Why Mid-Sized Canadian Companies Struggle to Recruit CFOs (And How To Fix It)
Mid-sized companies often need a CFO with the breadth of experience found in a large corporation, but can’t always match its compensation, resources or brand recognition.
That doesn't mean they can't attract strong finance leaders. It means they need to define the role clearly, compete on more than salary and run a focused search. For many candidates, the opportunity to shape the business can be compelling, but only if the mandate and the organization’s expectations are credible.
Why the search can be difficult
The role combines several jobs. In a mid-sized company, a CFO may lead financial reporting, treasury, planning, technology, risk and investor or lender relationships. They may also support acquisitions, integration, operational improvements or succession planning. The role can be broader and more hands-on than the same title in a larger organization.
The company may be competing with better-resourced employers. Larger corporations can offer established teams, mature systems, recognized brands and clearly defined career paths. Candidates may be reluctant to leave those advantages for a private company unless the mandate, authority and support are clear.
Compensation comparisons can be misleading. A private company may not be able to match a large public company’s cash package. But salary alone does not determine whether an offer is competitive. Bonus design, equity or other long-term incentives, benefits, flexibility and the scope of the role all matter. Candidates need to understand how incentives work, not just hear that there is “upside.”
The business may not be aligned on what it needs. Owners, boards and CEOs can have different expectations of a CFO. One may want a strategic partner; another may prioritize financial controls, operational reporting or transaction experience. If the organization has not resolved those differences, candidates receive mixed signals, and the search can stall.
Senior candidates also assess the company, not just the job. They want to understand its business prospects, the challenges they will inherit and whether they can get behind the organization’s direction.
How to make the opportunity more competitive
Define the mandate before approaching candidates. Be specific about the business priorities, the CFO’s decision-making authority, the resources available and what success should look like in the first year. If the role is expected to transform reporting, lead a transaction and build a finance team, make sure the responsibilities and support are realistic.
Be candid about the challenges. Strong candidates will discover the company’s financial, operational and organizational realities during the process. Explain what is working, what needs improvement and where the CFO will have influence. Directness builds credibility; overselling creates doubt.
Build a complete offer. Benchmark compensation against comparable companies, not just larger organizations with different scale and complexity. Where cash cannot match a corporate package, consider whether a meaningful performance bonus, long-term incentive, equity participation, flexible work arrangements or a broader leadership remit can strengthen the offer. Explain eligibility, measurement and payout clearly.
Show the candidate the path to impact. The attraction of a mid-sized company is often the ability to influence decisions and see results directly. Give candidates access to the CEO, owners or board members they will work with. Discuss the company’s strategy, investment priorities and growth plans. Make sure the opportunity offers genuine influence, not simply a long list of responsibilities.
Move decisively. Senior finance candidates are often employed and selective about changing roles. A slow or inconsistent process can weaken confidence in the organization and give other opportunities time to advance. Agree on interview stages, decision-makers and timelines before launching the search, then keep candidates informed.
Use an executive search firm strategically
An experienced executive search firm can help clarify the mandate, test compensation against the relevant talent market and reach candidates who may not be actively looking. It can also provide an outside perspective on whether the role’s expectations, package and decision process are likely to attract the level of candidate the company wants.
Choose a firm with relevant experience in senior finance and private-company hiring. The search partner should be able to discuss the differences between candidates from large corporations and those who have operated in leaner environments, and help assess which experience best fits your needs.
Most importantly, treat the firm as a partner in shaping and managing the search, not just as a source of résumés. A well-run process helps the company present a consistent opportunity and make decisions while candidate interest is strong.
The bottom line
Mid-sized companies may not be able to compete with large corporations on every measure. They can compete by offering a well-defined mandate, direct access to decision-makers, meaningful influence and a transparent compensation package.
The strongest CFO candidates need to see both the challenge and the opportunity. It becomes much easier to make a compelling case for joining when the company is clear about what it needs, and is prepared to support the person it hires.
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