Fractional CFO Model Gains Traction as Finance Leaders Seek Flexibility, Industry Veteran Says

Fractional CFO Model Gains Traction as Finance Leaders Seek Flexibility, Industry Veteran Says

The fractional CFO market is attracting increased attention from finance professionals as companies reassess their leadership structures, according to Michaella Gallina, a veteran in the space who recently shared insights on navigating the model's unique challenges.

Speaking in a recent interview, Gallina outlined what she characterized as "insider secrets" to succeeding in fractional CFO roles—a growing segment of the finance labor market where executives split their time across multiple client companies rather than serving one employer full-time. The discussion, hosted by CFO Leadership Council's Strategic CFO 360 platform, comes as finance leaders increasingly explore alternatives to traditional full-time executive positions.

The fractional model has emerged as a response to several market pressures. Smaller companies and startups often need senior financial expertise but lack the budget or workload to justify a full-time CFO salary, which can exceed $300,000 annually at mid-sized firms. Meanwhile, experienced finance executives are seeking greater control over their schedules and client portfolios, particularly those who've spent decades in high-pressure corporate roles.

Gallina's insights arrive at a moment when the finance function itself is being redefined. CFOs are no longer purely financial stewards—they're expected to drive technology adoption, manage investor relations, and increasingly, oversee AI implementation strategies. This expanded mandate makes the fractional model both more complex and potentially more valuable, as companies can tap specialized expertise without committing to permanent hires.

The discussion touched on the practical realities of managing multiple client relationships simultaneously, a balancing act that requires different skills than traditional CFO work. Fractional executives must rapidly assess company situations, deliver value quickly, and maintain boundaries that prevent any single client from consuming disproportionate time—all while managing the business development required to maintain a steady pipeline of engagements.

For CFOs considering the transition, the model represents both opportunity and risk. The upside includes schedule flexibility, exposure to diverse industries, and potentially higher effective hourly rates than salaried positions. The downside involves income volatility, the constant need to prove value, and the challenge of maintaining deep institutional knowledge across multiple organizations.

The CFO Leadership Council, which hosted the discussion, represents a community of over 2,500 finance executives and regularly convenes members to discuss emerging trends in the profession. The organization's focus on fractional CFO dynamics reflects broader questions facing the finance function: as companies become more cautious about fixed costs and executives seek greater autonomy, will the traditional full-time CFO role remain the dominant model?

What remains unclear is whether the fractional trend represents a fundamental shift in how companies staff their finance leadership or merely a cyclical response to current economic conditions. The answer will likely depend on how well fractional CFOs can demonstrate sustained value compared to their full-time counterparts—and whether companies can effectively manage the complexity of shared executive attention.