Should a CFO ever report to a COO? | Gartner Peer Community (2024)

FAQs

Should a CFO ever report to a COO? | Gartner Peer Community? ›

Never. CFO must report directly to CEO.

Who Does a CFO Report To? The CFO reports to the CEO. This person acts as a strategic financial advisor to the CEO and others on your management team, so it is vital to find someone who is a cultural fit and that you can trust.

Who reports to the COO? The COO typically has direct reports from department heads, such as the VPs of sales, marketing, finance, human resources, and supply chain. The COO heads operations and has close relationships with these departments and business functions.

Role and Responsibilities of Chief Financial Officers (CFOs)

The CFO reports to the CEO but remains one of the key personnel in any company. In the financial industry, it is a high-ranking position, and in other industries, it is usually the third-highest position in a company.

Reporting relationships

The CEO generally reports to the company's board of directors, while the CFO reports to the CEO. As the chief financial officer, the CFO puts together the annual budgets of the company, analyzes financial data, and tracks expenses and revenues.

The COO is second in command to the CEO and works very closely with them. They are also hired by the CEO. The CFO is hired by the CEO and works one-level under them along with the COO and other C-suite positions.

Salaries for each position could vary based on industry, experience, company size and location. The average salary in the US for a CEO is $128,843 per year . The average salary for a COO in the US is $137,876 per year . CFOs earn an average of $139,658 per year .

In summary, while the CEO sets the vision and leads the organization, the CFO manages its finances, and the COO oversees daily operations.

CFOs wield significant influence, with powers to oversee financial strategy, budgeting, investment decisions, and risk management. They can also guide mergers and acquisitions, financial reporting, and investor relations, making critical contributions to a company's success and long-term financial health.

The CFO typically reports to the chief executive officer (CEO) and the board of directors and may additionally have a seat on the board.

Should HR report to COO or CFO? ›

It is widely advocated that the Head of HR should report directly to the Chief Executive Officer (CEO), rather than being placed under another executive, such as the Chief Operations Officer (COO) or Chief Financial Officer (CFO).

CEO is the highest position to occupy in a company. The CFO, who is responsible for the financial discipline of a company along with identifying the strengths and weaknesses of a company, ultimately reports to the CEO.

The CEO is the highest-ranking role in the organization. CEOs and CFOs are not equal in the organizational hierarchy, despite both having 'Chief' in their titles. Generally, the CEO reports to the board of directors, whereas the CFO reports to the CEO.

CFOs are the most senior financial officers in an organization. They report directly to the CEO and work closely with the board of directors.

What is a chief accounting officer (CAO)? The CAO is the second-highest ranking finance professional in an organization, reporting to and working directly with the CFO.