The CFO Talent Shortage Is Reaching a Breaking Point

As economic complexity rises and deal activity remains elevated, the demand for senior finance leadership is colliding with a shrinking supply of qualified executives. What was once a cyclical hiring challenge is becoming a structural constraint for companies across industries. Leo Cummings, an associate at Hunt Scanlon Ventures, examines why the CFO shortage is intensifying – and how organizations are responding.

According to global talent advisor ZRG, the shortage of chief financial officers and their finance teams is reaching epic proportions as we head into another busy year of executive recruiting.

With market complexity increasing, CFOs are in high demand, yet the supply of qualified candidates is dwindling. This shortage is being driven by a convergence of demographic shifts, evolving role expectations, and sustained deal activity –leaving companies scrambling to fill critical leadership positions.

“This is no longer just a tight labor market — it is a structural leadership gap,” said Leo Cummings, an associate at Hunt Scanlon Ventures. “Finance leaders are being asked to do more, faster, and under greater scrutiny, all at a time when the bench is thinning.”

Why the CFO Pipeline Is Shrinking

The CFO shortage, says ZRG, can be traced to several interrelated factors, each amplifying demand for skilled financial leadership.

For starters, baby boomer CFOs are retiring at an accelerating pace, creating a leadership vacuum. Seasoned financial leaders are exiting the workforce — and with fewer up-and-coming executives prepared to step into their shoes — the pool of experienced candidates is shrinking quickly. As more CFOs retire, the gap between supply and demand continues to widen.

“At many organizations, succession plans haven’t kept pace with demographics,” Mr. Cummings noted. “The CFO role has evolved faster than the pipelines feeding it.”

According to a McKinsey report, the role of the CFO has also expanded dramatically over the past decade. Today’s CFOs are no longer just financial gatekeepers; they are responsible for driving strategy, navigating complex regulatory environments, and leading digital transformation initiatives.

“The CFO role has evolved faster than the pipelines feeding it.”

As a result, companies are seeking CFOs with broader skill sets that include operational leadership, technology adoption, and risk management expertise — making truly well-rounded candidates harder to find, says ZRG.

“The modern CFO is effectively a co-strategist to the CEO,” said Mr. Cummings. “That raises the bar significantly, but it also narrows the field.”

Private Equity Is Fueling Demand

The private equity market has added another layer of pressure. Bain & Company reports that PE deal activity reached record levels in recent years, and the trend shows little sign of slowing.

CFOs operating in PE-backed environments are expected to manage complex transactions, oversee rapid scaling, and navigate high-stakes exits — capabilities that require deep M&A experience and financial sophistication.

“Finance leaders are being asked to do more, faster, and under greater scrutiny, all at a time when the bench is thinning.”

“Private equity has raised expectations for CFOs across the board,” Mr. Cummings said. “Those skill sets don’t appear overnight, and the supply simply hasn’t caught up.”

As a result, CFOs have become among the most sought-after executives in the market. McKinsey notes that the average time required to fill a CFO role is increasing, prompting companies to explore alternative solutions.

The Finance Function Feels the Strain

The talent gap extends well beyond the CFO role itself. Shortages across the broader finance function are placing mounting pressure on existing teams, and that is slowing financial reporting, forecasting, and planning efforts.

McKinsey’s research on the future of work in finance indicates that automation and AI have fundamentally shifted the skill sets required.

Demand is rising for finance professionals who can leverage data analytics and automation tools, but many organizations struggle to find talent with those capabilities, says ZRG.

“As expectations expand and teams remain understaffed, burnout becomes inevitable,” said Mr. Cummings. “That compounds the problem by increasing attrition at precisely the wrong time.”

How Companies Are Responding

While the CFO talent gap presents clear challenges, ZRG notes that companies are taking proactive steps to mitigate the impact.

Interim CFOs are emerging as a flexible solution for organizations that need immediate financial leadership. According to CFO.com, demand for interim CFOs has increased by more than 100 percent year over year as companies manage transitions while continuing searches for permanent leadership.

“Companies that treat finance leadership development as a long-term investment are putting themselves in a stronger position.”

Developing internal talent pipelines is also gaining traction. By investing in upskilling mid-level finance professionals, organizations are creating more sustainable paths to future CFO readiness.

“Companies that treat finance leadership development as a long-term investment are putting themselves in a stronger position,” Mr. Cummings said.

Compensation strategies are evolving as well. Bain & Company notes that beyond salary, options like flexible working arrangements, equity participation, and wellness programs are increasingly critical components of the modern CFO value proposition.

Technology investment is another lever. Automating routine finance tasks can relieve pressure on teams and attract tech-savvy finance professionals who want to work with advanced tools rather than manual processes.

What is the Future Outlook for a CFO?

The CFO shortage is expected to persist into 2026 and beyond, with McKinsey forecasting that demand for financial leadership will continue to outstrip supply. Companies are likely to rely more heavily on interim and fractional CFOs, alongside aggressive internal development strategies, to navigate the gap.

“Organizations that invest early — in people, technology, and flexibility — will be the ones that stabilize and compete most effectively,” Mr. Cummings said. “Those that wait will find the CFO shortage turning into a material business risk.”