91. SIMPLE Method for Fractional CFO Compensation

Nov 14, 2023

Explore the innovative compensation model for fractional CFOs that links pay to revenue oversight. Discover the advantages of treating fractional CFOs as employees to enhance control and operational efficiency. Learn about automation tools that streamline CFO reports, improving data reliability. The discussion also emphasizes performance-based pay to boost client retention and incentivize optimal performance. Perfect insights for anyone considering hiring a fractional CFO or looking to refine their financial strategies!

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ADVICE

Employee vs. Contractor

Consider hiring fractional CFOs as employees for better control over processes and experience.
Consult a labor attorney about worker classification, as it's a legal gray area.

INSIGHT

Percentage Considerations

The percentage of revenue share for CFOs depends on talent level and desired compensation.
Consider client fees and the number of clients needed to reach target compensation.

ADVICE

Compensation Model

Pay fractional CFOs a percentage of the revenue they manage to align incentives.
This encourages them to handle more clients and provide excellent service to retain them.

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This topic that's been a game-changer for my firm – the compensation model for fractional CFOs. If you're thinking about hiring one or just curious about how it all works, this episode is a must-watch.

I'll be sharing my
👉 favorite compensation model
👉 breaking down why it's been so effective for my team
👉 offering some insights into the decision-making process when it comes to hiring a fractional CFO.

Let’s dive in.

_________________________

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WHO AM I?

I'm Michael King. A nuclear engineer turned Fractional CFO. I've spent nearly a decade scaling my Fractional CFO firm, KFE Solutions. During that time, I've realized the enormous impact that Fractional CFOs can have for their clients, their families, and themselves.

Now, I help other Fractional CFOs learn how to scale their firms and maximize their own impact!

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