EP 010 | Growth Under Pressure: What a CFO Learned Surviving the Insys Opioid Crisis: Darryl Baker

A CFO under pressure must stay calm, maintain integrity, and carefully evaluate the people they trust. During crises—whether DOJ investigations, cash crunches, or reputational damage—the best CFOs focus on cash visibility (13-week forecasts), transparent communication with stakeholders, and protecting their personal integrity while steering the company through turbulence. Surround yourself with honest people and don't let trust blind you to red flags.

TL;DR

• Cash is always king: Track your 13-week cash forecast weekly, no matter what else is burning.
• The people around you define your fate: Bad actors downstream can destroy careers at the top—vet your team rigorously.
• Trust, but verify: Even in high-growth euphoria, ask hard questions about sales and marketing practices.
• Stay in the pocket: Don't panic. Calm, rational leadership saves companies when emotions run high.
• Crises end: Dark seasons pass. Resilience and purpose-driven work emerge from the ashes.
• Purpose > profit: CFOs who tie finance to mission (especially in healthcare) create lasting impact and career fulfillment.

What Does It Feel Like When Your Company Becomes a National Scandal?

It was somewhere between 2015 and 2016 when Darryl Baker—public company CFO, father of six, Ernst & Young alum—started losing sleep.

Not because the numbers were bad. Quite the opposite.

Insys Therapeutics, the pharmaceutical company he'd helped take public in 2013, had become the top-performing IPO on the Nasdaq that year. Revenue from their flagship product, Subsys—a sublingual fentanyl spray for breakthrough cancer pain—had rocketed from zero to over $300 million annually.

But the narrative was shifting.

The opioid crisis was exploding into public consciousness. Fentanyl—prescription or otherwise—was becoming synonymous with death. And Insys, with its meteoric rise and aggressive sales tactics, was about to become the poster child for everything wrong with pharmaceutical marketing.

The DOJ came knocking. Colleagues were criminally convicted. The CEO went to prison—the first pharmaceutical CEO ever to face criminal charges for sales practices.

And Darryl? He wondered if he'd be next.

This is the story of what a CFO learns when the company implodes, trust shatters, and you have to rebuild your career—and your sense of self—from the ground up.

How Do You End Up in Finance in the First Place?

Darryl didn't stumble into finance. He was groomed for it.

His father—an adoptive parent who'd left farming in Canada to build a life in Southern California—saw something in young Darryl: an aptitude for numbers. And he had a role model in mind.

Darryl's Uncle Jack had been a public company CFO at Fleetwood Enterprises back in the 1960s, starting his career at Arthur Andersen and taking the company public. It was a path that combined technical mastery with high-stakes leadership. Darryl's dad invested alongside Uncle Jack and watched the investment pay off.

"I think you'd be good at that," his father told him.

Three of the four Baker boys ended up in finance.

Darryl followed the blueprint: accounting degree, CPA, five years at Ernst & Young in the Entrepreneurial Services Group. It was like an MBA without the tuition—exposure to early-stage companies, high-growth chaos, and the discipline of Big Four rigor.

But public accounting was never the endgame. It was the foundation.

The goal? To become a public company CFO, just like Uncle Jack.

What's the Real Secret to Reaching the C-Suite?

Here's what most people get wrong about becoming a CFO: they think it's about the technical chops.

It's not.

"You have to be technically competent," Darryl says. "But what really propels you to the next level is the ability to interact with people, to inspire and lead them."

Translation: You can be a wizard with Excel, GAAP, and EBITDA calculations. But if you can't translate that into a story that motivates your team, influences your CEO, or calms down panicked investors? You're stuck in the middle.

The best CFOs are translators. They take complexity and make it usable. They take uncertainty and make it navigable.

And in the age of AI? Darryl believes the human element becomes even more critical.

"AI will handle a lot of the data heavy lifting," he says. "But you still need humans who can interpret what the AI is producing and help steer decision-making. It's going to be a combination—AI and human intelligence."

The CFO Skillset in 2026:

1. Technical mastery (GAAP, FP&A, cash management, compliance)
2. Communication (board decks, investor calls, cross-functional alignment)
3. Emotional intelligence (reading the room, managing up and down)
4. AI fluency (understanding how to leverage automation and predictive analytics)
5. Risk assessment (knowing when to trust, when to verify, when to escalate)

What Happens When a $300M Product Becomes a Liability Overnight?

Subsys was supposed to be a miracle.

It was the sixth trans-mucosal immediate-release fentanyl product on the market, but it had a better delivery mechanism: a sublingual spray that patients could self-administer for breakthrough cancer pain.

