FD vs CFO: which do you actually need?
In the UK mid-market the titles blur, and businesses often use them differently. Structurally:
- Finance Director: owns the finance function end to end, usually reports to a Managing Director or CEO. Executional focus. In our experience, typically in businesses of £15m to £80m turnover.
- CFO: owns the function AND represents the business externally to investors, lenders and the board. Strategic focus. In our experience, typically in businesses of £50m turnover and above.
The right title for your business depends on the shape of the business and the shape of the person, not on the fashion of the moment. If the role has significant external-facing responsibility (investor updates, lender relationships, board narrative), it is usually a CFO role even if the business is smaller. If the role is primarily internal (running finance well, supporting the CEO, closing the books), it is usually an FD role even if the business is larger.
Deeper: Financial Controller vs Head of Finance and FC or Head of Finance: which does your function need.
When to hire an FD rather than a Group FC
In our experience, for businesses in the £15m to £30m turnover range, the sequencing that works is often:
- Group Financial Controller as the first senior finance hire, running close discipline and building process.
- Head of FP and A added 12 to 18 months later once the operational base is stable.
- FD title conferred when the business reaches the scale where a board-level finance voice is needed.
In our experience, businesses that hire straight to FD at £15m to £20m can find the FD miscast within a year: too senior for the operational reality, too under-scoped for the strategic mandate the title implies.
Deeper: When to hire a Group FC before a CFO.
What a strong FD shortlist looks like
The signals we test for at FD level differ from CFO level. Governance instinct still matters but less centrally. What matters more:
- Operational grip. The FD is closer to the operational finance work than a CFO. Grip on close, controls, audit, cash discipline is a first-tier requirement.
- Business partnering. The FD needs to work directly with the Commercial Director, COO, and other function heads on decisions with financial implications. Strong FDs enjoy this. Weak ones treat it as an interruption.
- Team building instincts. An FD who cannot articulate the shape of the team they will build below them in 12 months is a red flag.
- Reporting discipline. The FD owns the monthly board pack. The cleanest read is whether their prior pack was materially better than what they inherited.
Compensation for UK mid-market FDs
On the Finance Pay Index (56 UK Finance Director salaries, data to 16/10/2026), the median FD base is £118,000 and the middle half earn between £100,000 and £150,000, with a median bonus target of 15% of base. Treat it as a guide, not a rule: if you like someone and their ask is within a range you are comfortable with, pay it. Pay by size of business and location is in the free UK finance pay report.
How we run FD searches
Every search is run by a director, retained or contingent as agreed with you: we take the brief properly and check the package against the live Finance Pay Index, headhunt directly, present a shortlist of usually six to eight with our written view on each, and handle the offer and counter-offer risk. We take two references or support you in taking them, and check in through the first 90 days.
Across 149 of our placements, the median time from the first CV we sent to an offer was 19 days, with half landing between 11 and 29 days. See how a Harper May search works.
Talk to Harper May about your FD seat
Send us the brief. We will come back the same working day with a view on the market, the likely shortlist, and how we would run the search.
