The two reference questions that predict CFO success best are these: "Tell me about a time this person delivered bad news to you, and how they did it," and "Would you hire them again for a role harder than the one they did for you?" The first tests judgement and candour under pressure. The second forces the referee to place a real bet rather than offer a polite endorsement.
Most reference calls fail because they ask questions that only invite agreement. "Were they good with numbers?" "Did they hit their deadlines?" A referee who agreed to take the call is already inclined to be kind. Soft questions produce soft answers, and you learn nothing you did not already assume from the CV.
The two questions above work because they are hard to answer with a reflex. They require a story, and stories are where the truth lives.
Why "how did they deliver bad news" tells you more than any competency
Every CFO will, at some point, have to walk into a room and tell the CEO or the board something they do not want to hear. Cash is tighter than the model said. The forecast was wrong. A key customer is leaving. The acquisition is not performing.
How a finance leader handles that moment predicts almost everything that matters. It reveals whether they hoarded the problem or surfaced it early. Whether they arrived with a diagnosis and options, or just the panic. Whether they protected their own reputation or protected the business.
When you ask a referee for a specific example, listen for three things. Did the CFO see it coming, or were they surprised by their own numbers? Did they tell the truth before it was forced out of them? And did they come with a plan, or only a confession?
The weak version of this answer is vague. "They were always honest." Push for the actual event. A strong referee will remember it clearly, because bad news well handled is memorable, and bad news badly handled is worse.
In our experience placing senior finance leaders across mid-market and PE-backed businesses, the CFOs who fail rarely fail on technical skill. They fail because they went quiet when they should have spoken. This question surfaces that pattern before you inherit it.
Why "would you hire them again for something harder" beats any rating
Asking a referee to rate someone out of ten is close to useless. Almost everyone lands between seven and nine. The scale is polite, not honest.
So instead, make the referee commit. "Knowing what you know, would you hire this person again for a role more demanding than the one they held for you?" This changes the physics of the conversation. It asks them to put their own judgement on the line, in the future tense, for a bigger job.
The hesitation is the signal. A referee who says "yes, without question, and here is why" is giving you real conviction. A referee who says "well, it would depend on the situation" has just told you something important, and you should ask them to keep talking.
The phrase "for something harder" matters. A CFO who was excellent in a stable, well-funded business may not be the person you want for a turnaround, a refinancing, or a fast integration. By naming a harder brief, you test whether the referee believes this person has another gear, or whether they were operating at their ceiling.
This is especially useful when the role you are hiring for is a step up. Many candidates have done the title before but not at your scale, pace or level of scrutiny. This question asks the one person who watched them closely whether the step up is realistic.
How to run the call so the answers are honest
Good questions still need the right conditions. Reference calls work best by phone or video, never by email, because you need the pauses. Silence after a question is where candour appears.
Talk to people the candidate actually reported to, not only peers who liked them. Where you can, take one reference the candidate did not hand you, sourced through your own network or your search partner. The volunteered references are curated. The back-channel ones are honest.
We cover this discipline in more depth when we run searches, because a structured reference process is one of the cheapest insurance policies a board can buy. If you are shaping a CFO or FD brief, our team at Harper May does this work daily, and you can see the kinds of mandates we handle on our live roles.
Two questions will not tell you everything. But if you only had time for two, these are the two that separate a comfortable hire from a safe one.
Common questions
How many references should I take for a CFO hire?
Three well-chosen calls beat six polite ones. Aim for at least one direct former manager, one board member or investor, and ideally one back-channel reference the candidate did not select. Depth matters more than volume.
Should I take references before or after the final interview?
After you have a preferred candidate, but before you make the offer binding. References should confirm and pressure-test your decision, not replace it. Use what you learn to shape the first ninety days and the areas you will support closely.
What if a referee is clearly guarded?
Guardedness is data. Ask directly what they would want a future employer to know, then stay silent. Most people fill the gap. If they will not, that reluctance is itself worth weighing.
