BrazilCFO turnover at listed companies on a high amid pressures and retirements
The number of CFO that left their role reached its second highest level ever last year, driven by a range of challenges such as corporate pressures, investor activism, market disruption, inflation and changing regulation. That is according to new research from Russell Reynolds Associates.
The inaugural Global CFO Turnover report from the human capital consulting firm and leadership headhunter found that 15% of CFOs at the world’s largest listed companies left their posts in 2024, just shy of 2023’s record turnover of 16.2%. The S&P 500 and FTSE 250 both saw the highest level of CFO turnover in six years, with the former matching the peak set in 2021.
The report from Russell Reynolds Associates tracked the comings and goings of CFOs from 12 global indices worldwide, showing that high pressures have forced many out of their role. These expectations come with a growing remit for the CFO, highlighted the report’s authors.
“Much is expected of today’s CFOs. Not only do they need to have strong business acumen, and be a highly effective communicator and influencer, but they also need to understand how to use AI to drive efficiencies and have a clear view on the impact of geopolitics.”
“The modern CFO’s responsibilities within an organization have expanded far beyond a traditional accounting role. Technological developments, geopolitical disruptions and regulatory challenges now fall within the remit of a CFO, who must also act as an intermediary and communicator for boards and investors.”
Another key driver of high turnover has been the high retirement rate of CFOs. In 2024, 54% of outgoing CFOs retired or moved exclusively to board roles, an increase of up to 1000 basis points year-over-year. Notably, the average age of retirement or transitioning to a board portfolio is 56.6 years old – the lowest average in six years.
From CFO to CEO
One notable finding of the study is that a growing share of CFOs are moving into CEO roles. Of 2024’s outgoing CFOs, 34% moved onto President or CEO roles, while 15% went to divisional CEO roles. “More and more CFOs want to become CEOs,” said Jenna Fisher, partner at Russell Reynolds Associates.
In terms of incoming CFOs, more than half of those installed were appointed from within. Internally-appointed CFOs tend to have longer tenures – 6.5 years on average, as opposed to 5.9 years for those externally appointed – showing the value of internal succession planning.
In the Middle East, local market experience is another factor that is high on the agenda during search processes, said Burak Gorbon, partner in the Middle East business of Russell Reynolds Associates. “Companies are prioritizing candidates who understand the regional legal framework, regulatory landscape, and unique market dynamics. Investing in local finance talent is essential for future regional success.”
