Global CFO turnover reached its highest level in three years during the first half of 2024, with 163 new CFOs appointed globally, reflecting an 8.9% turnover rate. This increase highlights a shift in organizational strategies, as economic uncertainty becomes a constant factor, leading companies to replace CFOs more readily. The healthcare and tech industries saw the most significant turnover, with 14.2% and 11.4%, respectively. Factors contributing to this surge include increased retirement rates, CEO turnover, and lower market performance. Additionally, the average tenure of outgoing CFOs has dropped to a five-year low of 5.7 years, with many choosing retirement or board roles over continuing in the CFO position.
The first half of 2024 also saw progress in gender diversity, particularly in the tech industry, where 38% of incoming CFOs were women—the highest proportion since 2021. However, women remain underrepresented, with only 44 women appointed as CFOs out of 163 in H1 2024. To build on this progress, companies are encouraged to develop robust internal pipelines and structured sponsorship programs targeting underrepresented groups. Internal appointments remain prevalent, especially in indices like the Nikkei 225 and Hang Seng, while external appointments increasingly favor experienced CFOs as organizations navigate complex economic landscapes.
