133: Why are so many CFOs becoming CEOs?

There is a growing trend in the business world where CEOs have previously held the position of CFO. In this episode, Andrea discusses this trend, the research behind it, and the reasons why it may be happening. Additionally, Andrea talks about the influence of the current economic climate on the decisions of board members and the influence this may have.

KEY TAKEAWAYS

• 30% of Fortune 100 CEOs have previously served as CFOs, this trend is replicated across the corporate world.
• CFOs keep the company in a safe financial position, this is recognised highly by CEOs and the board.
• In challenging economic times, whoever is looking after ‘the numbers’ generates a lot of trust and attention.
• If a decision for a new CEO has to be made quickly, the COO and CFO are candidates that are frequently looked at first.
• CFOs have strong existing relationships with board members than many other senior roles.
• The risk-averse nature of CFOs can lend itself to periods of uncertainty like we are seeing in the economy and therefore many businesses at the moment.
• The mindset of a CFO generally lends itself to keeping the status quo, they can find it more challenging to shift to a growth mindset that may be needed for a more ambitious future for companies.

BEST MOMENTS

“This trend is clearly on the rise”

“They provide a sense of stability and control to the board”

“They have a stronger relationship, that CFOs have with the board”

“They feel more confident, in a safer place, especially when restructuring to hand over to a CFO”

“CFOs are inherently risk-averse”

 "If you really want to drive top-line revenue, choosing a CFO could be a really risky decision" 

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ABOUT THE HOST

My name is Andrea Petrone. I'm a Human Performance and Leadership Advisor, Executive Coach and International Speaker. I help leaders and their teams to change their mindsets and master their leadership capabilities so they can achieve extraordinary performance. I've been in the corporate world for more than 20 years working globally - in 6 countries and 3 continents - for medium-large companies.