Tuesday, March 21, 2023
  • Login
CEO North America
  • Home
  • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
    • Environment
  • Opinion
  • News
  • Multimedia
No Result
View All Result
  • Home
  • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
    • Environment
  • Opinion
  • News
  • Multimedia
No Result
View All Result
CEO North America
No Result
View All Result

Study shows that CFOs log shortest tenure in C-suite

in Business
Study shows that cfos log shortest tenure in c-suite
Share on LinkedinShare on WhatsApp

As both pressures on financial leaders rise and the need for top-tier financial leadership increases, CFOs are staying on with their companies for the shortest amount of time compared to their fellow C-suite members, a recent study by FP&A software provider DataRails found.

CFOs at the largest U.S. listed companies logged an average term of 3.51 years in the five-year period between 2016 and 2021, according to the study, which examined the complete filings of 2,056 companies during that period.

While they are logging the shortest tenures, CFOs’ overall compensation increased during that same period, the study found — CFOs’ overall compensation for 2021 averaged $3.5 million, a 40% bump in compensation from 2016, when their compensation averaged $2.6 million, according to the study.

Insight:

Turnover within the CFO position also increased between 2016 and 2021 — 56% of companies surveyed reported experiencing at least one CFO turnover during the five-year period between 2016 and 2021, while 16% experienced more than one CFO turnover.

The study also pointed to several examples of companies — such as retailer Sally Beauty — which had five CFOs take on their financial duties between 2016 and 2021. This in particular showed “the difficulty of a CFO’s role, and getting them on board and the amount of energy it takes to constantly hire and reappoint new CFOs,” Jonathan Marciano, director of communications for Datarails said in an interview.

CEOs remained in their roles an average of 3.89 years during the same five-year period, while general counsel served an average tenure of 4.5 years. Chief technology and chief marketing officers settled into their roles for the longest amount of time, serving 4.64 years and 4.63 years on average, respectively.

CFOs may be logging shorter tenures than their C-suite colleagues for a variety of reasons, Marciano said. Financial leaders, many of which faced consistent economic pressures during the pandemic, are continuing to face market headwinds, which creates more pressure on financial executives while also revealing that their skills are at a premium — especially concerning skills in keeping costs down.

“We see that specifically the skills of cost cutting are in demand,” Marciano said, in reference to a smaller sample of 87 CFO departures in 2022, taken from market announcements.

CFOs’ average compensation has steadily ticked upwards: In 2021, CFO’s overall average compensation reached $3.5 million, making them the third-highest paid executive in the C-suite behind CTOs — who averaged $3.8 million in overall compensation for the year — and CEOs, whose overall compensation hit a median of $10.4 million.

Turnover for financial leadership also reached a high point in 2021 and although there is not a full-year picture for 2022 available yet, a smaller sample based on public statements found 87 of the 2,056 companies surveyed experienced high-profile CFO swaps or departures for the year, according to the study.

October research by executive search firm Russell Reynolds predicted an uptick in CFO turnover during the year’s final quarter despite slower turnover during the first three quarters of 2022, in part due to continued market volatility as well as better succession planning on the part of businesses.

Several CFO departures and swaps have already occured during the final months of 2022. Companies including American Airlines, doughnut brand Krispy Kreme and retailers such as Newell Brands, Goodyear tires, as well as healthcare distributor Cardinal Health, have all announced changes to their financial leadership in December, bolstering predictions that CFO turnover is likely to pick up.

Courtesy CFO Dive. By Grace Noto. Articles available here.

Tags: C-SuiiteCFOsLeadership

Related Posts

When cutting costs, don’t lose sight of long-term organizational health
Business

When Cutting Costs, Don’t Lose Sight of Long-Term Organizational Health

U. S. Businesses need to be more prepared for physical risks
Business

U.S. Businesses Need to Be More Prepared for Physical Risks

Keeping track of communications when going remote
Business

Keeping Track Of Communications When Going Remote

Research: the complicated effects of pay transparency
Business

Research: The Complicated Effects of Pay Transparency

Esg outlook 2023: greater scrutiny on companies & investments
Business

ESG Outlook 2023: Greater Scrutiny on Companies & Investments

Upwork study finds 60 million americans freelancing in 2022
Business

Upwork Study Finds 60 Million Americans Freelancing in 2022

Global tech spend will slow to 4. 7% in 2023
Business

Global Tech Spend Will Slow To 4.7% In 2023

What’s hot this year in supply chain technology
Business

What’s hot this year in supply chain technology

The pros and cons of using ghost jobs in your recruiting strategy
Business

The Pros and Cons of Using Ghost Jobs in Your Recruiting Strategy

Remote work, intermittent leave make fmla compliance more challenging
Business

Remote work, intermittent leave make FMLA compliance more challenging

No Result
View All Result

Recent Posts

  • Symbotic’s CEO Rick Cohen shines a light on the consumer goods supply revolutionSymbotic Soars
  • CEO John Wynne outlines how Fortis Solution Group is disrupting the packaging industry
  • CEO Keh-Shew Lu explains how Diodes Inc is pushing the frontiers of connectivity
  • CEO NA Andrea Pirondini explains why the Prysmian Group is best-in-class at cable solutions
  • Eric Clark on how ONE NTT is driving client-led innovation

Recent Comments

    Archives

    Categories

    • Art & Culture
    • Business
    • CEO Interviews
    • CEO Life
    • Editor´s Choice
    • Entrepreneur
    • Environment
    • Food
    • Health
    • Highlights
    • Industry
    • Innovation
    • Issues
    • Management & Leadership
    • Multimedia
    • News
    • Opinion
    • PrimeZone
    • Printed Version
    • Travel
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    • CONTACT
    • GENERAL ENQUIRIES
    • ADVERTISING
    • MEDIA KIT
    • DIRECTORY
    • TERMS AND CONDITIONS

    Editorials – stuart.james@ceo-na.com

    Advertising – media@ceo-na.com

    NEW YORK

    110 Wall St.,
    3rd Floor
    New York, NY.
    10005
    USA
    +1 212 432 5800

     

    MEXICO CITY

    Paseo de la Reforma 296,
    Floor 38
    Mexico City
    06600
    MEXICO

    • CONTACT
    • GENERAL ENQUIRIES
    • ADVERTISING
    • MEDIA KIT
    • DIRECTORY
    • TERMS AND CONDITIONS

    Editorials –
    stuart.james@ceo-na.com

    Editor-In-Chief –

    caroline.sposto@ceo-na.com

    Editorials – editorials@ceo-na.com

    Advertising –
    media@ceo-na.com

    NEW YORK

    110 Wall St.,
    3rd Floor
    New York, NY.
    10005
    USA
    +1 212 432 5800

    MEXICO CITY

    Paseo de la Reforma 296,
    Floor 38
    Mexico City
    06600
    MEXICO

    CEO North America © 2022 - Sitemap

    No Result
    View All Result
    • Home
    • Business
      • Entrepreneur
      • Industry
      • Innovation
      • Management & Leadership
    • CEO Interviews
    • CEO Life
      • Art & Culture
      • Food
      • Health
      • Travel
      • Environment
    • Opinion
    • News
    • Multimedia

    © 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Warning: array_sum() expects parameter 1 to be array, null given in /home/ceonacom/public_html/wp-content/plugins/jnews-social-share/class.jnews-social-background-process.php on line 111