Fractional CFO Market Draws Finance Veterans as Companies Seek Flexible Leadership

The fractional CFO model—where finance executives split their time across multiple companies—is gaining traction among mid-market firms looking for C-suite expertise without full-time compensation packages, according to insights shared by Michaella Gallina in a recent CFO Leadership Council discussion.

The trend reflects a broader shift in how companies structure their finance functions, particularly as economic uncertainty pushes boards to scrutinize every senior hire. For sitting CFOs, it's also creating a new question: whether the traditional full-time role remains the only path to the top of finance.

Gallina, speaking to the CFO Leadership Council's member community of 2,500+ finance leaders, outlined what she's learned building a fractional practice—the kind of operational detail that doesn't make it into the LinkedIn posts about "portfolio careers" but matters considerably more when you're actually trying to bill clients and manage multiple close calendars simultaneously.

The fractional model isn't new, exactly. Consultants have been parachuting into finance departments for decades. What's different now is the expectation of ongoing leadership rather than project work—fractional CFOs are expected to own the function, make hiring decisions, present to boards, and generally do everything a full-time CFO does, just compressed into two or three days a week per client.

Which sounds straightforward until you're trying to be in two budget meetings on the same Tuesday morning, or your clients all decide to raise capital in the same quarter. (They will. It's a law of nature, apparently.)

The CFO Leadership Council session, part of the organization's ongoing programming for finance executives, comes as the group expands its networks beyond traditional full-time CFOs to include fractional practitioners and controllers. The organization offers NASBA-approved continuing education credits for members attending eligible events, reflecting the professionalization of what was once a more informal consulting niche.

For finance leaders considering the fractional path, the appeal is obvious: higher effective hourly rates, exposure to multiple industries, and the ability to avoid the parts of the CFO job that don't involve actual finance (like sitting through three-hour executive team meetings about the new office space). The challenges are less discussed but equally real—managing client expectations when you're not physically present, maintaining deep enough context to make good decisions quickly, and avoiding the appearance that you're just a very expensive bookkeeper.

The broader question for finance departments is what the rise of fractional CFOs signals about the role itself. If companies can get 80% of CFO value for 40% of the cost, what does that say about what CFOs actually do all day? It's the kind of question that makes full-time CFOs slightly uncomfortable, which is probably why it's worth asking.

The CFO Leadership Council, which hosts spring and fall conferences along with its Finance & Accounting Technology Expo, has made fractional and interim finance leadership a recurring topic in its programming. The organization's chapter communities, which operate in multiple cities, provide in-person networking for both traditional and fractional practitioners.

What remains unclear is whether fractional CFO work represents a permanent structural change in how companies buy finance leadership, or just a recessionary phenomenon that disappears when hiring budgets loosen. Gallina's willingness to share operational details suggests she's betting on the former. The CFOs listening are presumably trying to figure out if they should be worried—or intrigued.