Cowen Partners Explains Why PE-Backed CFOs Are Prioritizing Cash Over Equity
Cowen Partners Executive Search President Shawn Cole was quoted in CFO Brew, providing expert analysis on why CFOs at private equity-backed companies are increasingly favoring cash compensation over equity packages.
In the article “PE-backed CFOs are favoring one form of pay over another,” CFO Brew’s Demi Lawrence explored the shift in compensation preferences among finance leaders, citing a survey showing average base salaries for PE-backed CFOs rose 7% while cash bonuses declined 2%.
Key insights from Shawn’s commentary:
- Extended Hold Times Driving Cash Preferences: Experienced PE-backed CFOs are coming from “extended hold times” where PE firms took longer than traditional timelines to exit investments. These veterans are telling new backers: “This story you’re telling me, and this exit you’re going to do, that’s awesome. Been there, done that, just pay me cash.”
- Equity Skepticism Among Veterans: “Equity doesn’t really motivate [prospective PE-backed CFOs] because they don’t really believe in it,” Shawn explained. “Sure, it’s sort of the golden handcuffs if it all works out—but they’ve already played that game a few times.”
- Shrinking Candidate Pool: Many experienced CFOs are retiring en masse, with candidates telling recruiters, “I’m not interested, this is going to be my last job.” This trend is causing increased competition as the talent pool decreases.
- Advice for Aspiring PE CFOs: Shawn recommended that finance executives evaluate both the potential for success and apply realistic assessment to equity offerings. “They need to understand where the company has been and where the company’s going,” and ask critical questions about historical bonus payout rates.
- Size and Scale Matter: “Compensation is based on size and scale of the organization, so if you’re reviewing an offer from a $50 million company, that’s going to be very different than being offered a $300 million company.”
The CFO Brew article noted that longer expected hold periods and extended time to exit are heightening candidates’ focus on negotiating higher base cash compensation upfront, as CFOs realize that higher base salaries mitigate the risk of delayed equity realization.
Read the full CFO Brew article for complete coverage of PE-backed CFO compensation trends.
About CFO Brew
CFO Brew is a leading digital publication from Morning Brew Inc. that serves chief financial officers and finance professionals with essential news and insights on risk management, compliance, strategy, talent management, and corporate finance trends. Through its daily newsletter, virtual events, digital guides, and in-depth resources, CFO Brew delivers timely analysis and practical guidance that helps finance leaders navigate the complexities of their evolving roles. The publication covers everything from SEC regulatory changes and treasury operations to AI adoption in finance and executive compensation trends, making it a trusted resource for CFOs and senior finance executives seeking to stay ahead of industry developments.
About Cowen Partners Executive Search
Cowen Partners Executive Search is a leading national executive search firm, known for placing world-class C-suite leaders, board members, and senior executives across industries.
Specializing in finding and recruiting top talent, we provide clients with comprehensive access to the executive marketplace, ensuring that each search is tailored to the unique needs of the organization. Our clients benefit from a proven track record of delivering high-impact leaders who drive growth, innovation, and performance.
At Cowen Partners Executive Search, we go beyond traditional executive search by offering strategic insights and expertise that help companies build high-performing teams and navigate complex market challenges.
Whether it’s sourcing transformative CEOs, CFOs, or board directors, we are committed to excellence, transparency, and results-driven solutions, making us the trusted partner for businesses looking to thrive in today’s competitive landscape.
About Shawn Cole, President & Cofounder
Shawn Cole is a serial entrepreneur and executive leader with over 15 years’ experience founding and running successful companies. Shawn’s business career has been centered on value creation for both turnarounds and startups.
Shawn is President and Co-Founder of Cowen Partners Executive Search, a national CFO executive search firm focused on the key elements of a successful business: sales, marketing, and finance. Business clients across the country trust Cowen Partners Executive Search to take their companies to the next level by finding them executive talent, such as a CEO, CFO, COO, Chief Revenue Officer, and Chief Marketing Officer. Clients are both small and large, publicly traded, pre-IPO, private, and non-profit organizations.
An active participant in the business community and startup space, Shawn Co-Chairs The Cowen Partners Venture Fund, which provides seed funding and early-stage investments, focusing on market disruptors in niche markets, community businesses, and minority entrepreneurs.
Shawn attended Oregon State University’s College of Business Austin Entrepreneurship Program and participated in a first-of-its-kind experiential entrepreneurship experiment at Weatherford Hall. He was also a Founding Member and President of Oregon State University’s Students in Free Enterprise, an international non-profit organization working with university students who want to positively change their communities and learn practical knowledge to become socially responsible business leaders.
At the age of 16, Shawn became a volunteer firefighter and EMT, eventually founding and managing a half-marathon to raise funds for the community. To date, he has raised over one million dollars benefiting the community.
As trailblazing leaders in executive search, Cowen Partners Executive Search is also an innovator that routinely develops groundbreaking resources to empower better insights, decisions, and understandings of what it takes to recruit and retain top talent in today’s C-suites. Explore some of our elite resources below to see why Cowen Partners Executive Search continues to be a top executive search firm nationwide.
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