How to Become a CFO in Tech: An Analysis of 100+ Careers

The role of the Chief Financial Officer (CFO) has become critical in today's complex and fast-paced business environment, particularly in the technology sector. 

As companies navigate rapid growth, changing market dynamics, and evolving regulatory landscapes, these finance experts play an important role in shaping strategy, driving performance, and ensuring financial stability.

In recent years, there’s been a shift in the responsibilities of these finance leaders encompassing now not just the operational side, but also the strategic front. They are required to have a holistic understanding of the organization, and master hard and soft skills to be able to work all kinds of teams and make the best decisions possible.  

To understand how one becomes a CFO in today’s day and age, we analyzed the careers of over 100 professionals from large, publicly traded technology companies to provide aspiring finance leaders valuable insights.

This analysis covers a wide range of factors, including:

• Educational background and degrees
• Career length and experience levels
• Common entry-level positions and early career roles
• The impact of Big 4 accounting firm experience
• Typical career progression and key roles
• The importance of prior CFO experience
• Transitions from other industries into tech
• Other notable skills and experiences

By examining these elements in detail, we aim to provide a comprehensive view of how to become a CFO in today's technology landscape. Whether you're a recent graduate plotting your career path or a seasoned finance professional looking to make the leap to the C-suite, this report offers data-driven insights to inform your journey.

Educational Background of Tech CFOs

The educational foundations of tech CFOs play a significant role in shaping their careers and preparing them for the challenges of financial leadership in the fast-paced technology sector. Our analysis reveals several key trends in the educational backgrounds of these executives.

Undergraduate Degree Analysis of Tech CFOs

The majority of tech CFOs in our study have undergraduate degrees in business-related fields, with a strong emphasis on finance and accounting:

• 45% hold undergraduate degrees in Business Administration, Accounting, or Finance
• 12% studied Economics
• 8% have Engineering backgrounds
• 3% come from Arts and Humanities disciplines

This shows the importance of a strong financial foundation, but also that there are multiple paths to the CFO role. 

For example, Dan Durn, CFO of Adobe, holds a BS in Aeronautical Mechanical Engineering from the United States Naval Academy, showcasing that technical backgrounds can also lead to financial leadership roles.

Graduate Degree Analysis for Tech CFOs

Advanced degrees, particularly MBAs, are extremely common among tech CFOs:

• 68% of CFOs in our dataset hold an MBA degree

This high percentage underscores the value placed on broad business education and strategic thinking skills in addition to financial expertise. The most common institutions for MBA degrees include:

• Harvard Business School
• Stanford Graduate School of Business
• Wharton School of the University of Pennsylvania

Ivy League Education and Tech CFOs

Ivy League institutions are well-represented among tech CFOs, though they are not a prerequisite for success:

• 26% of CFOs graduated from an Ivy League institution for either their undergraduate or graduate degree

Harvard University, Princeton University, and Yale University are the most common Ivy League schools represented in our dataset. The other 74% did not attend any of these universities. Showing, once more, that in order to excel in tech, what you can do is more important than where you studied.

International Education and Unique Backgrounds of Tech CFOs

While the majority of tech CFOs in our dataset were educated in the United States, we also observed several executives with international backgrounds. For example, Ed Grabscheid, CFO of JFrog, studied Business Administration at the University of Economics and Business Administration in Vienna.

Additionally, Howard Wilson, CFO of PagerDuty, holds a B.Sc. in Psychology and Information Systems from the University of South Africa. 

Key Takeaways on Education for Tech CFOs

1. A strong foundation in finance, accounting, or business is highly valuable, but not absolutely necessary for becoming a tech CFO.
2. Advanced degrees, particularly MBAs, are very common and can provide important strategic and leadership skills.
3. While Ivy League education is represented, it is not a requirement for success in tech CFO roles.
4. Diverse and international educational backgrounds can bring unique perspectives to financial leadership positions.

Average Years of Experience Before Becoming a Tech CFO

On average, the tech CFOs in our study had 16 years of professional experience before landing their first CFO role. 

