How to Hire a Finance Director

Hiring a Finance Director is one of the highest-stakes appointments a CEO or board makes. The FD sits at the intersection of financial management, commercial strategy and external relationships (investors, lenders and the board) in a way that no other finance role does. A poor hire at this level has consequences well beyond the finance function and can take years to put right.

This guide covers each stage: deciding whether an FD is the right hire, the profile, salary, the search and interviews, and the mistakes that most often lead to a failed appointment.

A note on who does what. Finance Director searches are run jointly with our sister firm FD Capital, which specialises in FD, CFO, interim FD and fractional FD appointments. Accountancy Capital, part of the same group, recruits the team beneath the FD: Financial Controllers, Finance Managers, FP&A and qualified accountants. Our Finance Director recruitment page explains how the two firms work together on a single brief.

Is a Finance Director What You Need?

Before briefing an FD search, establish whether a Finance Director is the right hire or whether a Financial Controller, a fractional FD or an interim better matches the current stage of the business. A useful test: a Financial Controller makes sure the numbers are right, while a Finance Director decides what the business should do with them.

A Finance Director is the right hire when the primary finance need is strategic: managing investors, leading a fundraising, providing board-level financial leadership, overseeing M&A, or building the financial infrastructure for the next phase of growth. If the primary need is operational (better management accounts, stronger controls, a more reliable close), a Financial Controller is usually the right first hire. Our guide to Financial Controller vs Finance Director: when to hire sets out the decision in more detail, and how to hire a Financial Controller covers that search if it turns out to be the better answer.

A fractional Finance Director working one to two days a week suits businesses that need FD-level strategic input but cannot yet justify a full-time appointment. It is common at roughly £8m–£30m revenue, where an FC owns operational finance, the CEO has been covering strategic finance personally, and a fractional FD provides the missing layer at a proportionate cost.

An interim Finance Director is the right choice when the need is specific and time-limited: a fundraising round, a PE transaction, a gap after an FD departure, or a turnaround. Interim FDs bring relevant project experience and candidates can usually be put forward within days, which matters when a permanent search timeline does not fit the urgency.

The Finance Director Profile: What You Are Actually Hiring For

The FD profile varies with context. A Finance Director at a £15m founder-led business plays a fundamentally different role from an FD at an £80m PE-backed platform. Being precise about the context before you write the brief produces a much better shortlist. Our guide to what a Finance Director is covers the range of scope the title can carry.

Qualification

Finance Directors at SME and mid-market level are almost always fully qualified accountants (ACA, ACCA or CIMA) with substantial post-qualification experience. ACA is common where statutory reporting or transactions are complex; CIMA where management accounting and planning dominate. At FD level the qualification matters less than the depth and relevance of experience, but it remains a baseline expectation. Verify membership through the ICAEW directory, ACCA or AICPA & CIMA before making an offer.

Experience level

An FD in a £10m–£30m business typically has eight to fifteen years of post-qualification experience and a track record at or near FD level in businesses of comparable size. An FD at a larger PE-backed business needs deeper sponsor experience (investor reporting, covenant management, working with the fund’s operating team) alongside the technical capability. An excellent FC who has never operated at FD level is taking a first step, not continuing a track record. What boards look for in a Finance Director is a useful companion read.

Statutory director appointment

In some businesses the FD is appointed a statutory director and carries the legal duties that entails under the Companies Act 2006 general duties: to promote the success of the company, exercise reasonable care, skill and diligence, and avoid conflicts of interest. Where this applies, confirm the appointment is covered by the company’s directors’ and officers’ liability policy. For larger and listed businesses, the FRC’s UK Corporate Governance Code sets out the wider governance expectations of board-level finance leaders.

The FD vs CFO Distinction

The titles Finance Director and CFO are used interchangeably in many UK businesses but carry different signals in others. In owner-managed and mid-market businesses, Finance Director is the standard title for the senior finance leader, whether or not they sit on the statutory board. CFO is more common in PE-backed, technology and listed businesses, typically signalling a strategic, investor-facing scope at or above standard FD level.

For briefing purposes, scope matters more than title: the right candidates assess the substance. Our comparison of Finance Director vs CFO explains when each title fits.

Salary Benchmarks for Finance Directors

Typical base salary ranges for permanent UK FD roles by business context and region, with typical interim day rates and fractional retainers.

Bonuses at FD level are more significant than at FC level: PE-backed FD packages typically include target bonuses of around 20–35% of base, and some funds add co-investment or management equity. Remember too that the all-in cost of a permanent FD is well above base salary once employer’s National Insurance (15% from April 2025), pension and benefits are added; a London FD on a typical package often costs £120,000–£200,000 all-in. The UK Finance Director salary guide breaks the figures down further.

Writing the Brief and Running the Search

The most useful investment a board can make in an FD search is a specific brief. “We need a strong FD” produces a generic shortlist. “We need a Finance Director who will own the PE reporting cycle, build the long-range model for a funding round in eighteen months and develop the FC to own the board pack within a year” produces a targeted one. A good brief covers what the FD owns on day one, the most important relationship they must manage (CEO, sponsor, bank or board), what success looks like at twelve months, the team they inherit and the package. Our Finance Director job description gives a template.

