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 executives as companies reassess their leadership structures, according to Michaella Gallina, a veteran in the space who recently shared insights on navigating this emerging career path.

Speaking on the CFO Leadership Council's platform, Gallina outlined what she describes as "insider secrets" for finance professionals considering fractional roles—a model where CFOs work with multiple companies simultaneously rather than serving one employer full-time. The discussion comes as finance leaders face mounting pressure to demonstrate value while organizations scrutinize executive compensation and headcount.

The fractional model represents a significant departure from traditional CFO career trajectories. Instead of climbing the ladder at a single company, fractional CFOs typically serve multiple clients—often smaller businesses or growth-stage companies that need senior financial expertise but can't justify a full-time executive salary. (Think of it as the Uber-ification of the C-suite, except with substantially more spreadsheets and fewer surge pricing complaints.)

Gallina's presentation, hosted by CFO Leadership Council—a membership organization serving over 2,500 CFOs and finance leaders—addresses what many in the profession are quietly wondering: whether the fractional path offers genuine career advancement or merely represents a euphemism for consulting work between full-time gigs.

The timing is notable. As companies increasingly deploy AI tools for routine financial tasks and private equity firms push portfolio companies toward leaner operating models, the traditional full-time CFO role is evolving. Some finance leaders are finding that serving multiple smaller companies simultaneously can offer both financial upside and operational variety that a single employer cannot match.

Here's the thing everyone's missing: the fractional model isn't just about CFOs seeking flexibility. It's also about companies trying to access senior financial talent without the full freight of executive compensation packages. A mid-market company that balks at a $300,000 base salary plus equity for a full-time CFO might happily pay $8,000 monthly for 20 hours of fractional CFO time—even if the math works out similarly on an hourly basis. (The psychology of expense categorization remains, as always, fascinating.)

The CFO Leadership Council, which organized the discussion, offers NASBA-approved continuing professional education credits for members attending eligible events, suggesting the organization views fractional CFO work as a legitimate professional development path rather than a stopgap measure.

What remains unclear from Gallina's presentation is how fractional CFOs navigate the inherent conflicts of serving multiple companies simultaneously, particularly if those companies operate in similar industries or compete for the same capital sources. The model also raises questions about depth of engagement—whether a CFO working 20 hours monthly can truly understand a company's financial nuances the way a full-time executive would.

For finance leaders considering the transition, the key question isn't whether fractional work is respectable—it clearly is—but whether it matches their specific career goals and risk tolerance. The model offers flexibility and potentially higher hourly rates, but sacrifices the equity upside and strategic influence that come with full-time executive roles at high-growth companies.

As one CFO recently put it: "You're trading ownership for optionality." Whether that's a good trade depends entirely on which side of 50 you are, and whether you've already had your equity windfall.