Public company CFOs have stressful jobs. Their lot of responsibilities is constantly expanding, and many finance chiefs are now responsible for managing their firm’s response to technological developments, geopolitical disruptions, regulatory changes and climate initiatives. As their remit has grow, so has the scrutiny they face from stakeholders, boards and activist investors. CFOs are being pressured to deliver strong performance at a time of considerable macroeconomic uncertainty.
It is little wonder that finance chiefs are abandoning the job at record rates. More than 15% of CFOs at the world’s largest listed companies left their posts in 2024, according to the latest Global CFO Turnover Index by Russell Reynolds Associates (RRA), a management consultancy. This is just shy of 2023’s record of 16.2% and above the six-year average of 14.8%.
The report, which tracks the comings and goings of CFOs from 12 global indices, also reveals the average age of retirement or transitioning to a board portfolio is 56.6 years – the youngest average age recorded in six years.
Unease among public company finance chiefs around the world appears to be growing. And the report’s findings suggest that there are structural and personal factors contributing to the CFO churn.
What’s driving departures?
One key driver is the high retirement rate of CFOs. Of 2024’s outgoing finance chiefs, over half (54%) retired or moved exclusively to board roles. Faced with increasing market pressure, even the most loyal CFOs, who stayed at their posts over the past few years, are leaving. Meanwhile, the demand for qualified financial experts on boards continues to grow.
Ben Jones, co-head of RRA’s European CFO practice, explains: “Market pressure on the CFO is fierce given some of the uncontrollables in the global context, such as regulation, tariffs and inflation. It makes it a demanding role with increasing levels of stress.”
He points to the impact on the healthcare sector, for example, where 60% of CFOs retired or moved to a board role in 2024, well above the global average of 54%. “Given the valuations that exist within healthcare in particular – and therefore where performance sits within that sector – there must be a link between performance and turnover.”
More than a third of outgoing CFOs (34%) moved to a president or CEO role and 15% to another C-suite position, including corporate strategy and risk.
CFOs are becoming more aware of their value in the market. Thanks to the expansion of their responsibilities, finance chiefs have many more options than they had in the past. Experienced CFOs are now considering alternative roles, including chief executive, chief operating officer or private equity partner.
It’s not uncommon for boards to view finance chiefs as CEOs-in-waiting. But CFOs are increasingly opting out of roles at listed companies, and instead moving to private-equity portfolio companies earlier in their careers. Not only are there fewer regulatory pressures at non-listed companies, but they often offer bigger pay packages too.
Hiring patterns
The data reveals a shift in CFO hiring patterns, with experienced hires (those that have previously served as a public company CFO) accounting for 40% of all CFO hires globally. This is up from the five-year average of 36% and the highest level recorded.
The current combination of higher CFO turnover and shorter tenures, however, is significantly impacting the availability of talent. There is a limited supply of experienced CFOs and, as tenures get shorter, the pool of adequate candidates has shrunk. Indeed, more than half (54%) of incoming CFOs were appointed internally in 2024.
A general slump in company valuations in the past 12 months means CFOs are under pressure to revive share prices. As a result, businesses are showing a clear preference for experienced CFOs who are able to enact change quickly and boost performance in tough times.
The trend poses a problem for companies without a succession plan in place for the CFO role. The experience and skills of talented finance chiefs cannot be replaced by a quick hire
Diversity remains an issue
Of the 275 CFO appointed in 2024, 70 were women – the highest number in six years. Overall, women remain under-represented in the CFO role. However, a focus on succession planning practices has clearly helped to improve gender diversity. Over half of new female CFOs (54%) were internal appointments.
There are also regional nuances. In the UK, there is still a lack of gender diversity on display in the FTSE 100, where just eight female CFOs were hired, representing 32% of all appointments. Meanwhile, 23 women CFOs were appointed in the S&P 500 and 10 were appointed in the ASX 200, representing 32% and 26% of all appointments respectively.
The report notes that high demand for diverse boardrooms is currently contributing to the lower number of women in CFO roles.
Today’s CFOs face a multitude of challenges, from technological advances to economic volatility. Even for seasoned finance chiefs, the pace of change can be exhausting. For those ascending to the role for the first time, the current environment is particularly challenging.