Fentanyl had been used safely in hospitals for decades. Subsys went through Phase 2 and Phase 3 clinical trials. The FDA approved it in 2012.

And then it took off.

Zero to $300 million in revenue in less than three years.

"We really believed we were helping people experiencing breakthrough cancer pain find relief in a safe and effective way," Darryl recalls.

But by 2015, the opioid epidemic had reached fever pitch. Illicit fentanyl was flooding the streets. Overdose deaths were skyrocketing. And regulators, prosecutors, and the public were looking for someone to blame.

Insys fit the narrative perfectly: a pharmaceutical company with explosive growth, aggressive sales tactics, and a product containing one of the deadliest opioids on the planet.

The DOJ launched an investigation.

What they found: downstream sales reps who had misrepresented the product, pushed it to non-cancer patients, and used financial incentives that crossed ethical and legal lines.

The result: massive fines, bankruptcy, and criminal convictions—including the CEO.

Darryl's darkest fear? That the authorities would come for him next.

They never did. His hands were clean.

But the damage was done.

What Do You Tell Your Kids When Your Company Is on the News for All the Wrong Reasons?

Picture this: You're sitting at the dinner table with four teenagers. Your two oldest are away at college, watching from afar.

And every night, the news is running stories about your company. Your former colleagues. Your CEO in handcuffs.

"We had a lot of dinnertime conversations," Darryl says.

The themes?

• Integrity is everything. Your reputation is the only thing you truly own.
• The people you surround yourself with matter. Bad actors downstream can destroy leaders at the top.
• Honesty is non-negotiable. Even when it's hard. Even when it costs you.

Darryl's kids were watching their father navigate a nightmare. But they were also watching him hold his head high, maintain his integrity, and refuse to compromise his values.

"I really learned the hard way," he says, "how the people you associate with can have such an impact on you—either for good or for bad."

Could a CFO Have Stopped It? What Are the Red Flags?

This is the question that haunts Darryl.

Could he have done more? Should he have been more skeptical? More forceful?

"I could have been better at not being as trusting as I was," he admits. "I should have been a little more skeptical about some of the things that were happening, especially on the selling and marketing side."

Red Flags a CFO Should Never Ignore:

Explosive revenue growth with unclear drivers: Sales spike without clear customer acquisition strategy or market expansion. What to do: Dig into sales comp structures, customer acquisition sources, and sales rep behavior.

Vague answers from Sales/Marketing leadership: "Trust us, it's working" without data. What to do: Demand granular reporting—customer cohorts, rep-level performance, compliance audits.

Unusually high sales compensation: Reps earning multiples of industry norms. What to do: Audit comp plans for perverse incentives; ensure compliance review.

Customer complaints or regulatory inquiries: Signals from the field that something's off. What to do: Escalate immediately to Board, CEO, General Counsel; don't wait.

Cultural pressure to "not ask too many questions": "We're growing fast, don't slow us down" mentality. What to do: This is the biggest red flag of all—reassert finance's role as strategic partner and risk manager.

Darryl's Takeaway: "The company got in trouble because there were people who were dishonest and who did things that put the company in a very bad situation. And unfortunately, the highest level of leadership paid the price for people downstream who didn't do what they were supposed to do."

How Do You Rebuild After Your Company Implodes?

The Insys chapter closed with bankruptcy, prison sentences, and a shattered reputation.

For Darryl, it could have been career-ending.

Instead, it became the catalyst for a new chapter.

Today, Darryl works as a fractional CFO based in Scottsdale, Arizona. He partners with early-stage companies—many in healthcare—that are building products with purpose.

Two favorites:

1. Anuncio Medical
They make a device called Reflow Mini, which helps pediatric patients with hydrocephalus (excess fluid on the brain) keep their shunts flowing. This reduces the need for painful, expensive revision surgeries.

Darryl is helping them raise a $6 million Series A. They've closed $4 million so far.

2. NeoLight
They build devices that treat jaundice and retinopathy of prematurity in newborns—helping premature babies avoid vision loss and other complications.

One of his fellow board members? Ben Roethlisberger, the former NFL quarterback.

"I love working on things that have a direct impact on people's lives," Darryl says. "Especially in healthcare, where we can reduce waste, improve outcomes, and help patients and families."

The Fractional CFO Model allows Darryl to:

• Work with multiple clients at once (variety, fulfillment)
• Focus on purpose-driven companies (mission alignment)
• Apply decades of experience without the politics of a single company
• Help small companies access CFO-level talent they couldn't afford full-time

What's the One Metric Every CFO Tracks—No Matter What?

"Cash," Darryl says without hesitation. "Cash is king."

Specifically: the 13-week cash flow forecast.

