In our business environment of inflation, increasing cost of capital, and shrinking profit margins; organizations are looking more toward the CFO and their finance teams for strategic answers to navigate uncertainty. Just like in the fields of cybersecurity, AI, and supply chain, there is a demand for finance and business expertise from the CFO.
In a recent WSJ article, “CFOs at companies in the S&P 500 and Fortune 500 on average stay about five years in their job, a figure that hasn’t changed much in recent years, according to Crist Kolder Associates, an executive search firm. Companies have to make sure to keep CFOs engaged so that they don’t get tempted by outside offers—before and after they hit the five-year mark—said Peter Crist, chairman of the firm.”
In the last few months, the following companies have given their CFOs the title of the president:
AbbVie Inc.
Newell Brands Inc.
Walker & Dunlop Inc.
Many times, the CFO gains oversight of IT, some operations, and real estate to expand their responsibilities to prepare for the COO or even the CEO. The move from the CFO role to CEO is much less frequent but can happen. A recent example is Stanley Black and Decker of this c-suite change.
The next 12 to 24 months will put more pressure on finance expertise. Companies that have forward-looking, strategic solution-orientated finance leaders including the CFO will be key assets in navigation risk.
