The CFO Conundrum: Reflections on remuneration of private equity CFOs

Our Remuneration, Equity and Outlook Report for PE CFOs has been collecting data across the industry annually since 2017. The objective of this report has always been to provide a concise, current view of the opportunities and challenges faced by CFOs working in portfolio businesses, as well as to give clear guidance around compensation expectations. As we continue to develop the survey each year, we build increasingly valuable insights into the evolving landscape of the private equity CFO. Here, Managing Director Jack Lane explores what these trends tell us about the evolution of the CFO role and what that means for those looking to build success in their career as finance leaders.

For investors and executives alike, data collected in our annual survey paints a picture of the pressures and expectations faced by CFOs navigating an increasingly complex market, where attracting and retaining top-tier talent is critical to portfolio success and understanding the dynamics of remuneration and market sentiment is key to staying competitive.

We have ridden something of a macroeconomic rollercoaster since 2019. Brexit, Covid, post-Covid tech boom. Softened debt market, buy-and-build frenzy, buy-out bonanza. Russia’s invasion of Ukraine, geopolitical tensions, shifts in power. Rising inflation, increased debt costs and decreasing consumer confidence. Now Trump re-elected and Starmer leading the first Labour government since 2010. It’s no secret that many private equity firms have enjoyed immense success during this period but, broadly, the industry has faced tumultuousness like never before. It should come as no surprise then, that these challenges have been felt most acutely by the executives leading their portfolio companies.

Here, we reflect on the data from the last six years and the shifts in the trends over a particularly challenging horizon. With input from a number of leaders and expert private equity professionals, this analysis provides great insight into the evolution of the CFO role.

To read our full analysis, click here

To view the 2024 CFO Remuneration Report in full, click here.