For example, Dipak Golechha, CFO of Palo Alto Networks, had 26 years of experience in finance and executive roles before being promoted into the role. He started his career at Procter & Gamble and held various positions for about 18 years before transitioning to leadership roles in different companies, including CFO positions at Chobani and The Nature's Bounty Co.

Range of Experience Levels Among Tech CFOs

While the average is around 16 years, we observed a wide range of experience levels among tech CFOs:

• Minimum: 10-12 years
• Maximum: 30+ years

At the lower end of the spectrum, we found executives who attained the position with around 10-12 years of experience. For instance, John Collins, the CFO of LivePerson, stepped into the role after about 13 years of professional experience. 

Collins started his career in regulatory roles at NYSE and quickly progressed through various finance and strategy positions before landing his first CFO role.

On the other end of the spectrum, we have over 30 years of experience before reaching the top finance position. Michael Scarpelli, CFO of Snowflake, had approximately 32 years of experience in finance before taking on his current role. Scarpelli started his career at PricewaterhouseCoopers in 1989 and held similar positions at various tech companies before joining Snowflake.

Industry Experience vs. Finance Experience for Tech CFOs

While total years of experience are important, the type of experience matters as well. Many CFOs in our study had a mix of pure finance roles and broader business or operational roles. For instance, Howard Wilson, CFO of PagerDuty, had a diverse career spanning consulting, sales, operations, and executive positions. 

Key Takeaways on Experience for Tech CFOs

1. On average, tech CFOs have about 16 years of professional experience before attaining the role.
2. There is a wide range of experience levels, from 10-12 years to over 30 years.
3. Fast-track careers are possible but uncommon, often requiring exceptional performance and the right opportunities.
4. A mix of finance and broader business experience can be valuable in preparing for a CFO role.
5. The quality and diversity of experience can be just as important as the quantity of years spent in the workforce.
6. Common Entry-Level Positions for Future CFOs

Where Do Tech CFOs Start Their Careers?

The journey to becoming a CFO often begins with entry-level positions that provide a strong foundation in finance and business. Our analysis reveals some interesting patterns in early career choices.

Most Common First Job Titles

1. Financial Analyst (28%)
2. Auditor/Accountant (22%)
3. Consultant (15%)
4. Investment Banking Analyst (12%)
5. Business Analyst (8%)
6. Other (15%)

The majority of CFOs (50%) started their careers in traditional finance roles such as Financial Analyst or Auditor/Accountant. These positions provide a solid grounding in financial principles, reporting, and analysis - crucial skills for any aspiring CFO.

Interestingly, a significant portion (15%) of future CFOs started their careers as consultants. This path, while less traditional, offers exposure to various industries and business problems, developing problem-solving and strategic thinking skills. Ruth Porat, CFO of Alphabet (Google's parent company), started her career as a consultant at Morgan Stanley.

Investment Banking Analyst roles were also present, although they’re less common (12%) than the other two. 

Notable Outliers in Career Starts for Tech CFOs

While rare, some CFOs had unconventional starts to their careers. A notable example is David Wehner, CFO of Meta (formerly Facebook), who started his career as a research analyst at Monitor Company, a strategy consulting firm.

While starting in finance is common, it's not the only path to becoming a CFO. The key seems to be gaining a strong understanding of financial principles and business operations, regardless of the specific starting point.

Key Takeaways

1. Financial Analyst and Auditor/Accountant are the most common entry-level positions for future CFOs.
2. A significant portion of CFOs start their careers in consulting or investment banking.
3. While 77% of CFOs begin in finance-related roles, nearly a quarter start in other areas.
4. Unconventional career starts can provide unique perspectives and skills valuable to CFO roles.
5. Early career choices should focus on building a strong foundation in financial principles and business operations.

💡 Along with thinking and strategic skills, CFO's need to use software tools so they can stay on top of their organization's financial situation.

The Role of Big 4 Accounting Firm Experience

Experience at one of the Big 4 accounting firms (Deloitte, PwC, EY, and KPMG) is often seen as a valuable stepping stone in finance careers. 

