financetom
News
financetom
/
News
/
With more CFOs being elevated to CEO, two search experts break down the most common paths to the top job
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
With more CFOs being elevated to CEO, two search experts break down the most common paths to the top job
Jan 18, 2024 7:08 PM

  The trend of CFOs transitioning into CEO or president roles is a growing phenomenon in the corporate world, as evidenced by recent appointments such as Murray Auchincloss at BP, who was promoted from CFO to CEO. Data from executive search firm Russell Reynolds Associates reveals that in 2023, 24% of S&P 500 CFOs changing jobs moved to CEO or president positions, a slight decrease from 33% in 2022 but still significantly higher than the 8.8% in 2021. The report suggests that the surge in CEO turnovers in 2022 created more opportunities for CFOs to ascend to the top leadership role.

  Another notable shift observed by RRA is CFOs taking on divisional CEO and COO roles en route to becoming CEOs or presidents. Jenna Fisher, Managing Director and Head of the CFO practice at RRA, pointed out that there has been a move away from capital markets-focused CFOs towards those with strong operational expertise over the past 18 to 24 months.

  Crist Kolder Associates also conducted research which showed that among current Fortune 500 and S&P 500 CEOs, 8.4% were previously CFOs, an increase from 5.8% a decade ago. This pathway is particularly common in consumer service industries and less so in healthcare. The study also highlights that external hiring for both CEO and CFO positions has increased after the pandemic's onset, while internal promotions from COO and president roles accounted for 50% of new CEOs.

  Examples of CFOs assuming COO titles include Amrita Ahuja at Block and Adrian Mitchell at Macy’s, and Michael Fiddelke, CFO of Target, was recently named COO, potentially positioning them as future CEO candidates.

  In other CFO moves, Olivier Leonetti was appointed EVP and CFO at Eaton, replacing Thomas B. Okray, while Julie Andrews took on the CFO role at Orthofix Medical Inc. Meanwhile, SP Global Market Intelligence reported a decline in global IPO launches in Q4 2023, reaching the lowest annual number since 2019, reflecting a cooling market environment.

  Additionally, a separate report by Phil Wahba examines how Fortune 500 companies are increasingly eliminating the chief marketing officer (CMO) role due to its diminishing influence within the C-suite, with fewer CEOs having marketing backgrounds compared to those with finance or operations experience. Lastly, Jennifer Moss and Jen Fisher emphasize in a new Fortune opinion piece that fostering hope in the workplace can have significant benefits for employee well-being and organizational success, urging leaders to prioritize rebuilding trust and hope in their strategic agendas.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Yen rebounds as stocks face selloff wave
Yen rebounds as stocks face selloff wave
Nov 18, 2025
The Japanese yen rose in Asian trading on Wednesday against a basket of major and minor currencies, as it attempted to recover from its nine-month low against the U.S. dollar. The currency is heading toward its first gain in four sessions, supported by increased buying at lower levels and renewed demand for safe-haven assets amid a global equities selloff. Following...
Who will ultimately foot the bill for the AI spending boom?
Who will ultimately foot the bill for the AI spending boom?
Nov 17, 2025
Theres an old saying in Washington: never believe anything until its been officially denied. And now that David Sacksdubbed the AI czar in the Trump administrationhas declared that there will be no federal bailout for AI, we can begin speculating about what that bailout might look like when it happens. It turns out that the chief financial officer of the...
Sterling loses ground, Dollar climbs before Nvidia results
Sterling loses ground, Dollar climbs before Nvidia results
Nov 19, 2025
The British pound edged lower on Wednesday after UK inflation data for October came in broadly in line with expectations, reinforcing speculation that the Bank of England may cut interest rates next month, while the U.S. dollar strengthened ahead of Nvidias earnings and key American data releases. At the same time, the Japanese yen touched a ten-month low against the...
Loonie dips after weak inflation data
Loonie dips after weak inflation data
Nov 17, 2025
The Canadian dollar fell against most major currencies on Monday following the release of weaker-than-expected inflation data. Government data showed that Canadas annual inflation rate eased to 2.2% in October, as gasoline prices declined, food inflation slowed, and mortgage-interest costs dropped below 3%, according to official figures released Monday. The removal of the carbon tax on gasoline earlier this year...
Copyright 2023-2026 - www.financetom.com All Rights Reserved