Category

Full-Time CFO

Fractional CFO

Compensation

Considerable cash compensation.

A senior executive skill set at a fraction of the cost.

Collects bonuses on work.

Does not collect bonuses.

Customary Equity Stake of 3%-5%.

Does not have an equity stake in operations, ensuring objectivity.

Flexibility

Inflexible Term.

As much or as little time as needed.

Cannot be separated easily from essential business functions once installed.

The role can change and adapt up to and including separation.

Signed in a long-standing and complex contract.

Is the partnership no longer beneficial? You can easily separate.

Mode of Operation

Gets bogged down in the day-to-day noise.

Focused on priorities and problem areas exclusively.

A pillar position, creating vulnerabilities in times of transition.

Acts as a transitional position without sacrificing productivity or progress.

Requires full investment in overseeing company management.

Project-specific work, tangible and isolated goals.

Must make themselves busy in times of light work.

Part-time permanent work, as little as 1-2 days a month.

Married to the vision of CEO and higher-ups.

Beneficial objectivity—can advocate for pivots and strategies that are separate from equity stakes.

A long settling into “company culture” and client base.

Immediate and rigorous assessment of the business from day one.

Assumes leadership in all areas.

Provides coaching, mentoring, and problem-solving strategies in qualified areas.

Myopic or limited view of company goals, especially through habitual views over time.

Observes multiple operations simultaneously and over time, offering a broader vision and a well of possible solutions.