How Much Does a Full-Time CFO Really Cost—and Is It Worth It?

Hiring a Chief Financial Officer (CFO) is a big step for any business. For many, it symbolizes growth and maturity. But before you post that CFO job listing, do you know how much a full-time CFO really costs—or whether it’s even the right time to bring one on board?

Below, we’ll explore the financial commitment involved in hiring a full-time CFO, compare potential costs in the UK and Ireland, and discuss how businesses can get strategic financial oversight without draining their budget.

1. Breaking Down the Total Cost

When people think about CFO costs, they often focus on salary alone. The reality is more complex—especially for companies in the UK and Ireland. Here are the primary expense categories you need to consider:

1. Base Salary
   In the UK, a full-time CFO salary can range from £100,000 to £300,000+ annually, depending on factors such as industry and location (London typically commands higher salaries). In Ireland, the salary range can run from €90,000 to €250,000+, influenced by region and company size.
2. Bonuses and Performance Incentives
   Many CFO contracts include annual bonuses tied to revenue growth, cost-saving targets, or fundraising milestones. These bonuses can be as high as 20–50% of the base salary, adding a significant layer to total compensation.
3. Benefits and Perks
   Pension contributions, private healthcare, company cars, and stock options all add up. Over a year, these perks can easily drive the real cost of a CFO 10–30% above the base salary.
4. Recruitment and Onboarding
   Advertising, headhunter fees, and the onboarding process can cost thousands more. It’s not uncommon for specialist recruitment agencies to charge 15–20% of a CFO’s first-year salary as a finders’ fee.

When you aggregate base salary, bonuses, benefits, and recruitment costs, it’s clear the price tag for a full-time CFO can quickly jump into six figures—or more.

2. The Hidden Opportunity Cost

Hiring a CFO also comes with the opportunity cost of locking in a high-level executive position before you may truly need it. If your business is still under €10M in revenue, you might not be tapping into the full potential of that CFO’s skill set, effectively paying for idle capacity.

Consider if that money could be better spent on:

• Business development to secure new clients
• R&D for product or service improvements
• Marketing campaigns to boost brand visibility
• Bolstering cash flow or paying down existing debt

If these investments could yield a higher return, you need to carefully evaluate whether a full-time CFO is the most efficient use of resources.

3. Alternatives to a Full-Time CFO

The good news is there are other ways to access high-level financial insights without committing to a six-figure salary:

1. Fractional CFO
   A fractional CFO works part-time or project-based. They handle tasks like cash flow forecasting, investor relations, and strategic planning, but only bill you for the hours or projects you actually need.
2. Outsourced Finance Teams
   Some businesses benefit from a combined approach, hiring an outsourced finance team that covers both day-to-day bookkeeping and CFO-level strategy. This setup often operates on a monthly retainer, which can be more budget-friendly.
3. Consulting CFO
   If you only need short-term guidance—for instance, to prepare for a funding round or navigate a major acquisition—a consulting CFO can step in and step out once the project is complete.

All these alternatives keep costs more predictable, free up capital for other areas, and allow you to scale financial leadership as your business grows.

4. Making the Right Decision

“How much does a full-time CFO really cost?” is just the first question. You should also ask, “Do I truly need a full-time CFO right now?” If the answer is yes—because of the complexity of your finances, investor expectations, or rapid growth—then plan your budget accordingly. If not, consider fractional or outsourced solutions that give you the same strategic expertise without burning through your resources.

In the end, a CFO can be a powerful driver of success, but only if the role aligns with your current stage of growth. Weigh the salary, benefits, and hidden costs against what you’ll gain—and decide if there’s a more efficient way to get strategic financial guidance that fits your needs today.

The Bottom Line

A full-time CFO in the UK or Ireland can easily become a six-figure commitment, and that’s before performance bonuses, benefits, and recruitment costs. If your business isn’t quite at the scale to fully leverage a CFO’s expertise, consider fractional or outsourced CFO options. These alternatives can deliver high-level strategic oversight at a fraction of the cost, freeing you to invest more heavily in other areas of your growing business.

Ready to explore cost-effective ways to access CFO-level strategy?

We specialise in flexible finance leadership solutions that grow with your company. Get in touch today to find out how a fractional CFO or outsourced finance team could help you save money while powering sustainable growth.

Contact the RDA Accountants Team today!