There is no complete & formative register of Finance Director appointments in the public domain as far as I know (and I should definitely know if there was!) It would be interesting to analyse the historical trends and comparatives in the same way that we can with the ONS data on unemployment (all the way back to 1974). We could look back at the peaks and link them to the emergence of new sectors, the health of the general economy and have another measure of business & candidate confidence. It would also allow us to see trends of high & low activity and (possibly) allow us to foresee the immediate future with a little more clarity. Sadly, there is no such register, but our team at Pratap Partnership have been analysing the number of CFO / FD appointments across Yorkshire and the East Midlands each quarter for the past five years – the data for the past quarter shows that the market over the past quarter has been one of the busiest quarters in these five years. The run rate for 2022 is on course to be the busiest year of new CFO / FD appointments across the region in this time.

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Having shared our research with some of our corporate finance and private equity partners, there is no surprise - the trends tally with the deal activity across the region. Our audit partners and banking Relationship Directors are similarly not surprised – there has been a major change in the demands of finance leadership over the past few years and this has led to inevitable change at the top of many organisations. There is, however, a sense of surprise with some who read this information – it is a clash with some of the messages of the mass media (talking us into a premature recession and an overwhelming focus on politics and macro-economic factors). We also seem to be only too keen to look forward and predict imminent disasters and crashes. I have no way of knowing what will happen in the future. (I am very fortunate to spend a talk to business leaders who are far more informed than I am every day – there is no consensus as to what the next twelve months hold anyway). The only message that I can communicate with full conviction is that there are so many good news stories across the Yorkshire and East Midlands business sectors over the past year – it is good to share some of these messages and to spread a little positivity.

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Looking at our last quarter (June to August 2022) and analysing all of the moves of CFOs and Finance Directors across the Yorkshire and East Midlands from our own activity and research;

The number of permanent appointments has grown from same period last year by 41% and 34% from the previous quarter.

The proportion of the appointments in the past quarter that are newly created roles is 13%. That is roles that are either created in growing businesses or created in restructuring. (We do not net these off against roles that are removed, but this is still a very positive figure)

35% of the appointments are within PE / VC backed businesses. This proportion has been consistent over the past four quarters. The majority of these appointments have come on the back of deal activity.

• The number of permanent appointments has grown from same period last year by 41% and 34% from the previous quarter.
• The proportion of the appointments in the past quarter that are newly created roles is 13%. That is roles that are either created in growing businesses or created in restructuring. (We do not net these off against roles that are removed, but this is still a very positive figure)
• 35% of the appointments are within PE / VC backed businesses. This proportion has been consistent over the past four quarters. The majority of these appointments have come on the back of deal activity.

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Breaking down the sectors, the three most active;

• Manufacturing and Engineering 24%
• Software & Technology 16%
• Public Sector & not-for-profit 15%
• All sectors are represented – Some have slowed slightly, but nothing that could yet be called a trend.

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We always present the latest gender diversity representation figures – 29% of finance leadership appointments in the last quarter have been to female candidates. Although this is down from the 36% of the previous quarter, the figures are moving more towards a balance over a three-year period. As with all EDI targets, there is no short-term fix on this, but rather a number of adjustments to people and recruitment strategies that need to be implemented. Momentum in the right direction rather than significant immediate changes appears to be a more realistic expectation.

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Over the next three months, our team are undertaking a deeper research project into the CFO and FD market – the features of the current cohort, dissecting the recruitment over the past year and looking at some of the salary and reward trends. I shall look forward to bringing that to our network before the end of the year (unless the recruitment side continues to be so busy that we are not afforded the time!)