Approximately 35% of the tech CFOs studied have experience working at one of these. It is a number that’s hard to ignore, proving that while not a prerequisite, having a background in one of these firms will probably get you a foot in the door. 

Among those with Big 4 experience:

• PwC: 40%
• EY: 25%
• Deloitte: 20%
• KPMG: 15%

PricewaterhouseCoopers (PwC) appears to be the most common, followed by Ernst & Young (EY).

Notable Examples of Big 4 Experience Among Tech CFOs

Among the professionals in this group, we can find Kelly Steckelberg, CFO of Zoom, who started her career at KPMG. We can assume this role gave her valuable experience in financial auditing and reporting, skills that are crucial for a CFO.

Analysis of Necessity of Big 4 Experience for Tech CFOs

While Big 4 experience is common among tech CFOs, our data clearly shows that it's not mandatory for the role. 65% of the professionals in our study did not have experience in these firms.

For example, Jason Child, CFO of Splunk, built his career primarily at Amazon before moving to other tech companies. Similarly, Robynne Sisco, CFO of Workday, had no Big 4 experience, instead building her career through various roles at tech companies like VMware and Oracle.

Key Takeaways on Big 4 Experience

1. 35% of tech CFOs have Big 4 experience, with PwC being the most common.
2. Big 4 experience can provide valuable skills and networking opportunities.
3. However, 65% of tech CFOs succeeded without Big 4 experience, indicating it's not necessary.
4. Alternative paths, such as building a career within tech companies, can also lead to CFO roles.
5. The skills and experiences gained, rather than the specific employer, are what matter most.

Career Path and Progression to Becoming a Tech CFO

The journey to becoming a CFO in the tech industry is often marked by a series of progressively responsible roles in finance and related areas. Cledara’s analysis reveals some common patterns in the career progression of tech CFOs.

Most Common Roles Held Before Becoming CFO

1. VP of Finance (55%)
2. Controller (40%)
3. Director of Financial Planning & Analysis (FP&A) (35%)
4. Treasurer (25%)
5. Investment Banking (20%)
6. Chief Accounting Officer (15%)
7. Operational Roles (e.g., COO, Head of Operations) (10%)

Typical Sequence of Job Titles and Responsibilities for Tech CFOs

While individual paths vary, a typical progression might look like this:

1. Financial Analyst or Accountant
2. Senior Financial Analyst
3. Manager, Finance or FP&A
4. Director, Finance or FP&A
5. VP, Finance
6. CFO

For example, Ned Segal, CFO of Twitter, followed a similar path:

1. Analyst at Goldman Sachs
2. Vice President at Goldman Sachs
3. Senior Director of Finance at RPX Corporation
4. CFO at RPX Corporation
5. SVP of Finance at Intuit
6. CFO at Twitter

This progression demonstrates a gradual increase in responsibility and scope, from handling specific financial analyses to overseeing entire finance functions.

Importance of FP&A Experience for Tech CFOs

Almost 35% of tech CFOs had significant Financial Planning and Analysis (FP&A) experience before assuming their current positions.

For example, Brett Tighe, CFO of Okta, spent several years as Senior Vice President of FP&A before assuming his current role. Similarly, Elena Gomez, CFO of Toast, held the position of Senior Vice President of Finance and Strategy at Salesforce, where she was responsible for FP&A functions. 

The value of FP&A experience for aspiring CFOs lies in several key areas:

1. Strategic Thinking
2. Business Partnering
3. Data Analysis
4. Performance Management
5. Investor Relations

Role of Controller Experience in Becoming a Tech CFO

Cledara’s analysis reveals that approximately 40% of tech CFOs held controller or similar positions (such as Chief Accounting Officer) at some point in their careers. This high percentage underscores the importance of strong accounting expertise in the path to becoming a CFO.

Examples from our dataset include:

• Mark Hawkins, former CFO of Salesforce, who served as Controller at Logitech before moving into CFO roles.
• Kelly Steckelberg, CFO of Zoom, who held the position of Chief Accounting Officer at Zoosk before becoming CFO.
• Ed Grabscheid, CFO of JFrog, who was Controller of Worldwide Services FP&A at Cisco Systems earlier in his career.

