How much is a CFO really worth?

I have the pleasure of speaking with CFOs every day. I always enjoy my conversations with Chief Financial Officers, because unlike the accountant stereotype, CFOs are engaging and personable individuals.

Common question I get from CFOs are:

How’s the market? – When they ask this question, they are specifically asking about themselves. CFOs are intelligent individuals, and have risen to their current status because they have been able to identify opportunities and take advantage of them, both for themselves and their employers.

What am I worth on the market? – Some may see this question as a question of their loyalty to their current employer. An article written in Accountancy Age (The price of your loyalty) identifies that this question is really in the best interest of the employer. If a company’s second most senior and reliable person is being paid below market, the company is facing the risk that they will leave.

Contrary to news items which identify Chief Financial Officers for financial misconduct, these are really rare. From my experience, CFOs are the people in the company most likely to ensure proper financial conduct, and in certain situations CFOs are put in by a Board to balance out a cowboy CEO.

So what is a CFO really worth?

A great CFO is worth more than he or she is being paid. Because if your CFO is really good, and you are not paying her or him enough, someone else will.