When a New CEO Arrives: What It Means for the CFO
A new CEO often brings a new CFO.
Not always. Many CFOs work well with a new CEO and stay for years. But the CFO is one of the roles most exposed when the CEO changes. The relationship between the CEO and CFO is close, and a new CEO often wants someone they know and trust in that seat.
If your CEO has just left, or a new one is about to start, the first months matter. How you handle them can decide whether you stay, leave on good terms or leave in a hurry.
This article covers why CFOs are exposed, how to handle the first 90 days, signs it is not working and how to plan your options quietly.
Why CFOs are exposed when CEOs change
There are several reasons:
Trust. The CEO and CFO must work closely. A new CEO may want someone they have worked with before.
The past. You may be linked to the previous CEO's decisions, good or bad.
Strategy. A new CEO may want a different kind of CFO, for example more commercial, more operational or more focused on growth or cost.
Board view. If the board was unhappy with the previous leadership, they may expect broader change.
Fresh start. Some new CEOs want to signal change by changing the executive team.
None of this is personal. But it is real, and it helps to be clear-eyed about it.
The first 90 days with a new CEO
The first three months set the tone. Focus on:
Being useful fast. Give the new CEO a clear, honest view of the business. Numbers, risks, opportunities and people. Do not wait to be asked.
Listening. Learn what the new CEO wants to achieve and how they like to work. Adjust your style if needed.
Being honest about the past. If there are problems, raise them early. A new CEO will find them anyway. Better they hear it from you.
Showing what you can add. Look for early wins that support the new CEO's priorities.
Supporting their relationship with the board. Help them understand the board's concerns and history, without taking sides.
For more on the CEO and CFO relationship, see the CFO and CEO relationship in interviews.
Showing value without defending the past
One of the hardest parts is how to talk about decisions made under the previous CEO. You may have supported them. You may have argued against them. Either way, the new CEO may want to change them.
Avoid:
Defending every past decision
Blaming the previous CEO
Saying "that is how we have always done it"
Instead:
Explain the context briefly and honestly
Show what you learned
Offer options for the future
"We expanded into Queensland because of strong demand at the time. Results have been below plan for two years. Here are three options, with the numbers for each."
That approach shows judgement and loyalty to the business, not to the old regime.
Signs it is not going to work
Watch for:
You are left out of key meetings or decisions
The new CEO goes around you to your team
Your advice is regularly ignored
The new CEO brings in advisers or consultants to review finance
Board members become distant
You hear about a former colleague of the CEO who might be joining
One sign alone may mean nothing. Several together usually mean the CEO is planning a change.
Planning your options quietly
If you sense it is not working, start planning. You do not need to leave immediately. But you should be ready.
Update your resume. Make sure it is current and strong.
Refresh your LinkedIn. Quietly. See updating LinkedIn without notifying your network.
Talk to trusted search consultants. Let them know you may be open to a conversation.
Reconnect with your network. Former colleagues, directors and advisers.
Know your contract. Notice period, termination terms and any incentive implications.
For more on searching while employed, see confidential executive job search.
Talking to the new CEO directly
Sometimes the best option is a direct, honest conversation. After a few months, ask the new CEO how they see your role and the finance function. Ask what they need from you.
If they are unsure, ask what would change their view. If they want a change, it is better to know early, so you can plan an orderly exit on good terms.
Leaving well if it comes to that
If the decision is that you will leave, how you go matters for your reputation and references.
Negotiate the exit calmly. Notice, payment, incentives, reference and announcement.
Agree the story. A shared, positive explanation for your departure.
Hand over well. Support the transition. Your successor and the board will remember.
Protect relationships. Directors, auditors and bankers may be future referees or connections.
See executive exit agreements, references and announcements.
How to explain it later
In your next interview, you will be asked why you left. Keep it simple and neutral.
"A new CEO joined with a different view of the finance role and wanted to bring in someone they had worked with before. We agreed a transition and I supported the handover. It has given me the chance to look for a role where I can lead finance through a growth phase."
That answer is honest and does not blame anyone.
When it goes well
Many CFOs build an excellent relationship with a new CEO. If that happens, it can be one of the best periods of your career. A new CEO often brings energy, new strategy and new opportunities. Being the CFO who helped them succeed is a strong story for your next role.
"Partnered with a new CEO through a strategic reset, including the exit of two divisions and a $50 million investment program, lifting EBIT by 35% in two years."
How the board sees it
Boards watch the CEO and CFO relationship closely, especially in the first year. If you handle the transition well, directors often see it as a sign of maturity and judgement. That view can follow you to your next role, or to a board seat later. If you handle it badly, by resisting, complaining or going around the new CEO, directors notice that too.
A quick self-check
Ask yourself three questions in the first month: Have I given the new CEO an honest view of the business? Do I know their top three priorities? Have I found one way to help with each? If the answer to all three is yes, you are in a strong position.
What the board expects of you
During a CEO change, the board often relies heavily on the CFO. You may be the main source of continuity, especially if there is an acting CEO for a period. Directors will watch how you support the new CEO and whether you stay steady.
Keep the board informed through the proper channels. Do not use the transition to build a separate line to directors that goes around the new CEO. That damages trust quickly. If the chair asks for your view, be honest and balanced, and tell the CEO you have spoken with the chair.
Your next step
If a new CEO has just started, write down their three top priorities and one way you can help with each. Then make sure your resume is up to date, just in case.
If you want help preparing for a possible move, my CFO resume writing is built for senior finance leaders across Australia and New Zealand.
If you are unsure where you stand with a new CEO, book a complimentary Clarity Session.
