• New research finds that over half of CFOs lead on key business initiatives
• Strategy and innovation have become essential factors for modern CFOs
• The roles of CFOs in the East Midlands are becoming increasingly diverse.
Finance leadership roles have undergone a remarkable transformation in recent years, research conducted by The CFO Centre reveals that 60% of Chief Financial Officers (CFOs) now play a crucial role in shaping business strategy. Their influence extends to new areas such as recruitment, sustainability, marketing and people management. This diverse skill set may also contribute to the increasing trend of CFOs moving into Chief Executive Officer (CEO) positions, which now account for 25% of all CEO appointments, according to the Institute of Chartered Accountants in England and Wales (ICAEW).
In this blog, we will explore the evolution of CFO roles over time, with a specific focus on the progression of female financial leaders in the East Midlands and insights from influential figures in this field.
How CFO responsibilities have evolved
The CFO position has always required a strategic mindset. However, a study involving 500 finance leaders in the UK found that an astounding 99% believe their roles have evolved more rapidly in the past five years than in the previous five.
While traditionally, financial leaders were expected to be commercially savvy and tactically skilled, primarily focusing on “number-crunching” tasks such as budgeting, financial planning and forecasting. Today’s leaders, however, are moving beyond these conventional tasks and upskilling in new areas that are rapidly adding more commercial value. Modern CFOs are now essential in driving key business initiatives, engaging with Environmental, Social, and Governance (ESG) factors and leading digital transformation efforts that are vital for future growth and success.
Insights from leaders on the “modern CFO”
Thought leaders in this space emphasise that today’s CFOs must strike a balance between responsibility and creativity, advocating for investments in technology and data to drive sustainable growth. Angel Lange, the CFO of Agiloft, believes that today’s finance leaders have the opportunity to redefine their roles beyond being mere “gatekeepers” of the company. She emphasises that saying “yes” does not compromise fiscal responsibility; rather, it involves finding creative and financially sound ways to support business development.
This view is echoed by CEO Prof. Dr Amarendra Bhushan Dhiraj, who asserts that CFOs now play a leading role in innovation alongside the CEO. He suggests that instead of approving budgets, CFOs should advocate for significant investments in areas such as AI, data and automation, thereby aligning finance with business development. He also believes that CFOs are now expected to leverage their strategic influence by building trust and relationships with other stakeholders.
In a recent peer review for CFOs, Chris Ortega, CEO and Fractional CFO, also notes that a significant change in this role is the emphasis on strategy, suggesting that financial leaders should prioritise an 80:20 split between strategy and execution. While Founder and Fractional CFO, Karen Livingstone, believes that it is not just finance, but leaders across all areas of a business who are being asked to elevate their performance. She states that this shift is “redefining what success looks like for today’s CFOs, and for many of us, it’s exactly where we thrive.”
How females have evolved in finance leadership
It isn’t just the role of a CFO that has evolved over time; diversity within finance leadership is advancing as well. Female representation among CFOs has grown substantially from just 6% in 2013 to 23% in 2023. The ICAEW reports that it has become one of the most inclusive positions within the C-suite. Additionally, the CFO role ranks among the top three roles for ethnic minority representation, rising from 2% to 10%.
Notable progress has especially been made in medium-sized businesses. Grant Thornton’s “Women in Business 2025” research reveals that 45% of CFOs in mid-market companies are now female, which is slightly above the global average of 44.6%. The report highlights initiatives, such as mandatory gender pay gap reporting, as a means for UK businesses to demonstrate greater transparency and implement meaningful change.
Moreover, Distinct’s own data shows that women hold 28% of CFO or FD roles in the East Midlands, and among these female leaders, 80% are employed by small and medium-sized organisations.
Despite progress, female leaders in the finance industry still face challenges. EmpowHer research found that women have faced difficulties when considering leadership roles, including childcare (23%) and concerns about their age (27%). Furthermore, our interview with Anshu Mehan, Director at HSKSG, explored gender equality in the finance sector. Mehan stated that the field remains predominantly male-dominated and emphasised the necessity of creating an environment where women feel safe and respected, expressing that they should not have to prove their worth to reach the top.
Agility, innovation and inclusivity
The evolution of senior finance roles has transformed CFOs into strategic leaders whose influence extends well beyond traditional management responsibilities. As finance leaders continue to broaden their impact, they are not only enhancing business performance through agility and innovation, but also promoting inclusivity within their organisations.
Our team of finance recruitment experts has built long-standing relationships with industry leaders. If you’re interested in understanding more about the CFO role or how an executive-level hire could positively affect your business, please contact our team for a free consultation.
Part two poses the question to business owners: when considering the commercial impact of a financial leader, when is the right time to hire?
