Know Your CFO
While college and university chief business and financial officers are responsible for ensuring that their employees remain engaged and productive, how happy are they at work? Despite trying economic times, 90 percent of CFOs report being satisfied with their current position, with 41 percent saying they are very satisfied. That’s according to the 2010 Profile of Higher Education Chief Business and Financial Officers, a new survey published by NACUBO based on responses received from nearly 1,000 CFOs at NACUBO member and nonmember institutions, about half of whom hail from institutions with fewer than 4,000 full-time equivalent students.
The 2010 profile report, NACUBO’s first national census of CFOs at American higher education institutions, provides insight about career paths, areas of responsibility, and plans for career advancement, as well as basic demographics of CFOs at U.S. colleges and universities. The full publication is available for purchase from NACUBO’s Web site. Following are some highlights of the survey’s findings.
Demographic overview. According to data collected, the “typical” higher education CFO is a 55-year-old white male who has worked at his current institution for approximately seven years, has spent the majority of his career within higher education, and believes he will hold his current job until he retires. While there is little difference in the distribution of CFOs by gender between public and private institutions (30 percent of the CFOs at private institutions are women, compared with 33 percent at public institutions), women are less likely to serve as CFO at a comprehensive university, for instance (21 percent), versus at a community college (42 percent). Likewise, racial and ethnic minorities account for a very small share of current CFOs. In total, only 10 percent of survey participants identified themselves as persons of color, including 3 percent indicating they are Asian/Pacific Islanders and 5 percent African Americans.
Job pros and cons. When asked what factor would keep respondents most fulfilled in their current positions, only one quarter expressed a need for increased pay or other compensation, while half indicated that being appreciated by campus leaders or others within their communities was most important as a retention factor. While generally satisfied with their current position, 43 percent of participants identified “never enough money” as their biggest frustration. Nearly one quarter (24 percent) cited a belief held by others that the CFO is infinitely accessible to other campus staff as another source of frustration, followed by the difficulty of cultivating leadership in others, unresponsive campus governance, and campus infighting—each garnering 20 percent. Thirteen percent of respondents cited frustration due to unclear expectations and metrics of success.
Higher education longevity. Many CFOs have spent the majority of their careers employed at higher education institutions. In total, more than 60 percent of survey participants have spent at least half of their career in higher education, and 15 percent have spent their entire career within higher education. However, significant differences emerge with regard to career progression among CFOs by type of institution in which they are currently employed. About 51 percent of CFOs at comprehensive institutions have spent their whole careers in higher education, versus 35 percent of respondents at community colleges and 31 percent at small institutions. By contrast, about half of survey participants from small institutions came to their current position from outside of higher education, compared with only 29 percent at comprehensive institutions and 36 percent at research universities.
Career Path That Most Accurately Describes CFOs’ Progressions, by Type of Institution|
Came to current position |
Community Colleges |
Comprehensive Institutions |
Research Institutions |
Small Institutions |
Total |
| By moving in and out of higher education |
20% |
19% |
23% |
19% |
20% |
| From outside of higher education |
44% |
29% |
36% |
50% |
44% |
| Whole career spent in higher education |
35% |
51% |
41% |
31% |
36% |
Comprehensive and research institutions seem to have a greater share of CFOs who came directly from higher education. More than 80 percent of the CFOs at comprehensive and research institutions came to their current position from inside higher education; 38 percent and 29 percent of CFOs at small institutions and community colleges, respectively, were employed outside of higher education immediately before assuming their current position.
|
Immediate prior position |
Community Colleges |
Comprehensive Institutions |
Research Institutions |
Small Institutions |
Total |
| Inside higher education |
71% |
82% |
83% |
62% |
68% |
| Outside higher education |
29% |
18% |
17% |
38% |
32% |
Career progression. One apparent reason so many CFOs came to their current positions from inside higher education is that there appear to be good prospects or job mobility between institutions and for promotions from lower‐level jobs within the academy. Among the survey respondents who came to their current positions from inside higher education, chief financial/business officer was the most likely previous position, followed by associate or assistant vice president of finance, controller, and director of budget or finance.
Previous Position of Current CFOs Whose Immediate Past Position was at a Higher Education Institution|
Immediate past positions |
Percentage |
| Chief financial/business officer |
34% |
| Associate or assistant VP of finance |
20% |
| Controller |
18% |
| Director of budget or finance |
9% |
| Faculty |
2% |
| Internal auditor |
1% |
| Other position |
16% |
Knowledge, skills, and responsibilities. Nearly all chief financial officers have at least a bachelor’s degree, and 76 percent have an advanced degree—most commonly a master’s of business administration (MBA), held by 48 percent of responding CFOs. Twenty-eight percent of respondents hold some other master’s degree and 11 percent have a doctorate. Slightly more than one third (38 percent) of the CFO profile participants hold a certified public accountant (CPA) credential, possibly in conjunction with another advanced degree. When asked to cite the three most important skills for their jobs, nearly all CFOs (94 percent) selected finance and budgeting skills. Sixty percent believe communications skills are important, followed by human resources/staff management skills (43 percent). While the most common duties for business office leaders involve overseeing their institutions’ financial operations (budget, controller, purchasing, and bursar), two‐thirds or more of CFOs also have responsibility for the campus physical plant (75 percent), auxiliaries (70 percent), and human resources (67 percent). More than half also oversee endowment, internal audit, and public safety.
Career aspirations. When asked to speculate on their next career move, a plurality (40 percent) of survey participants said they planned to retire from their current position, 17 percent plan to seek a CFO position at a different college or university, while only 8 percent aspire to a campus presidency. About one quarter of the respondents remain undecided about their next career move.