Strong FD candidates are rarely on the open market. Most are in post, not actively looking, and assess an approach on the quality of the investor relationship, the team they would inherit, whether the CEO genuinely wants financial challenge and where the business is heading. That is why FD searches are run as headhunted searches through FD Capital’s Finance Director network rather than advertised alone.

For a permanent FD, a shortlist typically follows within one to two weeks of an agreed brief, and the overall timeline from brief to offer is typically eight to twelve weeks. Start dates are often several months away because FD notice periods are commonly two to three months. An interim FD can provide continuity while the permanent search runs in parallel; interim and fractional engagements through a limited company need an assessment under the off-payroll working (IR35) rules.

The Interview Process for a Finance Director

The FD process should be more extensive than an FC process, reflecting the seniority of the appointment and the wider range of stakeholders who will rely on the FD. Our list of interview questions to ask when hiring a Finance Director gives question sets for each.

Stage one: CEO or board sponsor

A 60–75 minute conversation covering background, track record in comparable situations and approach to the strategic side of the role. The most revealing questions probe experience of managing investors, running a fundraising or M&A process, and the relationship between finance and commercial strategy.

Stage two: wider stakeholder panel

In a PE-backed business this usually includes a representative of the sponsor; in an owner-managed business, a non-executive director or senior operational leader. The aim is to test the candidate’s ability to manage upwards to investors and sideways to operational peers. What PE investors actually expect from an FD is worth reading before the sponsor meeting.

Presentation

At FD level it is standard to ask for a 15–20 minute presentation on a relevant topic: the first 100 days, the key financial risks and opportunities based on information shared in advance, or a specific challenge the business faces. Our guide to the Finance Director’s first 100 days is a good basis for setting the brief.

References

Take at least two substantive references from line managers or board members in recent FD-level roles. A former PE sponsor, CEO or non-executive tells you far more than an HR reference. Ask specifically how the candidate handled investors, a difficult situation, and what they would do differently.

The Five Competencies That Distinguish Strong FD Candidates

1. Board and investor communication

The FD’s primary audience is the board, investors and lenders, not the finance team. Strong candidates have specific, detailed examples: presenting to a board under pressure, managing a covenant discussion with a lender, communicating a profit warning to a sponsor.

2. Commercial judgement alongside technical depth

A strong FD is not simply a very experienced FC. They are a commercially minded business leader who came through a finance route. Probe for examples where their financial insight changed a commercial decision (a pricing change, a capital allocation, a strategic option), not just how they reported on it.

3. Managing through complexity and uncertainty

Fundraisings, transactions, turnarounds and rapid growth are inherently uncertain. A strong FD has navigated genuinely difficult situations, not just delivered in benign conditions. Ask for their most difficult financial situation and how they handled it.

4. The FC relationship

Where the FD will hire, inherit or work alongside a Financial Controller, their approach to that relationship matters. An FD who does the FC’s job, or does not invest in the FC’s development, disrupts the function rather than leading it. Ask how they have structured the FD–FC split in previous roles.

5. Adaptability to business stage

An FD from large, well-resourced functions may struggle in a £20m business where they must be hands-on. An FD from small businesses may lack the investor experience a sophisticated PE environment demands. Look for specific evidence that the candidate’s style matches your stage and culture.

Common Mistakes When Hiring a Finance Director

• Hiring an FD when the real gap is operational, so the FD spends the week doing a Financial Controller’s job.
• Promoting a strong FC into an investor-facing role before they are ready, without support.
• A vague brief that attracts FCs at the top of their current role rather than genuine FD-level candidates.
• Pitching the salary below market, then losing the preferred candidate to a counter-offer.

Building the Team Beneath the FD

A new FD’s first months often expose gaps below: a close that depends on one person, no FP&A capability, or an FC stretched across too many entities. This is where Accountancy Capital comes in. While FD Capital handles the FD appointment, we recruit Financial Controllers, Finance Managers, FP&A, financial and management accountants across the UK, permanent, interim and fractional, with permanent shortlists typically within one to two weeks and interim or fractional candidates within days. See how to hire a Finance Manager and building a finance team around a Financial Controller.

Frequently Asked Questions

How much does a Finance Director cost?

Typically £73,000–£130,000 base for a first FD above an FC at a £10m–£25m business depending on region, rising to £145,000–£205,000 for a London Group FD. PE-backed roles usually pay a premium at the same scale, plus bonus and sometimes equity.

How long does it take to hire a Finance Director?

A permanent shortlist typically follows within one to two weeks of an agreed brief, with eight to twelve weeks from brief to offer. Interim or fractional FD candidates can usually be put forward within days.

Who runs the search?

FD searches run jointly with our sister firm FD Capital. Accountancy Capital recruits the finance team beneath the FD. Both are part of FD Capital Group, so one brief covers both.

How do you charge?

Fees depend on whether the role is permanent, interim or fractional and are agreed in writing before a search starts. Call 0204 553 8893 or email recruitment@accountancycapital.co.uk.

Further Reading

• Companies Act 2006: scope of directors’ general duties — the statutory duties that apply to an FD appointed as a director.
• FRC: UK Corporate Governance Code — governance standards relevant to board-level finance leadership.
• ICAEW: business and management — guidance on finance function leadership and structure.