Fractional CFO Model Gains Traction as Finance Leaders Seek Flexible Expertise

Fractional CFO Model Gains Traction as Finance Leaders Seek Flexible Expertise

The fractional CFO model—where senior finance executives split their time across multiple companies—is drawing increased attention from finance leadership circles, according to insights shared at a recent CFO Leadership Council event featuring Michaella Gallina, a practitioner in the space.

The discussion, part of the council's ongoing programming for its 2,500-member community of CFOs and finance leaders, focused on what makes fractional finance leadership arrangements work in practice. For finance chiefs weighing whether to offer fractional services or hire fractional talent, the session offered a rare look at the operational realities behind a model that's moved from niche to mainstream over the past several years.

The timing is notable. As companies face pressure to maintain sophisticated finance functions without the overhead of full-time C-suite salaries, the fractional model presents an alternative that's particularly attractive to mid-market firms, portfolio companies, and businesses in transition. The arrangement allows companies to access CFO-level expertise—financial planning, capital raising, M&A support—without committing to a full-time executive compensation package that can easily exceed $300,000 annually in base salary alone.

For the CFOs themselves, the fractional model offers a different value proposition: the ability to work with multiple businesses simultaneously, often at higher effective hourly rates than traditional employment, while maintaining greater control over their schedules and client mix. It's a structure that appeals particularly to experienced finance executives who've already done the full-time grind and are looking for what comes next.

The CFO Leadership Council, which organized the session, has made fractional and interim finance leadership a recurring topic in its programming. The organization runs chapter-based events, conferences including its Spring and Fall gatherings, and specialized summits for manufacturing and private equity-backed companies. Its members span traditional full-time CFOs, controllers, and increasingly, finance leaders operating in fractional or interim capacities.

What remains unclear from the discussion is how the fractional model scales in practice. The economics work when a CFO can juggle three to five clients simultaneously, but the model assumes those relationships remain relatively stable and that the executive can truly context-switch between different companies, industries, and financial situations without dropping balls. For companies, the question is whether a CFO who's splitting attention across multiple businesses can truly provide the strategic partnership that boards and CEOs expect from their finance chief.

The session is part of a broader push by finance leadership organizations to address the changing nature of the CFO role itself. As finance functions become more technology-driven and strategic, the traditional career path—staff accountant to controller to CFO at a single company—is fracturing into multiple models, with fractional work representing one increasingly visible alternative.

For CFOs considering the shift, or companies weighing whether to hire fractional finance leadership, the key question isn't whether the model works in theory—it clearly does for some—but whether it works for their specific situation. That's a question that requires more than insider secrets; it requires honest assessment of what a finance function actually needs, and what a fractional arrangement can realistically deliver.