Public company CFOs have stressful jobs. Their lot of responsibilities is constantly expanding, and many finance chiefs are now responsible for managing their firm’s response to technological developments, geopolitical disruptions, regulatory changes and climate initiatives. As their remit has grow, so has the scrutiny they face from stakeholders, boards and activist investors. CFOs are being pressured to deliver strong performance at a time of considerable macroeconomic uncertainty.
It is little wonder that finance chiefs are abandoning the job at record rates. More than 15% of CFOs at the world’s largest listed companies left their posts in 2024, according to the latest Global CFO Turnover Index by Russell Reynolds Associates (RRA), a management consultancy. This is just shy of 2023’s record of 16.2% and above the six-year average of 14.8%.
The report, which tracks the comings and goings of CFOs from 12 global indices, also reveals the average age of retirement or transitioning to a board portfolio is 56.6 years – the youngest average age recorded in six years.
Unease among public company finance chiefs around the world appears to be growing. And the report’s findings suggest that there are structural and personal factors contributing to the CFO churn.
What’s driving departures?
One key driver is the high retirement rate of CFOs. Of 2024’s outgoing finance chiefs, over half (54%) retired or moved exclusively to board roles. Faced with increasing market pressure, even the most loyal CFOs, who stayed at their posts over the past few years, are leaving. Meanwhile, the demand for qualified financial experts on boards continues to grow.
Ben Jones, co-head of RRA’s European CFO practice, explains: “Market pressure on the CFO is fierce given some of the uncontrollables in the global context, such as regulation, tariffs and inflation. It makes it a demanding role with increasing levels of stress.”
He points to the impact on the healthcare sector, for example, where 60% of CFOs retired or moved to a board role in 2024, well above the global average of 54%. “Given the valuations that exist within healthcare in particular – and therefore where performance sits within that sector – there must be a link between performance and turnover.”
More than a third of outgoing CFOs (34%) moved to a president or CEO role and 15% to another C-suite position, including corporate strategy and risk.
CFOs are becoming more aware of their value in the market. Thanks to the expansion of their responsibilities, finance chiefs have many more options than they had in the past. Experienced CFOs are now considering alternative roles, including chief executive, chief operating officer or private equity partner.
It’s not uncommon for boards to view finance chiefs as CEOs-in-waiting. But CFOs are increasingly opting out of roles at listed companies, and instead moving to private-equity portfolio companies earlier in their careers. Not only are there fewer regulatory pressures at non-listed companies, but they often offer bigger pay packages too.
Hiring patterns
The data reveals a shift in CFO hiring patterns, with experienced hires (those that have previously served as a public company CFO) accounting for 40% of all CFO hires globally. This is up from the five-year average of 36% and the highest level recorded.
The current combination of higher CFO turnover and shorter tenures, however, is significantly impacting the availability of talent. There is a limited supply of experienced CFOs and, as tenures get shorter, the pool of adequate candidates has shrunk. Indeed, more than half (54%) of incoming CFOs were appointed internally in 2024.
A general slump in company valuations in the past 12 months means CFOs are under pressure to revive share prices. As a result, businesses are showing a clear preference for experienced CFOs who are able to enact change quickly and boost performance in tough times.
The trend poses a problem for companies without a succession plan in place for the CFO role. The experience and skills of talented finance chiefs cannot be replaced by a quick hire
Diversity remains an issue
Of the 275 CFO appointed in 2024, 70 were women – the highest number in six years. Overall, women remain under-represented in the CFO role. However, a focus on succession planning practices has clearly helped to improve gender diversity. Over half of new female CFOs (54%) were internal appointments.
There are also regional nuances. In the UK, there is still a lack of gender diversity on display in the FTSE 100, where just eight female CFOs were hired, representing 32% of all appointments. Meanwhile, 23 women CFOs were appointed in the S&P 500 and 10 were appointed in the ASX 200, representing 32% and 26% of all appointments respectively.
The report notes that high demand for diverse boardrooms is currently contributing to the lower number of women in CFO roles.
Today’s CFOs face a multitude of challenges, from technological advances to economic volatility. Even for seasoned finance chiefs, the pace of change can be exhausting. For those ascending to the role for the first time, the current environment is particularly challenging.
