CXO hiring trends of 2024: Why more companies are promoting CFOs to CEOs

In the fast-paced world of corporate leadership, the role of Chief Financial Officer (CFO) has undergone a significant transformation in recent years.

No longer confined to the realms of finance, modern CFOs are increasingly becoming key drivers of strategic decision-making and operational excellence within organizations.

Brian Cabral, Executive Director – Search Practice at ABC Consultants, sheds light on why companies are increasingly promoting CFOs to CEOs and other CXO hiring trends.

From CFO to CEO: A Shifting Landscape

In the past five years, there has been a notable surge in CFOs assuming the top leadership positions in companies across various industries.

1. CFOs are now taking on more strategic responsibilities. They are transitioning into business leadership roles and eventually becoming CEOs of companies. Some CFOs are also leading countries as country managers or country heads, and then progressing to become Global COOs or MDS.
2. Traditionally, we have seen CFOs not getting the opportunity like COOs. Now the role of the COO has diminished in many organizations over the past five to six years. On the other hand, the role of the CFO has become more prominent, focusing on strategy and operations in a broad sense.
3. From an operational standpoint, I have frequently observed HR, Finance, and IT departments reporting directly to the CFO of that organization.

The Changing Dynamics of CFO Selection

Gone are the days when CFO appointments were solely based on years of experience. In today’s dynamic business environment, companies are placing greater emphasis on agility, energy, and future potential when selecting CFOs.

1. High Energy and Agility: As organizations grow rapidly, often at rates of 4x, 5x, or even 10x their previous size, they require a CFO who can keep up. This necessitates a high level of energy, agility, and adaptability in the role.
2. Younger Candidates: In Brian’s experience, candidates in their early to mid-40s often possess the traits necessary to handle today’s fast-paced business environment, bringing fresh perspectives and a nimble approach.

Investing in Personal and Professional Development

For aspiring CFOs looking to make their mark in the corporate world, a multifaceted approach to personal and professional development is essential.

Brian emphasizes the importance of investing in education and building a strong personal brand:

1. Invest in Education and Knowledge: Taking relevant courses and pursuing an MBA can enhance knowledge and contribute to better business results in organizations.
2. Build a Strong Personal Brand: Maintaining a strong brand presence, especially on social media, is crucial for aspiring CFOs. This includes demonstrating expertise through pro bono initiatives and industrial forums.
3. Networking: Hobnobbing with other CXOs and networking is essential for recognition and personal branding in today’s business world.

In summary: the evolving role of the CFO reflects broader shifts in the corporate landscape, where strategic leadership and agility are paramount. As CFOs increasingly position themselves as drivers of innovation and growth, the traditional boundaries between finance and other business functions continue to blur.

Video edited by: Lakshay Gupta and Thumbnail created by: Harmanjit Sahota