Doreen Lilienfeld Discusses CFOs Advancing to Become CEOs in StrategicCFO360

Executive turnover seems to be at all-time highs this year. Why do you think that is?

Market dynamics have changed, and the economic environment is significantly altered from several years ago. High interest rates have made it challenging for companies eager to grow through acquisitions. Complicating matters, many companies have made acquisitions in the recent past, and are still digesting those businesses. These factors put C-Suite executives under enormous pressure, and often pressure sparks turnover.   

You say you have assisted with more CFO transitions than CEO transitions this year. Why do you think that is?

Traditionally, the CFO was seen as an accounting expert, someone who was great at keeping the books and deftly handling audits and compliance. That profile has dramatically changed in the last two decades. The most sought-after CFOs can do so much more. 

Companies and boards are always mindful of CEO succession, and unlike in years past, they’re looking at their CFO as a possible and perhaps even likely successor to the CEO. Companies are eager to find CFOs with varied skill sets. They’re frequently being tapped for internal or external promotion.

How has the role of CFO evolved over the past decade?

CFOs used to be in the role of CFO forever—they dealt with audits, financing, forecasting, and managing the balance sheet. Today’s CFO needs to have many more skills—comfortable with board interactions, deeply knowledgeable about company operations and able to serve as a resource for gauging market conditions. They still must understand compliance, auditing and internal controls though now the most effective CFOs perform strategic, market-facing functions with broad remits covering investor relations and sometimes even human resources.