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W W W. M A I N E B I Z . B I Z 13 D E C E M B E R 2 , 2 0 2 4 F O C U S B A N K I N G / F I N A N C E / I N S U R A N C E the University of Pennsylvania's Wharton School. Today with the growing volume of cloud-based office work, hiring an outside contractor is more common, even for a high-level financial role tasked with a lot more than keeping the books. "e best CFO is not a bean coun- ter," he says. "You're hiring a star player." Like their full-time peers, part-timers have to shoulder a range of responsi- bilities and sometimes have to learn a lot rapidly, he notes. He also points to a burden on in-house management to provide access to financials so the freelancer can manage disclosures of any conflicts that arise. "You don't lie to your doctor, you don't lie to your lawyer, and you don't lie to your CFO," Geczy says. "You need to have the right system set up so they have access to the right financial information." Wall Street and beyond On Wall Street and beyond, demand for part-time or interim CFOs is strong amid the job's high turnover rate, as reflected in a global barom- eter by Russell Reynolds Associates, a New York-based executive search and leadership advisory firm. In the first nine months of 2024, a total of 224 new CFOs were appointed, just shy of the same period in 2023, when 233 new CFOs were appointed. Among companies in the Standard & Poor 500, the turnover rate has risen to a three-year high of 14.4%, with 72 new appointments. Researchers attribute the upswing to a spike in turnover in the technology and industrial sectors. CFOs on staff are also opt- ing for shorter tenures, averaging 5.6 years so far in 2024, a five- year low. And they're retiring at a higher rate, with 52% of outgoing CFOs retiring or moving to board roles exclusively, a five-year high. While appointments at publicly traded companies in Japan and Hong Kong were almost exclu- sively internal, companies listed on Western exchanges rely more heav- ily on external appointments, the study found. Reasons that CFOs approach- ing retirement choose to leave the profession include burnout, financial security or simply decid- ing that retirement is the more attractive option. Some use their expertise in board roles, opening pathways for independent, part- time contractors. C-suite in flux In Maine, providers of part-time CFO services range from in-house divisions of large accounting firms to niche consult- ing firms and one- or two-person inde- pendent contractors. While some have been doing the work for longer, many of those who experienced burnout during the pandemic have shifted away from full-time to part-time, project-based work, says Kim Rummler, a senior manager at KMA Human Resources Consulting in Falmouth. "Fractional roles are a way to achieve flexibility, balance and the ability to still contribute to the workforce," she says. "It's been a way for employers to control costs, so it's a win for both sides." She says demand is strong for part- time executives of all stripes, including those in charge of technology, human resources and operations and sometimes even the CEO. "Cost is the primary driver," she notes. "Fractional executives are more affordable than full-time executives, making them especially attractive to startups, nonprofits and small to mid- sized businesses with limited budgets." Fractional executives are more affordable than full-time executives, making them especially attractive to startups, nonprofits and small to mid-sized businesses with limited budgets. — Kim Rummler KMA Human Resources Consulting C O N T I N U E D O N F O L L OW I N G PA G E » P H O T O / C O U R T E S Y O F K M A H U M A N R E S O U R C E S C O N S U LT I N G Kim Rummler of KMA HR Consulting

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