Accessability Links
Cookies on our website
By continuing to use this website we will assume you are happy to receive cookies as outlined in our cookie policy
Accept Policy

Economic uncertainty is 'one factor driving CFO to CEO promotions'

Dec 15
Share this story:
Economic uncertainty is 'one factor driving CFO to CEO...

Several factors, including economic uncertainty and a willingness to leave an employer, are driving promotions of chief financial officers (CFOs) to chief executive officers (CEOs), according to a new study.

The survey from the BearingPoint Institute analysed the career paths of 178 CFOs from European Fortune Global 500 companies between 2004 and 2013. This information was then compared to the performance of the STOXX Europe 600.

A quarter (26 per cent) of respondents climbed to the top of the ladder during the last ten years, with 61 per cent of those promoted to CEO leaving their original firm to further their careers and 33 per cent changing sector.

It also revealed that CFOs were more likely to rise to CEO during periods of economic uncertainty, such as the economic crash in 2008. BearingPoint also discovered that some industry sectors were more appreciative of a financial background than others.

Almost a quarter (22 per cent) of those that had climbed the ladder to the top had made the transition within the banking and capital markets sector, but the study revealed that this industry was open to promoting CFOs from other fields to the position of CEO.

Franz Hiller, partner and service line leader for finance, risk and compliance at BearingPoint, said sector knowledge is still important when it comes to making the transition to the top, with two-thirds (67 per cent) of respondents being promoted within their own industries.

The overall promotion rate of 26 per cent was higher than expected, according to Mr Hiller, but interviews with CFOs offered a reasonable explanation.

He said: "Historically, CFOs in Europe were often overlooked for the top job because of their largely operational role description. But changes in the internal and external business environment have raised the profile of the function.

"By setting up their finance departments to add strategic value to the organisation, the role of CFO has been transformed to become a true business partner and co-pilot of the enterprise. It is only natural that they have therefore become much more likely candidates for the CEO position along the way," Mr Hiller concluded.

Search Mindbench.com for the latest management consultancy jobs and consulting recruitment opportunities or contact us on +44(0)207 089 9017.

Share this story:
Add new comment
Jobs Related to this Post
5 result(s) found 
Page 1 of 1 

£40k-£50k plus excellent bon...
Central London
Customer Success Manager - Growing Tech Firm, Central London - Central London£40k-£50k plus excellent bonus and benefitsOur client are a technology start-up based in Camden which use a SaaS platform
Competitive for the best graduates wit...
Central London, limited travel require...
Analysts for Procurement Specialist Consulting Firm - Central London with only 15% travel requiredExceptional to hire the best experienced graduatesLondon based Management Consultancy – Analyst Our
£50k-£100k plus bonus, benef...
Central London
Energy / Commodities - Business Development and Sales for Leading European Research Company - Central London£50k - £75k base plus excellent bonus, benefitsOur client is one of Europe’s leading
£50k-£100k tax free plus exc...
Middle East (Dubai) and North Africa l...
Strategy Consultants - Healthcare and Pharma Sector for Dubai and North Africa - We have roles in Dubai, Algeria, Tunisia and Morocco£50k-£100k tax free plus bonus, excellent benefits such as housing
€50k - €120k plus bonus, benefits
Germany, multiple locations
Our client is growing globally and particularly in the German market where they have over 40 consultants focussing on operational improvement, supply chain and digital