Why Hire an Interim CFO? Public Companies Can’t Afford a Financial Leadership Gap

May 7, 2025
Why Hire an Interim CFO? Public Companies Can’t Afford a Financial Leadership Gap
When a public company CFO leaves unexpectedly, the pressure is on. Reporting deadlines, investor calls, and team continuity can’t wait. And it’s a growing problem. CFO turnover among S&P companies hit the highest level in six years in 2024. That’s why more boards are hiring interim CFOs — experienced financial leaders who can step in immediately, stabilize operations, and build confidence.
To explore how this works in real time, InterimExecs CEO Robert Jordan sat down with two seasoned finance veterans, Mitch Cohen and Lawrence Firestone. Both have extensive experience as public company CFOs.

Why Hire an Interim CFO: Key Takeaways

  • Public companies can’t afford CFO gaps — the risk to compliance and investor confidence is high.
  • Interim CFOs bring a track record of success, can make fast decisions, and solidify Wall Street credibility.
  • Boards should focus on experience, chemistry, and execution — not just resumes.
  • InterimExecs can match you with a proven CFO in under 48 hours.

You can read the transcript of Bob’s chat with Mitch and Larry here.

The Stark Differences: Permanent vs. Interim CFO, Private vs. Public Companies

Both Cohen and Firestone have had CFO gigs in private and in public companies. The challenges are very different — being accountable to a range of stakeholders from the board to Wall Street vs. being accountable to the owner.

But, Cohen says, executives considering a public company job have one distinct advantage going in: “You get a real good look at the company through their SEC filings.”

That’s important because it means he knows what he’s getting into before he starts a new interim gig. It allows him to be effective immediately in a job with “a lot more time sensitivity because of the very strict reporting deadlines” of Sarbanes-Oxley.

And then there is the difference between taking that job as a permanent hire and taking it as an interim. The pressure can ramp up significantly for interims, Larry Firestone says.

“When you drop in as an interim, you know, you could be replaced. They could be searching for another CFO at that point in time.” Yet, the mission remains the same: “Getting the house in order.”

Parachute

The “Smoke Jumper” Skillset of Interim CFOs: Speed, Decisiveness, and Trust

Firestone refers to the interim CFO role as that of a “smoke jumper,” someone who parachutes in to tackle immediate crises

Choen agrees. “There’s very little time. So it takes a different type of skill set. I can identify problems real quick and move forward. There’s no politics involved. Just get the job done on the interim basis.”

Both experts emphasize the importance of building trust quickly. “There has to be an immediate chemistry where people just will trust that you’re going to do the right thing,” Firestone says. “Absent that, they shouldn’t hire you.”

The CFO Leadership Gap: What Happens When a Public Company Loses Its Financial Leader

Leaving the CFO seat empty poses significant risks. “The CFO, interim or permanent, is a pillar for the company,” Firestone says. And, he notes, the second in command usually has an “inward-facing role.” They often lack the outward-facing experience and skills needed to communicate with Wall Street and investors.

“When it becomes an outward-facing role, talking to Wall Street bankers, analysts or investors, you’re in a sales role. You’re selling the future of the company. And that’s not innate to a lot of the financial people that populate the inner part of the engine,” Firestone says.

“If you have a good second-in-command, possibly you can get by,” Cohen says. “But I haven’t seen where it actually worked. Generally, that second-in-command doesn’t have the experience.”

What Boards Should Look for in Hiring an Interim CFO

When hiring an interim CFO, boards should focus on experience and temperament. “I would want to vet some of the worst situations they’ve seen and what they’ve done about it,” Firestone says. He also stresses the importance of team behavior and a hands-on work style.

Cohen recommends that boards look for proven experience. Ask the interim candidate: “Have you done it before? How many times have you done it before? What early success did you have?”

Don’t Rush a Permanent CFO Hire

Both experts cautioned against rushing to fill the permanent CFO role. “They should take their time,” Cohen says. “But don’t jump in and hire the next permanent CFO because you think it’s good for appearances. That’s never going to work out.”

Firestone agrees that a hasty permanent hire is a bad idea. But he also points out that how the board treats the interim CFO is important, too. “Don’t treat them like an interim. Treat them like part of the fabric and let them run.”

The RED Team Advantage: The Right Interim CFO Right Now

The message from Cohen and Firestone is clear: Public companies need a strong, experienced CFO, and they need one now. The risks of leaving the seat empty are too great.

The best approach — better than turning to the second-in-command of your finance team or asking a board member to take on the role while you search for a new full-time CFO — is to prioritize finding the right interim CFO who can quickly assess the situation, build trust, and deliver results.

That gives boards the breathing room they need to find the right permanent hire, ensuring that person will be the right fit for the long term.

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