Companies clamor for top CFOs as demand outpaces supply

Good morning. If you’re an effective, experienced finance chief, you’re wanted by most companies. I sat down with Jenna Fisher, co-head of Russell Reynolds Associates’ Global Financial Officers Practice, to discuss the firm’s latest research and what she’s seeing. 

“There is so much demand for CFOs,” Fisher told me. “We're not getting talent, by and large, from the accounting firms; it's still selectively coming from the investment banking firms,” she said. And unlike 10 or more years ago, there isn’t the same pipeline of CFO stars birthed from executive development programs at industrial conglomerates, she explained.

One example is GE, which had a robust program to develop executives. Its alumni include Delta CFO Dan Janki who, before taking on his current role in 2021, spent more than 25 years at GE, getting his start in the company’s financial management program. (GE is no longer a conglomerate but now three separate public companies.)

RRA, a global leadership advisory and executive search firm, is already focused on the question: Where is the next generation of CFO talent coming from?  

“I don't yet know the answer to this,” Fisher said. “I think being a CFO is such a phenomenal career. But we do not have enough of them.” 

That’s evident in RRA’s 2024 Global CFO Turnover Index Annual Report, which finds that global CFO turnover reached 15.1% in 2024, just below the record turnover witnessed in 2023 at 16.2%. The average outgoing CFO tenure is at a six-year low of 5.8 years in 2024. And, 54% of outgoing CFOs retired or moved exclusively to board roles last year. The report is a composite of several indexes such as the S&P 500, FTSE 100, and ASX 200. 

The S&P 500, in particular, saw its highest CFO turnover in six years, matching the peak set in 2021. And at these large U.S. companies, retirement rates increased year-over-year, reaching a six-year high in 2024, according to the research. The pool of experienced CFOs continues to decrease as transitioning CFOs continue to move to non-CFO roles.

An increasingly complex job

Fisher anecdotally shared insight on why some finance chiefs are eyeing retirement. The capital markets have performed so well for so long, and execs may have saved money to the point where they’re financially in a good place to retire, she said. And in retirement, they can be an active board member.

Also, the job of CFO is becoming evermore complex, Fisher said. The broadening of the position now can mean taking on an additional role like chief operating officer, or having the IT team report to the CFO for example. 

That’s part of why many companies want finance chiefs who’ve earned their stripes. In 2024, 40% of global CFO appointments were experienced CFOs—the highest percentage in six years, according to RRA.

But as it becomes more competitive to hire experienced CFOs, it’s a good time for aspiring finance chiefs to throw their hats in the ring. “There just simply are not enough people to fit all of the seats that are open, which is why we continue to see first-time CFOs get the nod,” Fisher said. 

Sheryl Estrada
sheryl.estrada@fortune.com

This story was originally featured on Fortune.com