CFO turnover rises, driven by robust IPO market

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十二月 08, 2021
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DiversitySuccession PlanningFinanceC-Suite SuccessionExecutive SearchDiversity, Equity, and Inclusion Advisory
EXECUTIVE SUMMARY
A dive into current CFO turnover trends.
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Excerpt from the article originally published in CFO Dive by Jim Tyson

Russell Reynolds Associates research on CFO turnover trends was featured in CFO Dive.

CFO turnover is especially high this year among consumer retail and industrial companies, Russell Reynolds said. Companies in these sectors “have had to pivot dramatically due to COVID-19-induced issues such as supply chain disruption and local regulations imposing new operational restrictions.”

An increasing proportion of companies are filling the CFO spot by promoting from within, Russell Reynolds said, adding that “for companies that had succession plans in place, the benefits have started to become clear.”

CFOs promoted internally this year have an average tenure within their companies of 13 years, Russell Reynolds said.

Competition is intense for external hires to the CFO slot, “driven by high levels of activity in private equity, in addition to SPACs [special purpose acquisition companies].” CFO experience is prized, with 84% of externally appointed finance chiefs having served as a CFO compared with 75% last year.

Gender diversity has increased among CFOs in 2021, with women taking 33% of the new openings so far this year compared with 17% in all of 2020, Russell Reynolds said.

The rise of women “points to the benefit of succession planning,” Russell Reynolds said. “More than 80% of newly-minted women CFOs were internal appointments, as many companies have turned inwards to develop and promote women in finance.”

To access the full article, click here.