Fielding frank and difficult questions from the board of directors can be daunting. While every business leader must be comfortable addressing the board, chief finance officers are increasingly expected to take centre stage in boardroom proceedings.
Boards are paying more attention to finance chiefs than ever before. Three in four CFOs say their influence in the boardroom has grown over the past five years, according to Deloitte’s 2024 European CFO Survey.
Liza Tullidge, CEO and founder of Netā, a boardroom consultancy, agrees the dynamics between CFOs and board members are evolving. “Historically, CFOs were focused on financial stewardship and risk-management,” she explains. “But the landscape has shifted. CFOs are emerging as pivotal agents in steering their organisations, whether it’s navigating volatile capital markets, adapting to rapidly evolving technology or taking charge on ESG.”
And, for company boards it is no longer enough to merely react to risks as they arise, she stresses. Board members must be adaptive and well-informed. They must be able to anticipate risks and take advantage of shifts in the market. This means the pressure is on the CFO to provide business-critical intel in a timely and compelling fashion.
It is therefore increasingly important that CFOs develop their boardroom credentials. Here, a group of board members share exactly what they want to see from their companies’ finance chiefs.
Understand board dynamics - and use it to your advantage
“Each board has a unique dynamic made up of executives with varied backgrounds, personalities and priorities,” says Patrick Morley, who sits on the board of Bugcrowd, a security firm.
Some executives want intricate details straight away; others prefer to reflect on big-picture ideas first. Some like to ask questions one on one; others like to hash it out among the group. “It’s up to the CFO to adapt accordingly, getting everyone on the same page,” Morley says.
He adds: “Don’t be afraid to ask the board what level of insight they want and how they’d like to receive information.” Good board dynamics allow for feedback, which can highlight new ways to make communication more impactful. This will ensure that CFOs are producing papers and presentations that align with board members’ needs and interests.
Finance chiefs must also understand how to get their own voice heard and how their position will change over time. A newly appointed CFO will have fresh perspectives on the business and may be able to identify new problems or opportunities for growth. The board will likely value these observations, but it may be difficult for newer CFOs to recommend solutions if they lack familiarity with the board. With time and experience, however, their advice may be relied upon more readily.
Morley advises finance chiefs to work the room: “Understand your strengths and weaknesses – and use them to your advantage.”
Be an active and engaging board participant
Active participation with the board is imperative. A well-timed insight or simple clarification could take discussions in new directions. Boards do not want a shrinking violet in the finance seat.
So says Graham Goodwin, co-founder of Jigsaw Equity, a recruitment investment firm, and a former board member. In his experience, the best CFOs are those who understand their role relative to the wider organisation. “A willingness to speak up and an ability to bring the rest of the board on their decision-making journey are key attributes,” he says.
I get frustrated by CFOs who simply present roadblocks
CFOs don’t always understand what boards expect in terms of frequency of communication. Morley says: “There is a tendency to think that communication only happens at specifically scheduled times during the quarter. That’s not our approach – I like to have multiple touch points throughout.”
In fact, boards often prefer to resolve as many points as possible before the board meeting, so CFOs should make themselves available ahead of time, he adds. This provides the opportunity to clear up any misinterpretations and anticipate potential disagreements.
To maximise board-level engagement and the impact of their message, finance chiefs must communicate using clear and succinct language. “Most board members expect them to present financial data in a straightforward manner, avoiding jargon,” says Goodwin. “This ensures all board members, not just those with a financial background, understand the implications of the data.”
He adds: “Communication should always connect financial performance to the company’s strategic goals, offering explanations of how current trends impact future growth and long-term targets.
Never sugar-coat the facts
Above all else, boards simply want their CFO to tell them the truth. Misleading the board was what got Sam Altman, CEO of OpenAI, fired last year. Finance leaders must never be afraid to discuss the risks they believe the company is facing.
There can be a tendency to cushion bad news or attempt to put a positive spin on a negative situation. But, for Philip Sieber-Gasser, CEO of Besso and a former board member, the expectation is straightforward: “The CFO should deliver bad news promptly, without delay or sugar-coating.”
In these situations, any information presented to the board must be factual and backed by a clear analysis of the root causes. The CFO’s duty is to provide a precise breakdown of the challenges and explain how they impact the business. It’s essential that the CFO avoids ambiguity.
“The board doesn’t need vague reassurances or overly optimistic forecasts,” Sieber-Gasser adds. “Be crisp, honest and to the point. This communication style fosters trust and collaboration, which are vital when navigating uncertainty.”
Bring solutions, not just problems
However, CFOs must not be viewed as an obstinate doomsayer, or someone who is overly focused on compliance. They must strike a balance between ensuring good governance and finding ways to deliver value to the business. That’s according to Mike Greene, former chairman of the Association of Convenience Stores and current CEO of Global Research Business. In his view, the most effective CFOs understand that their role isn’t to say ‘no’ but rather to articulate ‘how’.
“A strong CFO needs to be direct and unambiguous when communicating financial realities. But the most successful ones go beyond merely presenting barriers; they actively engage in problem-solving discussions that bridge the gap between ambition and fiscal responsibility.”
Instead of simply highlighting a budget overrun, for example, propose cost-efficient alternatives or smarter investments.
Greene continues: “I’m often frustrated by CFOs who simply present roadblocks, but I deeply appreciate those who can stand their ground while offering constructive alternatives. The true art lies in being both the voice of reason and the architect of possibilities. A great CFO doesn’t just tell you what you can’t do, they help you figure out what you can do and how to do it responsibly.”
Why the CFO-CEO dynamic matters
Lastly, a strong working dynamic between the CFO and CEO is essential. While there is no one-size-fits-all approach, Morely typically prefers the CFO to be the “straight shooter” and the CEO to be “more visionary”. The chief executive is there to set the scene, providing a general overview of the strategic direction for the business. The finance chief will then jump in to “add the colour”, he explains. “They’re there to provide an objective, 360-degree view of the situation and explain to the board how they arrived at a certain decision.” Crucially, he expects the CFO and CEO to be aligned “99% of the time”.
The board doesn’t need overly optimistic forecasts
Greene, on the other hand, is not averse to a bit of conflict. “The CFO should possess the courage to challenge the CEO’s vision while simultaneously working to find viable pathways to achieve strategic objectives. This tension is not just valuable, it’s necessary,” he says.
There are also signs that the traditional CFO-CEO power dynamic is shifting. A survey by OneStream, a finance platform, found that investors, who often sit on the board of directors, now rank CFO competency as the second-most important factor for investment decisions, behind market expansion opportunities. CEO competency ranked seventh.
Vivian Smetsers, CFO of LionVolt, a battery manufacturer, says the board’s attention will likely be skewed towards the finance leader in certain situations. ”If a company is raising capital or facing a cash-flow crisis, the finance person is going to come under closer scrutiny – perhaps more so than the chief executive. But this is heavily dependent on the business,” she explains.
As board members raise their expectations of CFOs, finance chiefs must become masters of boardroom dynamics. While much of this comes down to experience and familiarity, no two company boards are the same. But getting the basics right will help to establish board-level confidence at the outset.
