01

Year-to-date CFO turnover remains high

A total of 224 new CFOs were appointed in Q1-Q3 2024, just shy of the record turnover witnessed in the same period in 2023, when 233 new CFOs were appointed. This high CFO turnover is driven by a particularly active S&P 500, which reached a year-to-date three-year high, S&P TSX Composite, which reached a year-to-date five-year high, and the FTSE 250, which remains on par with last year's record in Q1-Q3 2024.

There have also been some industry fluctuations that have impacted CFO turnover in 2024. The healthcare and technology industries recorded two-year and five-year highs of 18.9% and 15.2% respectively in Q1-Q3 2024. Increased retirement rates, high CEO turnover at the end of 2022 and 2023 within those industries, and lower market performances over the past two years have many rethinking their next CFO.

02

Gender diversity strides continue to be made.

While women remain underrepresented in the CFO role (e.g., the S&P 500 is 42 years away from gender parity), in Q1-Q3 2024, of the 224 CFOs appointed, 60 were women—the highest number of women CFO appointments in the past five years.

The technology and financial services industries, in particular, have made large strides in gender diversity. In 2024, 38% of technology and 48% of financial services incoming CFOs were women, which is twice as high as last year's numbers, and the highest proportion since 2021 records.

To build on this progress and achieve true gender balance in the CFO role, organizations must continue to build robust and diverse internal pipelines and invest in structured sponsorship programs that target underrepresented groups.

03

CFOs are staying in role for shorter tenures and retiring at a higher rate.

The average tenure of an outgoing CFO has reached a five-year low of 5.6 years. Additionally, more CFOs are retiring, with 52% of outgoing CFOs retiring or moving to board roles exclusively, up 11 percentage points year-over-year, reaching a five-year high.

CFOs approaching retirement may not seek another CFO role due to factors like burnout, financial security, or simply deciding that retirement seems the more attractive option. Instead, many are leveraging their finance expertise in various board roles.

04

Over half of CFOs are internal appointments.

CFO succession plans are coming to fruition for some with 55% of global incoming CFOs appointed internally.

But certain indices are more successful at promoting internal CFO talent than others. The Nikkei 225 and Hang Seng’s CFO appointments were almost exclusively internal, but in more Western indices, there is more reliance on external appointments.

For those externally appointed, experienced CFOs are increasingly favored. The highest percentage of experienced CFO appointments in the past five years was recorded in Q1-Q3 2024, as some organizations continue to navigate complex economic markets and succession plans fail to materialize.

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A Flight Risk

CFO Turnover in 2022 Slows, But Don’t Expect
it to Stay

2021: The year of CFO turnover and strides in gender diversity