The value of controller experience for aspiring CFOs lies in several key areas:

1. Technical Accounting Expertise
2. Financial Reporting
3. Internal Controls
4. Audit Management
5. System Implementation
6. Cost Management

Value of Operational Experience for Tech CFOs

10% of tech CFOs in our dataset have substantial operational experience outside traditional roles in their area of expertise. While this percentage is lower compared to those with pure finance backgrounds, it highlights an emerging trend in the industry where these professionals are expected to have a broader understanding of business operations.

Examples from our dataset include:

• Kelly Steckelberg, CFO of Zoom, who served in various operational and financial roles before becoming CFO. 
• Ashim Gupta, CFO of UiPath, who held the role of Chief Customer Success Officer before becoming CFO. 
• Michael McLaughlin, CFO of Informatica, who was a Managing Director and Head of Technology Corporate Finance at Morgan Stanley before becoming CFO.

The value of operational experience for CFOs in the tech industry lies in several key areas:

1. Strategic Decision-Making
2. Cross-Functional Collaboration
3. Customer and Market Insights
4. Efficiency and Process Improvement
5. Revenue and Cost Drivers
6. Technology Implementation

Investment Banking Background for Tech CFOs

A notable minority (20%) of tech CFOs have investment banking experience. For example, David Obstler, CFO of Datadog, spent over two decades in investment banking, including roles at Morgan Stanley and Credit Suisse. 

This background offers unique advantages for CFOs. The fast-paced, high-growth nature of many tech companies aligns well with the skills developed in investment banking like financial analysis, valuation, and capital markets.

Other examples from our dataset include:

• Michael McLaughlin, CFO of Informatica, who was a Managing Director in Technology Investment Banking at Morgan Stanley.
• Todd McElhatton, CFO of Zuora, who started his career as a bank consultant.

The value of investment banking experience for tech CFOs lies in several key areas:

1. Financial Modeling and Valuation
2. Capital Markets Expertise
3. Deal-Making Skills
4. Investor Relations
5. Strategic Thinking
6. Networking

Notable Outliers in Career Paths

Some CFOs have taken less traditional paths. Patrick Pichette, former CFO of Google, held roles such as President of Operations at Bell Canada before becoming CFO. This diverse experience likely provides a unique perspective on the intersection of finance and operations.

Another interesting case is Dave Stepherson, CFO of Airbnb, who progressed from VP of Finance directly to CFO, skipping some of the typical intermediate finance leadership positions.

Key Takeaways on Career Progression for Tech CFOs

1. The path to CFO typically involves progression through various finance leadership roles.
2. Experience in FP&A and controlling are particularly valuable.
3. Operational experience can provide a broader business perspective.
4. Investment banking background, while not necessary, can be beneficial.
5. There's no single defined path - diverse experiences can lead to the CFO role.

Characteristics of First-Time Tech CFOs

60% of the CFOs in our study find themselves for the first time in the role. Meaning that most tech companies are willing to take a chance on first-time finance leaders who have demonstrated the necessary skills to do the job and have excelled in their performance metrics.

Our analysis reveals several interesting patterns among these first-time CFOs:

1. Internal Promotions: Approximately 40% of first-time CFOs were promoted from within their companies. This suggests that tech firms often prefer to groom internal talent for the CFO role.
2. Previous Roles: The most common positions held immediately before becoming CFO were:
   • VP of Finance (35%)
   • Chief Accounting Officer (20%)
   • VP of Financial Planning & Analysis (15%)
   • Treasurer (10%)
   • Other (20%)

3. Industry Experience: On average, first-time CFOs had 12 years of experience in the tech industry before assuming the role.
4. Total Work Experience: First-time CFOs in our study had an average of 18 years of total work experience.

