• Recent studies indicate that the majority of UK businesses are adjusting their financial leadership due to the current economic climate
• The cost of senior finance leadership in the East Midlands starts at £88,000
• Solutions include interim appointments and succession planning.
In today’s fluctuating economy, organisations are navigating financial uncertainty while striving to remain profitable and pursue growth. A striking 96% of businesses have reportedly made changes to their financial management practices in response to challenges such as rising costs, profitability concerns and compliance requirements. As a result, many business owners may feel conflicted between the desire to cut costs and the important decision of when to make a key financial leadership appointment.
Previously, we discussed how finance leadership roles have evolved to shape an organisation’s overall business strategy, meeting the increasing demands of the current environment. This level of appointment can significantly influence a company’s direction and overall commercial success. In this blog, we will explore how senior finance leaders contribute to organisational success and the factors that guide businesses in designing effective finance teams.
How organisations can benefit from a finance leader
A recent article by the president of the CFO Leadership Council highlighted nine emerging faces of modern CFOs. These profiles range from those who focus on financial data and manage crises to leaders who guide key decisions and implement new technologies. For instance, a rapidly growing start-up may need a leader who can navigate growth and digitalisation strategies. However, skilled financial leaders can adapt to both long-term plans and unforeseen challenges.
SMEs, in particular, often have greater flexibility in designing their finance teams. With smaller teams, a financial leader can take on various responsibilities based on a business’ priorities. For instance, a study by Pleo found that 97% of UK SMEs have adapted their CFO roles in response to the current financial climate. While Deloitte UK’s 2025 annual CFO survey reveals that 41% of CFOs are prioritising defensive strategies, with only 19% focused on expansion. This highlights the responsibility for businesses of all sizes to navigate challenges in a financially sound manner, benefiting not only the organisation, but also its employees and customers.
We have outlined the impact that executive finance leadership can have on an organisation, depending on its goal:
| Business objective | How C-suite financial leaders can support |
| Growth ambitions | Evaluate investment opportunities, explore new markets and secure funding to support the company’s growth objectives. |
| Navigate economic challenges | Overcome economic uncertainties by implementing effective risk management strategies and developing financial plans, budgets and forecasts. |
| Financial responsibility | Ensure compliance with regulations by staying updated on legislative changes, helping protect the company cost-effectively. |
When to invest in a financial leader
As a growing SME ourselves, Distinct appointed our Finance Director, Leanne Gelderd, in 2021 to lead our team and support international growth. Distinct’s CEO, James Calder, explained his decision to invest and the importance of having a Finance Director for the company’s development. “We already had an exceptional accounts team and Finance Manager when we welcomed Leanne. Her previous experience as a Financial Controller at Chanel gave us the confidence that she could not only lead the team but also influence our strategic direction. In addition to providing financial insights, which inform many key decisions in our board meetings, Leanne secured essential funding that enabled us to expand our business internationally and has been the driving force behind multiple sustainability initiatives, leading us to achieve our recent B Corp certification.”
“I firmly believe that no business can succeed without a strong financial foundation,” Calder continues. “The key to deciding when to bring in a leader you can genuinely collaborate with lies in recognising the value they will add to your business, rather than viewing them as an expense. Consider where you want your business to be in the next five to ten years and how a financial director can help you achieve those goals.”
Calder decided to invest in Distinct’s Finance Director during the economic uncertainty that followed the COVID-19 pandemic. An article by CFO Stephen Dews emphasises that the appointment of a financial leader is crucial during financial crises, such as a recession. During these times, the CFO’s role shifts to a consultative relationship with the board, providing a steady voice when confidence is low. Dews highlights that accurate financial data and forecasts are vital for making informed investment decisions. As when business owners are particularly cautious about their decisions, having a strong financial leader responsible for risk management, planning and cost control becomes essential.
The cost of a senior finance appointment to a business
Our data from the past two years shows that salaries can vary significantly, with an average of £105,000 for an FD and £147,000 for a CFO. The graph below illustrates the distribution of these roles across the East Midlands and identifies the most common industries, with manufacturing being the largest at 19%. These salary differences highlight the flexibility of company budgets and the potential for market competitiveness. Additionally, some job openings may offer substantial bonuses contingent on the company’s performance.
According to Indeed, the national average salary for a Finance Director is approximately £88,000, while a Chief Financial Officer earns an average of £102,000. These salary figures are consistent with those in the East Midlands region. However, when hiring in London, salaries tend to increase by around 8% for Finance Directors and by 35% for Chief Financial Officers.
Assembling your senior finance team
If your business isn’t ready or able to invest in a full-time financial leader, you may consider partnering with a CFO on a part-time or interim basis. This arrangement can be beneficial for specific projects, hands-on training, or during periods of change. Additionally, there are other senior, strategic roles in accounting and finance, such as Finance Business Partner or Financial Controller, that bring valuable skills and insights to your management team. The average UK salary for these roles ranges from £53,000 to £61,000 per year.
Strong financial leadership is essential for helping an organisation transition from a reactive approach to a more proactive and strategic one. In addition, the finance leader is crucial not only for large corporations, but also for growing businesses that require informed guidance based on reliable financial data.
When determining the right time to make this type of hire, it’s important to consider the company’s current objectives but also its long-term goals over several years. During periods of financial instability, a financial leader can serve as a guiding force, whether in an interim role or by training a successor in a slightly more junior position that already exists within the organisation.At Distinct, we understand first-hand the positive impact that a senior finance appointment can have on a business. If you’re interested in expanding your financial leadership team on a permanent or interim basis, please contact our team today.
