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 — investor, lender and board — in a way that no other finance role does. A strong FD creates strategic clarity, investor confidence and commercial rigour. A poor hire at this level has consequences that extend well beyond the finance function and can take years to resolve.

This guide covers every stage of the Finance Director hiring process: defining the right profile, understanding the qualification and experience requirements, setting the salary correctly, running the search and interview process, and the common mistakes that lead to a failed FD hire.

Is a Finance Director What You Need?

Before briefing an FD search, it is worth establishing with precision whether a Finance Director is the right hire or whether a different role — a Financial Controller, a fractional FD, or an interim — better matches the current stage of the business.

A Finance Director is the right hire when the business’s primary finance need is strategic: managing investors, leading a fundraising process, providing board-level financial leadership, overseeing M&A activity, or building the financial infrastructure for the next phase of growth. If the primary need is operational — better management accounts, stronger financial controls, a more reliable close process — a Financial Controller is usually the right hire first.

A fractional Finance Director working one to two days per week is the right choice for businesses that need FD-level strategic input but cannot yet justify or afford a full-time FD appointment. This is common in businesses between £8m and £25m revenue where the CEO is managing the strategic finance function personally, an FC owns the operational finance, and a fractional FD provides the missing strategic 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 deal, a period of transition following an FD departure, or a business going through a turnaround. Interim FDs bring specific project experience and can start within two to three weeks, making them valuable when the permanent search timeline is incompatible with the urgency of the need.

The Finance Director Profile: What You Are Actually Hiring For

The FD profile varies significantly depending on the business context. A Finance Director at a £15m founder-led business plays a fundamentally different role from an FD at a £80m PE-backed platform. Being precise about the context before you write the brief will produce a significantly better shortlist.

Qualification. Finance Directors at SME and mid-market level are almost universally fully qualified accountants (ACA, ACCA or CIMA) with substantial post-qualification experience. ACA-qualified FDs are common in businesses with complex statutory reporting or transaction activity. CIMA-qualified FDs are well-represented in commercially oriented businesses where the management accounting and financial planning dimensions of the role are more prominent than the statutory compliance dimension. The qualification matters less at FD level than the depth and relevance of post-qualification experience — but it remains a baseline expectation. Verify qualification status through the ICAEW, ACCA or CIMA member directories before making an offer.

Experience level. An FD in a £10m–£30m business typically has eight to fifteen years of post-qualification experience, with a track record of operating at or near FD level in businesses of comparable size. An FD at a £50m PE-backed platform needs significantly deeper PE experience — investor reporting, covenant management, working with a PE sponsor’s operating team — alongside the technical finance capability. A candidate who has been an excellent FC at a similar-sized business but has never operated at FD level is a first step into the role, not a track-record continuation — assess them accordingly.

Statutory director appointment. In some businesses the FD is appointed as a statutory director and carries the legal duties and responsibilities that entails under the Companies Act 2006. Where this is the case, the FD needs to understand their duties (to promote the success of the company, to exercise reasonable care and skill, to avoid conflicts of interest) and should be appropriately insured under the company’s Directors’ and Officers’ liability policy. The FRC’s UK Corporate Governance Code provides further context on the governance responsibilities 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 implications in others. In a UK SME or owner-managed business, Finance Director is the standard title for the senior finance leader, whether or not they sit on the formal board of directors. CFO is increasingly used in PE-backed businesses, technology companies and internationally influenced businesses, typically to signal a seniority and strategic orientation at or above the standard FD level.

For the purposes of briefing a search, the title matters less than the scope. If the role requires board-level strategic leadership, external investor management and a track record of managing complex transactions, the title will be CFO in some businesses and FD in others — and the candidates who are right for the role will be the same either way. Candidates at this level assess the role substance rather than the title.

Salary Benchmarks for Finance Directors in 2025

Bonus structures at FD level are typically more significant than at FC level: 20–30% of base salary at target is standard in PE-backed businesses, with some structures reaching 50% or more where equity participation is included. Equity — in the form of EMI options, growth shares or direct co-investment — is common at FD level in PE-backed businesses and should be considered part of the total package when assessing competitiveness.

The Interview Process for a Finance Director

The FD interview process should be more extensive than the FC process, reflecting both the seniority of the appointment and the broader range of stakeholders who will work with or depend on the FD. A typical process includes:

Stage one — CEO and/or board sponsor: a 60–75 minute conversation covering the candidate’s background, track record in relevant business situations, and their approach to the strategic dimensions of the role. The most revealing questions at FD level probe the candidate’s experience of managing investor relationships, their approach to a fundraising or M&A process, and their view of the relationship between finance and commercial strategy.

Stage two — broader stakeholder panel: for a PE-backed business, this typically includes a representative from the PE sponsor. For an owner-managed business, it may include a non-executive director or a senior operational leader. The purpose is to assess cultural fit and the candidate’s ability to manage upward to investors and sideways to operational peers simultaneously.

Financial presentation: at FD level it is standard to ask candidates to prepare a short presentation — typically 15–20 minutes — on a commercially relevant topic. This might be their approach to the first 100 days in the role, their view of the key financial risks and opportunities facing the business based on information provided in advance, or their approach to a specific financial challenge relevant to the business context. The presentation tests strategic thinking, communication and preparation simultaneously.

References: take a minimum of two substantive references from line managers or board members in recent FD-level roles. At FD level, a conversation with a PE sponsor from a previous portfolio company, a CEO who the candidate reported to, or a non-executive director who worked alongside them is significantly more informative than a generic HR reference. Ask specifically about how the candidate managed investor relationships, how they handled 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 not the finance team — it is the board, the investors and the lenders. A strong FD candidate has specific, detailed examples of managing these relationships: presenting to a board under pressure, managing a covenant discussion with a lender, communicating a profit warning to a PE sponsor. Probe the specific situations, not the generic claim that they “manage board relationships effectively.”

2. Commercial judgement alongside technical depth. A strong FD is not a very experienced FC. They are a commercially oriented business leader who happens to have come through a finance route. Their finance technical skills are a foundation, not the primary expression of their value. Probe for examples of how their financial insight changed a commercial decision — a pricing change, a capital allocation, a strategic option — not just how they managed the reporting around it.

3. Experience managing through complexity and uncertainty. FD-level situations — fundraising, transactions, turnarounds, rapid growth — are inherently complex and often uncertain. A strong FD has examples of navigating genuinely difficult situations — not just delivering in benign conditions. Ask for their most difficult financial situation and how they managed it.

4. The FC relationship. Where the FD will be hiring, inheriting or working alongside a Financial Controller, their approach to that relationship matters significantly. An FD who tries to do the FC’s job, or who does not invest in the FC’s development, will disrupt the function rather than lead it. Ask how they have structured and managed the FD-FC relationship in previous roles.

5. Adaptability to business stage. An FD who has only worked in large, well-resourced finance functions may struggle in a £20m business where they are expected to be hands-on in the detail. An FD who has only worked in small businesses may not have the gravitas or investor-relationship experience needed in a sophisticated PE-backed environment. Probe for specific evidence that the candidate’s style and approach match the stage and culture of your specific business.

Further Reading

• Companies Act 2006: Directors’ General Duties — the statutory duties that apply to an FD appointed as a director of the company.
• FRC: UK Corporate Governance Code — governance standards relevant to board-level finance leadership in larger businesses.
• ICAEW: Finance Function Leadership — guidance on the role of the FD in leading and structuring the finance function.
• CIMA: Finance Transformation Research — research on how the FD role has evolved as businesses scale and what effective finance leadership looks like.