Chief Accounting Officer search
A Chief Accounting Officer leads accounting and external reporting, usually at a public company or one preparing to list. You get a search focused on technical accounting depth, SEC reporting experience and the judgment to keep your auditor relationship on a solid footing.
The Chief Accounting Officer role and its market
The CAO reports to the CFO and owns the monthly and quarterly close, technical accounting and the SEC reports, including the 10-K and 10-Q. That covers areas such as revenue recognition under ASC 606 and lease accounting under ASC 842, along with internal controls under Sarbanes-Oxley. The CAO is usually the main day-to-day contact for the external audit partner and often presents to the audit committee. At an IPO-track company the job also includes building the public company reporting function before the listing.
A CPA is expected, and many candidates spent their early career in Big Four audit before moving into industry as controllers or assistant controllers. Strong CAOs are not easy to move, since they are often the person the CFO cannot afford to lose. Searches go wrong when a company hires a capable controller who has never owned SEC reporting, or a technical specialist who cannot run a close team. Both gaps show up in the first quarter.
What sets a strong Chief Accounting Officer apart
Each of these can be tested in interview or through references before an offer.
- SEC filings signed off
- Ask which filings they owned and how many cycles. Their former CFO and audit partner can confirm the depth.
- Technical judgment
- Have them talk through an ASC 606 or ASC 842 judgment call they made, and how they documented it for the auditor.
- Clean control history
- Ask about material weaknesses or significant deficiencies on their watch, and how they were found and fixed.
- Close discipline
- Strong candidates can explain how they shortened or steadied a close without adding errors. Their controllers should back that up.
How we assess Chief Accounting Officer candidates
Candidates meet the CFO, the controller team they would lead and usually the audit committee chair in structured interviews. Finalists work through a technical accounting scenario based on your business, such as a multi-element contract, a new lease portfolio or an acquisition's opening balance sheet. CPA licenses are verified. References include former CFOs, audit partners and members of their own close team, taken on and off the candidate's list.
What shapes Chief Accounting Officer compensation
CAO pay depends on company size, whether the company is public or preparing to list, and the size of the accounting organization. The package usually combines base salary, an annual bonus and long-term incentives, typically equity awards at a public company or options at a pre-IPO company. Retention awards are common around an IPO. Location matters, as many CAO roles sit at headquarters. We agree the package with the CFO and compensation committee before the search begins.
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Hiring a Chief Accounting Officer: common questions
How long does a CAO search take?
A CAO search usually runs a few months from brief to accepted offer. Timing depends on how specialized your accounting issues are, the location and the candidate's need to finish a reporting cycle before leaving.
Do we need a CAO before an IPO?
Many companies hire a CAO well before listing so the close, controls and reporting are in place when the registration statement is filed. Auditors and underwriters will look closely at the accounting function.
Should candidates have a Big Four background?
Most strong CAOs started in public accounting, often at a Big Four firm. Several years in industry as a controller or CAO since then matters just as much.
What is the difference between a CAO and a controller?
Titles vary. In many public companies the CAO is the principal accounting officer who signs filings and leads the controllers, while a controller runs the close for the company or a division.
Discuss your Chief Accounting Officer search
Send the title, the reporting line, the ownership of the business and when you need the person in place. We will reply to set up a call about the brief.
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