Understanding CFO Turnover: Research From the 404 Institute

Research from KPMG indicates that companies recruit new CFOs based on their evolving needs-a move designed to help them successfully execute on their current strategy. Accordingly, CFOs often develop one of several distinct skill sets that are typically aligned with certain corporate strategic priorities-growth, business transformation, or cost cutting, for example.

Also discussed in this report are the reasons and rate of CFO Turnover. According to the research, CFO departures occur for one of two reasons: an opportunity to move to another company, usually in a more powerful role to solve a strategic challenge; or a chance to move into a higher role at their current companies-often the COO or CEO position.

The KPMG 404 Institute also found that:

• Thirty-six percent of current Fortune 1000 CFOs have held their position less than two years, and more than half were promoted from within
• In the Fortune 250, almost 65 percent of CFOs were internal promotions
• More than 70 percent of newly appointed CFOs have not held the position in the past