Runway = the number of weeks (or months) your company can operate before running out of money, assuming current burn rate and no new capital inflows.

Why 13 weeks?

• It's a quarter—the natural rhythm of business cycles
• It's short enough to be actionable but long enough to see trends
• It forces you to confront reality every single week

How to Build a 13-Week Cash Forecast:

Step 1: List all expected cash inflows (customer payments, financing, grants)

Step 2: List all expected cash outflows (payroll, rent, vendors, debt service)

Step 3: Calculate net cash change each week

Step 4: Update actuals weekly and adjust assumptions

Step 5: Flag any week where ending cash drops below your minimum threshold (usually 4-8 weeks of burn)

What Role Will AI Play in the CFO's Future?

Darryl is bullish on AI—but with a caveat.

"You have people who think AI is going to take over the world," he says. "I believe it's going to be a combination of AI and human intelligence."

AI's Promise in Finance:

• Faster data aggregation (connect ERP, CRM, payroll, banking in real time)
• Predictive cash forecasting (scenario modeling based on historical trends)
• Anomaly detection (flag unusual transactions, vendor fraud, revenue leakage)
• Automated reporting (board decks, investor updates, management dashboards)

What AI Can't Do (Yet):

• Assess founder risk tolerance
• Navigate trust and interpersonal dynamics
• Make judgment calls in crisis ("Should we cut marketing or engineering?")
• Translate numbers into strategic narrative

"You still have to have humans who understand what the AI is producing and can help steer decision-making," Darryl says.

The Future CFO: Technical + Strategic + AI-Fluent + Emotionally Intelligent

What's the One Piece of Advice for a CFO in Crisis?

"Stay calm. Stay in the pocket."

Darryl uses a football analogy—appropriate, given his work with Ben Roethlisberger.

When a quarterback drops back to pass, the offensive line forms a protective pocket. If the QB panics and runs (Happy Feet), the play collapses. If he stays calm, trusts his line, and reads the field, he can execute the play.

"Sometimes the play breaks down," Darryl says. "And you have to adjust. But don't get overly emotional. Don't freak out. Just stay calm."

CFO Crisis Playbook:

Step 1: Assess the Situation
What's the immediate threat? (Cash? Legal? Reputation?) Who needs to know? (Board, investors, legal counsel, team)

Step 2: Communicate Transparently
Honesty builds trust, even in chaos. "Here's what we know, here's what we don't, here's what we're doing"

Step 3: Protect Cash
Cut non-essential spend immediately. Extend payables where possible (negotiate terms). Accelerate receivables (offer discounts for early payment).

Step 4: Document Everything
Legal exposure is real—keep a paper trail. CYA without being paranoid.

Step 5: Lean on Your Network
Other CFOs, advisors, fractional partners. You're not alone—use your bench.

Step 6: Remember: This Will End
Crises are finite. "It'll all work out" (Darryl's 94-year-old mother's wisdom)

What's the Unexpected Twist in Darryl's Story?

While navigating the darkest chapter of his career, Darryl felt an urge to connect with his biological father—a man he'd never met.

He'd been adopted as an infant by his parents (his real parents, he emphasizes). He'd met his biological mother in his twenties. But his biological father had always been a mystery.

Until the Insys crisis.

"I had this need to connect with him," Darryl recalls.

When they met, Darryl learned something stunning: his biological father had also worked in finance. He'd started his career at Arthur Andersen—the same firm Darryl's Uncle Jack had worked for.

"I think my dad, who adopted me, knew what my biological father did. And I think that's why he steered me in this direction."

Today, Darryl works professionally with his biological father on projects. It's a relationship that brings him joy, closure, and a deeper understanding of who he is.

"It's been a tremendous blessing," he says.

The Lesson? Even in the darkest chapters, there are threads of grace, connection, and unexpected gifts.

Episode 10 is live now on YouTube (https://buff.ly/J1cXlWG), Spotify (https://buff.ly/LH3coQK), and Apple Podcasts (https://buff.ly/lfxwkVV).

What Should Founders Look for in a CFO?

Based on Darryl's journey—from Big Four to public company to crisis to fractional leadership—here's what makes a great CFO:

✅ Technical Competence
CPA, Big Four experience, or equivalent depth. Fluency in GAAP, FP&A, cash management, fundraising, M&A.

✅ Communication Skills
Can translate numbers into strategy. Confident in front of boards, investors, and cross-functional teams.

✅ Integrity
Non-negotiable. Will tell you the truth even when it's uncomfortable.

✅ Calm Under Pressure
"Stay in the pocket" mentality. Doesn't panic when the play breaks down.

✅ Purpose-Driven
Cares about the mission, not just the math. Especially critical in healthcare, impact-driven, or mission-oriented companies.

