10 reasons CFOs are saying goodbye to their roles
Last year, chief financial officers (CFOs) left their roles at the fastest rate in six years, according to a report by executive search firm Russell Reynolds Associates. For business students aspiring to finance leadership roles, this data offers insight into the evolving pressures at the top—and what it might take to succeed.
What’s Driving CFO Turnover?
More than 15% of CFOs at the world’s largest listed companies left their posts in 2024.
Ten potential reasons for this high turnover include:
1. Digital Transformation Fatigue
CFOs are expected to lead finance digitalisation—from AI-driven forecasting to ERP overhauls. The constant pace of tech change can be exhausting, especially for those nearing retirement.
2. Evolving Role Expectations
CFOs are no longer just number-crunchers. They’re expected to be strategic advisors, ESG champions, and crisis communicators. Some may feel the role has outgrown their skill set or appetite.
3. Talent Shortages and Team Gaps
Leading a finance function with critical skill gaps (e.g., data analytics, sustainability reporting) can make the job harder. It’s tough to be effective without the right support.
4. Compensation Pressures
In some sectors, CFOs may feel underpaid compared to CEOs or peers in high-demand industries like tech and private equity—especially given the risk and visibility of their role.
5. Regulatory Burden
The expanding landscape of global regulation—around tax, sustainability, and financial reporting—adds complexity and personal liability. Some may leave before the rules tighten further.
6. Post-Pandemic Reassessment
Like many professionals, CFOs may have used the pandemic as a moment to reassess priorities—opting for early retirement, board roles, or portfolio careers that offer more flexibility.
7. Succession Planning in Motion
Some companies are actively refreshing their leadership benches. Boards may view internal CFO succession as a chance to build pipeline for future CEOs.
8. Geopolitical Uncertainty
Global tensions—from China-US relations to the Ukraine conflict—have increased the complexity of global operations. CFOs managing cross-border finance may find this too demanding.
9. Public Scrutiny
There’s increasing public and internal scrutiny over diversity, ethics, and transparency. CFOs may feel like they’re under a microscope more than ever.
10. M&A Activity and Restructuring
Mergers, acquisitions, and business model pivots often lead to leadership changes. CFOs may exit as part of restructuring, or due to cultural mismatch post-deal.
Where Are CFOs Going?
Interestingly, not all CFOs are bowing out under pressure. Some are moving up. A third of departing CFOs in 2024 became CEOs or company presidents. Another 54% transitioned into board or advisory roles—the highest number in six years.
But stress still plays a role. The average retirement age for CFOs has dropped to 56.6, the youngest in six years, suggesting burnout is real.
Who’s Replacing Them?
The pipeline of available external CFO candidates is shrinking. As a result, 54% of new CFOs were promoted from within—and those promoted internally tend to stay longer.
There’s also progress on diversity. Of the 275 new CFOs appointed in 2024, 70 were women—more than in any of the past six years. The tech and financial services sectors stood out, with women making up 36% and 39% of new CFOs respectively, more than double the previous year.
Lessons for Business Students
- Adaptability is key: CFOs need to be able to handle global uncertainty and market volatility.
- Board-level skills matter: CFOs are moving into CEO and board roles—students should cultivate leadership, not just financial analysis.
- Internal mobility is real: Starting in a company and rising through the ranks remains a viable route to the top.
- Diversity is increasing: There’s momentum behind gender representation in finance leadership.
As you plan your career path, remember: the CFO role is evolving fast. Understanding the pressures, expectations, and opportunities now can give you a crucial edge later.
