The
Global CFO Turnover Index 2024 Q2, published by Russell Reynolds Associates, a management consultant firm,
revealed several key trends. First, 163 new CFOS were appointed in the first half of 2024, out of 1,822 global companies researched. After slower starts in 2022 and 2023, the rate of turnover reached 8.9 percent in the first half of 2024. “This high indicates that as economic uncertainty becomes the new normal for organizations, previous trepidation to replace CFOs has dissipated,” according to the report summary.
Of those 163 new CFOs, 44 were women—the highest number of women CFO appointments in the past five years. The technology industry in particular has made large strides in gender diversity; 38 percent of incoming tech CFOs were women, the highest proportion since 2021.
The Journal reported that, at the end of 2023, 18.5 percent of CFOs at Fortune 500 and S&P 500 companies were women, according to an annual Crist Kolder Associates report, a figure that nearly doubled over the course of a decade.
The index also reported that CFO tenures are becoming shorter, with the average tenure of an outgoing CFO reaching a five-year low of 5.7 years in the first half of 2024. Fifty-four percent of outgoing CFOs left to retire or move to board roles exclusively, up by 15 percentage points year-over-year—a five-year high. The report explained that “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.”
Another finding was that more than half of new CFOs were internal appointments, with 56 percent of global incoming CFOs being appointed internally in the first half of the year.
When CFOs were hired from the outside, experienced CFOs were increasingly favored. In the first half of 2024, there was the highest percentage of experienced CFOs recruited into the role in the past five years.
Another finding was that the health care and technology industries experienced the highest rate of CFO turnover. These industries recorded three-year highs of 14.2 percent and 11.4 percent, respectively in the first half of the year.