✅ AI-Fluent
Understands how to leverage automation and predictive tools. Knows the limits of AI and when human judgment is required.

When to Hire a Fractional CFO:
Pre-revenue to ~$10M revenue. Need strategic finance but can't afford $250K+ full-time. Fundraising, board prep, or financial cleanup required. Want someone who's "been there" without the full-time commitment.

AdaptCFO is a fractional CFO and accounting firm for growth-stage startups in the US, providing strategic financial leadership for companies navigating scale, fundraising, and operational complexity.

DO YOU NEED A FRACTIONAL CFO? (SCORECARD)

Rate your company on each dimension (1 = low risk/need, 5 = high risk/need). If you score 15+, it's time to bring in a fractional CFO.

Cash Visibility:
1 = We have a rolling 13-week cash forecast updated weekly
3 = We have a rough cash projection updated monthly
5 = We don't have a reliable cash forecast

Fundraising Stage:
1 = No fundraising planned in next 12 months
3 = Exploring fundraising in 6-12 months
5 = Actively fundraising or need to in next 3 months

Revenue Stage:
1 = Pre-revenue or less than $500K ARR
3 = $500K–$5M ARR
5 = $5M+ ARR or scaling fast

Financial Reporting:
1 = We have clean books and monthly close in less than 10 days
3 = Books are decent but close takes 2-3 weeks
5 = Books are messy, we don't have reliable financials

Risk Exposure:
1 = Low regulatory/compliance risk, simple business model
3 = Moderate risk (healthcare, fintech, multi-state)
5 = High risk (pharma, heavy regulation, DOJ/SEC exposure)

Leadership Capacity:
1 = Founder has finance background and bandwidth
3 = Founder is learning but stretched thin
5 = Founder has no finance experience and is overwhelmed

Interpretation:

• 6-10: You might be fine with a controller or senior bookkeeper for now
• 11-18: A fractional CFO 10-20 hours/month would add significant value
• 19-30: You need a fractional CFO 20-40 hours/month, or should consider a full-time CFO

FAQ

Q: What's the #1 mistake CFOs make during a company crisis?
A: Panicking and losing the trust of their team. The best CFOs stay calm, communicate transparently, and focus on what they can control—cash, compliance, and stakeholder trust.

Q: How did Darryl Baker avoid criminal charges when his CEO went to prison?
A: He maintained personal integrity, stayed out of sales and marketing decisions that crossed ethical lines, and had documentation showing he operated honestly. Proximity to bad actors doesn't guarantee guilt if your conduct is clean.

Q: What's a 13-week cash forecast and why is it so important?
A: It's a rolling projection of cash inflows and outflows for the next 13 weeks (one quarter). It forces you to confront runway reality weekly and make proactive decisions before you're in crisis mode.

Q: Can AI replace a CFO?
A: Not yet—and maybe never fully. AI can handle data aggregation, forecasting, and anomaly detection, but it can't assess risk tolerance, navigate trust dynamics, or translate numbers into strategic narrative the way a human CFO can.

Q: When should a startup hire a fractional CFO vs. a full-time CFO?
A: Fractional CFOs work best for companies with $500K–$10M revenue, fundraising needs, or financial cleanup projects. Full-time CFOs make sense at $10M+ revenue, post-Series B, or when financial complexity requires 40+ hours/week of strategic finance leadership.

Q: What's the biggest red flag a CFO should never ignore?
A: Explosive revenue growth with vague explanations from Sales/Marketing leadership. If you can't trace growth to clear drivers—and if leadership resists your questions—dig deeper. Fast.

Q: How do you rebuild a career after a company scandal?
A: Focus on purpose-driven work, surround yourself with people of integrity, and double down on transparency and honesty. Darryl rebuilt by working with healthcare startups that save lives—mission alignment heals.

Q: What's the best career advice for someone who wants to become a CFO?
A: Master the technical side, but invest even more in your interpersonal skills. The CFOs who reach the top are the ones who can inspire teams, influence CEOs, and translate complexity into clarity.

NEED A CFO WHO'S BEEN THROUGH THE FIRE?

If you're a founder navigating a cash crunch, preparing for fundraising, or just realizing your books are a mess—you're not alone.

AdaptCFO works with growth-stage companies ($500K–$50M revenue) that need strategic financial leadership without the $300K+ price tag of a full-time CFO.

We've helped clients like PrizePicks (7000% revenue growth) and EncompassRX (acquired by CVS for $400M) build financial systems that scale.

Let's talk if:

• You're raising a Series A or B and need investor-ready financials
• Your runway is shrinking and you need cash visibility fast
• You're scaling and need someone who's navigated growth under pressure