If you don't have the accounting, you're not going to have data integrity. And if you don't have data integrity, you're not going to be able to do financial planning. And if you don't have the financial planning, and then above the financial planning is analytics and insights. So, you really have to create a team and navigate systems and data that can meet the maturity of your business.”

“It's not about raw data. It's about insights. So, you have to start with what insights you need to run the business one year forward or a little bit more, again depending on your scale, and work backward into what systems, what processes, and what team structure would best help you get to that state.”

“You want to understand as quickly as you can, what you can do to help the company see around the corner.”

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Where to find David Yan:

LinkedIn: https://www.linkedin.com/in/david-yan-b597b11/

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Where to find Treez:

...

Next Episode

EP 018 - The Infra SaaS CFO with Rakib Azad, CFO at Alkira

Rakib Azad shares his career journey from studying medicine to becoming a CFO in the tech industry. He discusses his transition from medical studies to finance and how he discovered his passion for numbers and business. Rakib also talks about his experiences at MongoDB, Chain Analysis, and Alkira, highlighting the similarities and differences in the infrastructure software space. He explores pricing models in the industry and the challenges of building a winning finance team while scaling a company. In this episode, Rakib Azad, CFO of Alkira, discusses the importance of building a diverse and well-rounded team, hiring for diversity and fit, investing in talent for an IPO, implementing systems and processes, navigating the IPO process from an FP&A perspective, the role of a modern CFO, the first 90 days at a new company, defining a successful career, advice for his younger self, and what keeps him going as a CFO. --- Takeaways

Building a diverse and well-rounded team is crucial for success in finance organizations.
Hiring for diversity and fit is important to create a healthy and productive work environment.
Investing in talent for an IPO should be done strategically and well in advance of the IPO.
Implementing systems and processes is essential for scaling a company and optimizing financial operations.
Navigating the IPO process from an FP&A perspective requires deep understanding of the business and close collaboration with stakeholders.
The role of a modern CFO goes beyond numbers and involves being a strategic business partner.
The first 90 days at a new company should be focused on listening, learning, and building relationships.
A successful career is defined by making a meaningful impact and building great companies.
Advice for a younger self includes being patient and diving deep into learning opportunities.
What keeps a CFO going is the challenge of solving new problems and contributing to the growth of a company.

---

Quotes

“I just love operations and how the numbers tie back to it.”

“Being in the tech world is unbelievable because it's things that you wouldn't have imagined 15, 20 years ago, some of the tech that's coming out. And now, I'm helping these companies become seminal companies and it's a great feeling.”

“I pay a lot of attention to the go-to-market org and how that needs to evolve.”

“It's a hard buy at first because sometimes it is transformational... So the logo land is tough. So that's been a theme I'm seeing. But then the economics are tremendous. So it's a high cost to acquire. But the LTV gets delivered in spades once you have the right solution.”

“I love to have a well-rounded team because I think you get the best work from some of the parts who are really different.”

“You want processes and automations that actually make people's lives easier while also building the backend guardrails and then compliance that are required.”

“If you are an FP&A team that is very proactive in the business, you're gonna be everywhere in the IPO process.”

“Obviously you want that you're the guy who knows numbers and you have the foundation of us understanding how P&L and everything works. But now you are that strategic business partner with that acumen.”

“I'm gonna be a guy who's gonna have empathy and also hold you accountable. So that's what I pride myself on. I think the modern CFO needs to have those two aspects in them.”

“It's up to the modern CFO to deliver the company's strategy in a way that's digestible for each of the leaders.”

“The more you put your effort in and learn more, the better your future self is going to be.”

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Where to find Rakib Azad:

LinkedIn: https://www.linkedin.com/in/rakibazad/

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Where to find Alkira:

LinkedIn: https://www.linkedin.com/company/alkiranet/

Twitter: https://twitter.com/alkiranet

Website: https://www.alkira.com/

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Where to find Rohit:

LinkedIn: https://www.linkedin.com/in/rohitagarwal001/

Twitter: https://twitter.com/podcast_SoF

Email: [email protected]

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