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Corporate Finance, Performance Article, CFO succession  CEO
Article at a glance:

When should CFOs take the helm?

  • CFOs are increasingly involved in long-term strategic planning and in communicating with the financial markets. Does that experience prepare a CFO to serve as chief executive?
  • The answer depends a great deal on circumstances, according to the results of a recent series of interviews.
  • In some cases, CFOs are an ideal choice—particularly when financial discipline will be essential to running a company.
  • But when a company is in growth mode, CFOs need a broader background to bolster their credentials for the top spot.
This article contains the following exhibits:
  • Exhibit 1: CFOs are perceived as good candidates for the CEO role when financial issues are core to strategy.
  • Exhibit 2: CFOs are seldom promoted to CEO directly from finance within their own organization.
  • Exhibit 3: Experience in more than one role and more than one company broadens a CFO’s appeal as a CEO candidate.

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