January 17, 2025 – CFOs transitioning to CEOs are uniquely positioned to lead organizations with a strong foundation in financial expertise and strategic decision-making. Their deep understanding of financial health, risk management, and capital allocation allows them to make data-driven decisions that align with long-term organizational goals. CFOs often have significant experience communicating with boards, investors, and stakeholders, giving them an edge in managing external relationships. This financial acumen can be a critical asset in navigating economic uncertainty, optimizing resource allocation, and driving sustainable growth.
“There are many reasons why I love my job but prime among them is the opportunity to work with talented leaders day in, day out,” said Jean Chiswick, a key member of Spencer Stuart’s retail, consumer, financial services and PE practices, said in recent report. “Sitting down with different people from all walks of life, all committed to doing good, all determined to make a difference, is something that I’ll always treasure.”
While these discussions are often about helping organizations finding the right people for their own unique needs, Ms. Chiswick notes that the conversation often turns to how individuals can map their own different pathways and options for their future. After all, few careers progress exactly as envisaged. Plans shift, circumstances change, ideas evolve.
“A good example is the well-trodden journey between a CFO and CEO,” Ms. Chiswick said. “This is a subject that my colleagues and I have been exploring in recent months and is one that, perhaps inevitably, has sparked many different findings and perspectives.”
The move from CFO to CEO is well-established — 19 percent of ASX100 CEOs were appointed from a CFO role as an internal promotion or successor. But while CFOs often possess many of the key traits and skills necessary for a seamless switch into the CEO hot seat, Spencer Stuart has found that success is by no means guaranteed. When it comes to top-line growth, the firm’s research shows that that only eight percent of CEOs promoted from the CFO role steer their companies into the top-quartile of top- line growth.
Ms. Chiswick explains that understanding why this is the case was just one of the many talking points at a dinner she had hosted last month. Attended by guests who have worked in both the CFO and CEO roles during their careers, Spencer Stuart was able to dig into their own experiences and reflections, their lessons learned and recommendations for the next generation. So, what did the firm find out?
Strengthening a Critical Pathway
“It’s easy to see why nomination committees are often swayed by a CFO’s candidacy for a CEO role,” Ms. Chiswick said. “After all, the CFO — much like the CEO — has full oversight over a company’s functions and operations. They also understand the numbers and performance frameworks, have strong…
Read More: Forward from Finance: From CFO to CEO