Examples of notable first-time CFOs in our dataset include:

• Amy Hood, CFO of Microsoft: Hood joined Microsoft in 2002 and held various finance leadership roles, including CFO of the Business Division, before becoming the company's CFO in 2013. Her progression through Microsoft's ranks demonstrates the value of deep company knowledge and internal advancement.
• Luca Maestri, former CFO of Apple: Maestri became Apple's CFO in 2014, his first CFO role at a public company. Previously, he was CFO of Xerox's global technology business unit and had held senior finance roles at Nokia Siemens Networks and General Motors.
• Brian Olsavsky, CFO of Amazon: Olsavsky joined Amazon in 2002 and held various finance leadership roles, including VP of Finance for the global consumer business, before becoming CFO in 2015.

These examples illustrate that tech companies often value deep industry knowledge, company-specific experience, and a track record of progressive finance leadership over prior experience. 

The high percentage of first-timers CFOs in tech companies may be attributed to several factors:

1. Rapid Growth
2. Innovation Culture
3. Industry-Specific Knowledge
4. Talent Development

💡 The first 3 months for any job are the most important ones, particularly whe you're in charge of company's finances. Learn more about the best practices for the first 90 days of a CFO.

Is Prior CFO Experience Necessary for Tech CFOs?

While prior experience can be beneficial, it's not necessary to become a CFO at a major tech company. Companies appear to value a combination of factors, including:

1. Deep understanding of the tech industry
2. Strong track record in finance leadership roles
3. Strategic thinking and business acumen
4. Ability to navigate rapid growth and change

For first-timers, companies often promote from within or hire executives who have held roles very close to the position, such as VP of Finance or Chief Accounting Officer.

Key Takeaways on CFO Experience in Tech

1. 40% of tech CFOs had prior CFO experience, while 60% are in their first CFO role.
2. Prior CFO experience can be beneficial but is not necessary for landing a CFO role in tech.
3. Companies value a combination of industry knowledge, finance leadership, and strategic thinking.
4. First-time CFOs often come from roles close to the CFO position or are promoted from within.
5. Divisional CFO experience can be a valuable stepping stone to a full company CFO role.
6. Transitioning from Other Industries to Tech

Transitioning from Other Industries to Tech CFO Roles

On average, CFOs who transitioned from other industries spent about 12 years in finance roles before moving to the tech sector. However, this average masks a wide range of experiences, from those who moved to tech early in their careers to those who transitioned after decades in other industries.

R. Scott Herren, CFO of Cisco, spent over a decade at AT&T before transitioning to tech companies. His experience in adjacent industries was valuable to him when moving into tech finance leadership, but how did it work out for others?

Is a Tech Background Necessary for CFOs?

30% of the CFOs we researched spent a significant portion of their early career outside of the tech sector.

Key factors that seem to facilitate successful transitions include:

1. Strong financial acumen and leadership skills
2. Ability to adapt quickly to new business models
3. Strategic thinking and business partnership capabilities
4. Comfort with rapid change and innovation

For those transitioning from other industries, it's common to take on a senior finance role (such as VP of Finance) before moving into the CFO position. This allows for acclimation to the unique aspects of tech industry finance.

Notable Outliers in Transitioning to Tech CFO Roles

Some professionals in our study made particularly interesting transitions. For instance, Dave DeWalt, former CFO of McAfee, began his career in software development before moving into finance and eventually becoming CFO.

Another intriguing case is Keith Taylor, CFO of Equinix, who started his career in public accounting before transitioning to tech finance. His background in accounting provides him with a strong foundation for navigating the complex financial landscape of companies in the industry.

Importance of Strategic and Operational Experience for Tech CFOs

Approximately 45% of the careers we analyzed had experience in strategic or operational roles before becoming CFO. This highlights the importance of understanding the broader business context beyond just finance.

For example, Howard Wilson, CFO of PagerDuty, held roles such as Chief Commercial Officer and General Manager. This diverse experience provides a more holistic view of the business, enabling better financial decision-making.

💡 For more stories and career advice from finance leaders, don't forget to check out this year's best CFO podcasts.

