The CFO and the Chair: Building the Relationship That Protects You
Most CFOs focus their energy on the CEO. That makes sense. The CEO is their manager and closest partner.
But CFOs who manage only up to the CEO can get caught out. The board chair matters too. The chair leads the board that oversees the CEO and the CFO. In many businesses, the chair has a direct say in whether a CFO is appointed, kept or replaced.
A strong, appropriate relationship with the chair can protect you, strengthen your influence and help your future board career. A poor relationship, or one that undermines the CEO, can do the opposite.
This article covers why the relationship matters, how to keep the CEO in the loop, how to stay in regular contact without going around anyone, how to handle bad news and what to do when the CEO and chair disagree.
Why the chair relationship matters
Trust in the numbers. The chair needs to trust the financial information the board receives.
Early warning. The chair wants to hear about serious issues before the board meeting.
Succession. If the CEO leaves suddenly, the chair will rely on the CFO for stability.
Your role. The chair often has a strong say in decisions about the CFO.
Your future. Chairs are well connected. Their view of you travels.
Keeping the CEO in the loop
The golden rule: never let the chair relationship feel like a way around the CEO.
Agree with the CEO how and when you will speak with the chair
Tell the CEO about every conversation with the chair
Never share views with the chair that you have not shared with the CEO
If the chair contacts you directly, let the CEO know straight away
If the CEO trusts that you are transparent, the chair relationship strengthens the whole leadership team. If not, it damages your relationship with the CEO, often permanently.
Regular contact without going around anyone
Many CFOs have a regular, short catch-up with the chair, often before board meetings. Typical topics:
The upcoming board papers
Key financial issues and risks
Audit and control matters
Any questions the chair has
Keep these meetings focused and short. Invite the CEO to join, or brief them afterwards. Some CEOs prefer to attend. Others are comfortable with the CFO meeting the chair alone. Agree what works.
Bad news and the chair
When serious bad news arises, such as a profit downgrade, a covenant risk, a fraud or a major error, the chair needs to know quickly.
Usually, the CEO tells the chair, with the CFO present or providing the detail. Agree this approach in advance, so you are not deciding in the moment.
In rare cases, if you believe the CEO is not informing the board of something serious, you may need to raise it with the chair or audit committee chair directly. This is a significant step. Take care, keep records and, where appropriate, seek advice.
When the CEO and chair disagree
Sometimes the CEO and chair disagree on strategy, numbers or people. The CFO can feel caught in the middle.
Stay neutral. Give both the same facts.
Do not take sides. Even if you agree with one of them.
Encourage them to talk directly. You are not the messenger.
Focus on the numbers. Provide clear, accurate information for the board to decide.
If the conflict continues, it may become a governance issue for the board. Your job is to stay professional and protect the integrity of the information.
How this helps your board career later
A strong relationship with a chair can help your future board career. Chairs often:
Recommend strong CFOs for non-executive roles
Act as referees for board applications
Introduce you to search consultants who fill board seats
Give you insight into how boards really work
Treat the relationship with respect over many years, even after one of you moves on. See CFO to board director and first meeting with the board chair.
Common mistakes
Building a separate relationship with the chair that excludes the CEO
Telling the chair things you have not told the CEO
Surprising the chair in a board meeting
Taking sides in CEO and chair disagreements
Ignoring the chair entirely
Showing it on your resume
You do not need to name the chair. Show the relationship through outcomes. “Briefs the chair and audit committee chair before each board meeting on finance, risk and audit matters.” This signals board trust and maturity.
Interview preparation
CFO interviews often include a meeting with the chair. Expect questions such as:
How do you work with a board chair?
Tell us about a time you had to deliver bad news to the board.
How do you handle a disagreement between the CEO and the board?
Prepare clear, balanced answers.
How search consultants view this relationship
When I was in executive search, chairs were often my most important source of insight about a CFO. A chair who spoke warmly about a CFO’s honesty and judgement could make a candidate. A chair who described a CFO as “a bit political” could quietly end their chances.
Your profile
If you have strong board relationships, show it. “CFO trusted by the CEO and board, with regular briefings to the chair and audit committee chair and a record of no surprises.”
A quick self-check
Ask yourself: does my CEO know about every conversation I have with the chair? If the answer is anything but yes, fix it this week.
When the chair is new
A new chair brings a reset. Meet them early, with the CEO’s agreement. Ask how they like to work, what they see as the key risks and how they want to receive financial information. A new chair often relies heavily on the CFO in their first months. Being useful then builds lasting trust.
When you are new
If you are a new CFO, the chair will form a view of you quickly. Meet them before your first board meeting. Listen more than you speak. Ask what they want from the CFO in the first year.
The audit committee chair as well
The chair is not the only important director. The audit committee chair often has the closest working relationship with the CFO. Build both relationships, in the same transparent way.
Boundaries
Keep the relationship warm but professional. Some social contact is fine, but avoid becoming the chair’s personal confidant on matters outside your role. That can create awkward positions with the CEO and other directors.
A quick tip
After each chair meeting, send the CEO a two-line summary. It takes a minute and removes any doubt about transparency between the three of you.
Your LinkedIn
Many chairs are active on LinkedIn. A thoughtful, occasional comment on their posts keeps the relationship warm without crossing any professional lines.
Your next step
If you do not have a regular line to the chair, talk to your CEO about setting up a short catch-up before each board meeting, with the CEO present or briefed afterwards.
If you want help positioning your board experience for your next role, my CFO resume writing is built for senior finance leaders across Australia and New Zealand.
If you want to talk through a tricky board relationship, book a complimentary Clarity Session.
