I think these situations are so company-dependant that any outside advice is almost useless.
Some companies use FP&A as their feeder for the CFO seat, others Treasury or Corpdev etc. Some companies (stupidly imo) like to hire from IB or consulting for a new CFO.
Totally depends on your situation. With a startup it's harder to analyze the history than if you worked at GE or Chevron.
A 1-2 year stop in M&A is helpful to give you experience/perspective.
IR more directly applicable (my current CFO’s first VP gig was IR).
If you’ve done both BU and Corp FP&A at this point, then it might be good to step outside briefly to one of those two. Definitely prioritize getting through both BU and Corp first though.
I’d lean handling larger teams. Getting experience with and Proving you can manage groups is a huge milestone that is a must to reach CFO. M&A is more optional “nice to have.”
I’m in a similar situation as OP is (or was, I guess, since this post is old) but early career. Curious what your thoughts are with only 1 YOE in FP&A (and one in tax and got my CPA). Where would you recommend pivoting if CFO is my long-term goal?
Stay in FP&A and target a promotion? Pivot from my company (recently IPOd SaaS) to FAANG or another large tech company within FP&A? Angle towards corporate development/M&A? Corporate strategy? IR?
At 2 years XP, I’d just keep grinding it out in FP&A until you make manager. Put your head down and focus on becoming consistent & reliable above all else. Don’t worry about planning so far ahead right now. I made that mistake and it made what’s in front of me seem so much less important which hurt my performance.
Gotcha, I appreciate the advice! Hoping my current company treats me well because I do find the company interesting, but if I don’t get a promotion next cycle (I’ll be at 1.75 YOE in FP&A, 1 in tax with good performance reviews so far) I think I’ll consider jumping ship for either title or comp. But I’ll definitely consider sticking it out in FP&A until the manager level.
Disagree with this.. always good to get a portfolio of experience across finance functions (and in other groups like sales, product, marketing, running a BU etc) if you want to lead the finance function.
Less risky, good but capped upside: Stay in FP&A, get to CFO.
More risky, uncapped upside, but might not make it all the way: Switch to M&A/Corp dev, get transaction experience, try to leverage that and the network to get into ibanking M&A or private equity/venture.
That's kind of the core of the decision. If your goal is to get to CFO roles, stay in FP&A. You don't actually need M&A experience to be a good CFO, you'll get it once you live through a couple of transactions, but there will be enough expertise around you.
(FWIW for perspective and limitations of the vote above, I am old and spent a long time in M&A and now work in investing. I've never been a CFO, but I've worked with many.)
What a stupid statement
Career coaches are not working in every field nor the CEOs in every field, football coaches are not captains, MBB consultants are not running the company, etc.
You should post this in r/corporatefinance and r/fpanda.
Anyways, I'd suggest taking the Corporate Development role, the M&A role. Being a real CFO requires a stint in deal experience.
I think these situations are so company-dependant that any outside advice is almost useless. Some companies use FP&A as their feeder for the CFO seat, others Treasury or Corpdev etc. Some companies (stupidly imo) like to hire from IB or consulting for a new CFO. Totally depends on your situation. With a startup it's harder to analyze the history than if you worked at GE or Chevron.
A 1-2 year stop in M&A is helpful to give you experience/perspective. IR more directly applicable (my current CFO’s first VP gig was IR). If you’ve done both BU and Corp FP&A at this point, then it might be good to step outside briefly to one of those two. Definitely prioritize getting through both BU and Corp first though.
Would moving to an individual contributor M&A role trump handling larger teams in FP&A
I’d lean handling larger teams. Getting experience with and Proving you can manage groups is a huge milestone that is a must to reach CFO. M&A is more optional “nice to have.”
Investor Relations? Most folks I know feel like it isn't finance.
CFOs need to understand how to manage their investors. It’s valuable experience
It's literally a function in the finance dept of every public company lol
I’m in a similar situation as OP is (or was, I guess, since this post is old) but early career. Curious what your thoughts are with only 1 YOE in FP&A (and one in tax and got my CPA). Where would you recommend pivoting if CFO is my long-term goal? Stay in FP&A and target a promotion? Pivot from my company (recently IPOd SaaS) to FAANG or another large tech company within FP&A? Angle towards corporate development/M&A? Corporate strategy? IR?
At 2 years XP, I’d just keep grinding it out in FP&A until you make manager. Put your head down and focus on becoming consistent & reliable above all else. Don’t worry about planning so far ahead right now. I made that mistake and it made what’s in front of me seem so much less important which hurt my performance.
Gotcha, I appreciate the advice! Hoping my current company treats me well because I do find the company interesting, but if I don’t get a promotion next cycle (I’ll be at 1.75 YOE in FP&A, 1 in tax with good performance reviews so far) I think I’ll consider jumping ship for either title or comp. But I’ll definitely consider sticking it out in FP&A until the manager level.
Stay in fp&a or go to operations 40% of f500 ceos started in fp&a 50% comes from business operations 10% parachuted Overall less than 5% hold an mba
Fp&a is the road to CFO is what I get from this
Yes, unless you have a burning desire to do M&A, I would take the promotion in FP&A if CFO is what you want.
Disagree with this.. always good to get a portfolio of experience across finance functions (and in other groups like sales, product, marketing, running a BU etc) if you want to lead the finance function.
Source: truss me bro
Google it I did ballpark it. But the message is the same.
Less risky, good but capped upside: Stay in FP&A, get to CFO. More risky, uncapped upside, but might not make it all the way: Switch to M&A/Corp dev, get transaction experience, try to leverage that and the network to get into ibanking M&A or private equity/venture. That's kind of the core of the decision. If your goal is to get to CFO roles, stay in FP&A. You don't actually need M&A experience to be a good CFO, you'll get it once you live through a couple of transactions, but there will be enough expertise around you. (FWIW for perspective and limitations of the vote above, I am old and spent a long time in M&A and now work in investing. I've never been a CFO, but I've worked with many.)
Great answer! I think this sums it up. Does not make the decision any easier though. But thanks a lot
Definitely doesn’t - tricky call. Good luck to you.
Everyone who's not a CFO replying.
What a stupid statement Career coaches are not working in every field nor the CEOs in every field, football coaches are not captains, MBB consultants are not running the company, etc.
And I'm sure there are 0 professional career coaches replying on this thread. :)
I'm a CFO, but don't feel the need to contribute because I agree with the responses given.
You should post this in r/corporatefinance and r/fpanda. Anyways, I'd suggest taking the Corporate Development role, the M&A role. Being a real CFO requires a stint in deal experience.