Business Development and M&A Experience for Tech CFOs

About 30% of the CFOs in our study had experience in business development or mergers and acquisitions. This skill set is particularly valuable in the fast-paced tech industry, where growth often comes through strategic acquisitions.

A notable example is Manish Sarin, CFO of Sprinklr, who has extensive experience in investment banking and corporate development. His roles included Director of Investment Banking/M&A and Lead of Software Strategy & Corporate Development. 

Value of International Experience for Tech CFOs

Approximately 35% of the CFOs also had significant international experience. In an increasingly globalized tech industry, this exposure to different markets and regulatory environments is invaluable.

Elena Gomez, CFO of Toast, stands out with her experience as European Finance Director at Charles Schwab, providing her with a global perspective that's crucial in today's interconnected business world.

Board Experience for Aspiring Tech CFOs

Interestingly, about 25% of the CFOs in our study had experience serving on corporate boards before becoming CFO. This exposure to high-level strategic discussions and governance issues can be a significant asset in the CFO role.

CFOs with a Technical Background

While less common, about 15% of the CFOs had a technical background or degree. For instance, Ashim Gupta, CFO of UiPath, started his career in GE's Financial Management Program but also held the role of Chief Information Officer, blending financial and technical expertise.

Founders turned CFOs

Approximately 10% of the CFOs had founded or co-founded a company. This entrepreneurial experience can be particularly valuable in understanding the challenges of high-growth tech companies. A standout example is Dylan Smith, CFO of Box, who co-founded the company.

The importance of these diverse experiences cannot be overstated. In the dynamic tech industry, CFOs are expected to be strategic partners to the CEO, driving business growth and innovation. The ability to understand product development, market dynamics, and customer needs is crucial. Moreover, as technology increasingly intersects with finance (e.g., blockchain, AI in financial analysis), a broader skill set becomes even more valuable.

💡 Keep reading about the important relationships between CEOs and CFOs.

Conclusion: Key Insights for Aspiring Tech CFOs

The path to becoming a CFO in the tech industry is as diverse as the industry itself. While there's no one-size-fits-all approach, our analysis reveals several common threads:

• A strong foundation in finance, often starting with roles in accounting or financial analysis
• Diverse experiences across different finance functions and often in operational or strategic roles
• A willingness to embrace technology and its impact on finance
• The ability to think strategically and partner with other business leaders
• Continuous learning and adaptation to new challenges

Here are the key takeaways and advice for those aspiring to become CFOs in the tech industry:

1. Diverse Experience is Crucial: The path to CFO is rarely linear. On average, tech CFOs had experience in 3-4 different functional areas before becoming CFO. Seek out opportunities to work in various finance roles, and don't shy away from operational or strategic positions.

2. Education Matters, But Isn't Everything: While 68% of tech CFOs have an MBA, it's not a strict requirement. Focus on continuous learning, whether through formal education or on-the-job experience.

3. Tech Industry Experience is Valuable: 75% of CFOs in our study had significant experience in tech companies before becoming CFO. If you're not in tech, consider transitioning earlier in your career.
4. Build a Strong Network: Many CFOs in our study had long tenures at one or two companies before becoming CFO. Building strong relationships within your organization can be crucial for advancement.

7. Consider Starting in Public Accounting: While not a prerequisite, 35% of CFOs in our study started their careers at one of the Big 4 accounting firms. This can provide a strong foundation in financial principles.

8. Be Patient: On average, it took 16 years of experience before becoming a CFO. Focus on gaining diverse experiences rather than rushing to the top.

9. Seek International Experience: In an increasingly global business environment, international experience can set you apart. 35% of CFOs in our study had significant international experience.

The role of the CFO is evolving, particularly in the tech industry. Today's CFOs are expected to be strategic partners, technology advocates, and financial stewards. They need to balance traditional financial responsibilities with forward-thinking approaches to support rapid growth and innovation.

As you plan your career path, consider these insights and how they might apply to your unique situation. While the path to CFO may be challenging, it can also be incredibly rewarding, offering the opportunity to play a pivotal role in shaping the future of innovative companies.

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