Fewer CFOs, Higher Stakes: How Consumer Organizations Can Mitigate Succession Risks

In 2025, consumer organizations faced extended uncertainty, navigating compounding disruptions, including shifting consumer behavior, AI-driven transformation, supply chain pressures, and evolving trade policy. Publicly-listed consumer organizations responded by reaching for experienced CFOs. Per RRA’s Global CFO Turnover Index, more than 60% of incoming consumer CFOs had prior CFO experience, nearly double the 33% recorded in 2024 and well above the 43% average across industries (Figure 1).

Figure 1: CFO appointment experience by industry

_{Source: Russell Reynolds Associates’ CFO Turnover Index, n = 46 consumer CFOs in 2024, 287 CFOs across all industries, 58 consumer CFOs in 2025, 316 CFOs across all industries}

But as that demand grew, the available talent pool shrank.

In 2025, across all industries, 60% of outgoing CFOs globally (and 57% of consumer CFOs) retired or moved into advisory or board roles, and only 13% moved into another CFO position (Figure 2). The remainder moved into broader executive roles including CEO, COO, and division president positions. Compounding the challenge, global CFO turnover among publicly listed consumer organizations¹ reached 18% in 2025, consistent across regions.

Figure 2: Outgoing CFOs’ next role by industry

_{Source: Russell Reynolds Associates’ Global CFO Turnover Index, n = 54 outgoing consumer CFOs, 270 outgoing CFOs all industries.}

As the CFO role grows more demanding—requiring greater agility, more scenario planning, and sustained investor scrutiny—consumer organizations are forced to pay a premium when competing for this shrinking talent pool.

Additionally, increased CEO turnover adds further pressure on an already constrained market. Consumer CEO turnover reached a seven-year high of 17% in 2025; 78% of incoming CEOs were first-timers. CEO transitions can be natural inflection points at which organizations reassess their senior leadership team, and the CFO role is no exception. When a first-time CEO steps in, organizations increasingly look to anchor that transition with an experienced CFO; someone who can provide strategic counsel to a new leader and establish credibility with the market and investors.

The solution is not just casting a wider external net by remaining open to high-potential first-time CFOs. The consumer organizations best positioned to navigate this market are those that build their internal talent pipeline through stronger succession planning.

Yet even the most proactive plans can break down in the face of market realities. We explore the four issues that most commonly stunt succession plans and what consumer organizations can do to get ahead.

“With a large number of incoming first-time CEOs, demand for experienced CFOs rose sharply, and without a strong internal bench, many companies were forced to look externally for this talent.”

Kristi Maynor
Russell Reynolds Associates

Where CFO succession planning breaks down

Through our work with consumer leaders, we identified four areas where CFO succession planning most commonly breaks down.

It starts too late

When organizations begin succession planning only when a transition is imminent, they often find themselves with less runway than the process requires. In consumer organizations, that runway is getting shorter. With an average CFO tenure of 6.1 years in consumer organizations, and development often taking up to 5 years, best practice is to start CFO succession planning when a new CFO is appointed. By the time a departure occurs, there is not enough time to properly prepare an internal successor.

It’s easy to underestimate the ripple effect that starting late creates. Without early and visible investment in their development, high-potential finance leaders are left without clarity on their career path and are more likely to disengage or leave the organization. The result is an organization without internal options, competing for external talent in a market that is more expensive and more competitive than most organizations expect.

“When succession planning starts too late, the runway is already gone. Organizations are left without ready successors and forced into a costly, competitive external search.”

Romain Clio
Russell Reynolds Associates

Succession efforts don’t go deep enough

When organizations rely on one or two internal candidates for CFO succession, the pipeline becomes fragile. If those individuals are not ready, move on, or are not the right fit when the seat becomes available, options diminish quickly. In 2025, 33% of consumer CFO appointments came from within the organization, compared to 54% across all industries. This suggests that, in most cases, succession plans were either not in place or did not come to fruition.

Building a more resilient pipeline requires thinking differently about who gets senior finance roles and how they are developed once there. Candidates who have not built broad experience across both corporate finance functions and business unit leadership roles may lack the commercial and technical range the CFO role now requires. As AI adoption, transformation agendas, and shifting business conditions continue to reshape organizations, the success profile for the CFO role is evolving too. Organizations that define that future profile deliberately and develop a portfolio of candidates across different readiness horizons will have more meaningful choices when a transition comes. And where internal bench strength does not fully align with that future profile, a strategic external hire at the CFO-1 level two to three years before an anticipated succession can bridge the gap, bringing in the right capabilities while still allowing time to assess fit and readiness before the seat opens.

“A thoughtful development plan anchored in cross-functional and cross-business rotations equips executives with the exposure and building blocks needed to step confidently into the broader CFO role. Without a clearly defined path for expanded scope and mobility, growth can feel constrained, often prompting executives to look outside the organization for that progression.”

Callie Bennett
Russell Reynolds Associates

No single person owns CFO succession

When CFO succession planning is left without a clear owner, it tends to stay informal and fragmented. The incumbent CFO, CEO, and CHRO each play a role, but the process often lacks accountability. Development conversations that need to happen directly and intentionally are instead avoided or delayed, and succession planning remains reactive rather than deliberate.

Lack of ownership and accountability often means that internal candidates rarely get the board exposure the CFO role requires. When no one is actively creating those opportunities, high-potential finance leaders go unseen by the board. Our Board Cultures and Director survey found that only about half of consumer board directors are consistently building relationships with executives beyond the CEO, yet we’ve found that boards are becoming increasingly interested in CFO succession, with a keen desire for visibility into the process. Without deliberate effort to increase board exposure, even capable internal candidates can appear untested when the CFO seat becomes available.

“CFO succession efforts tend to be on everyone’s agenda, but no one’s priority. Without clear ownership, CFO succession drifts, leaving the organization under prepared for unexpected succession needs.”

Clare Metcalf
Russell Reynolds Associates

Organizations underestimate the attractiveness of their bench

Organizations that invest in developing strong finance talent can inadvertently create their own retention challenge. The better the development, the more visible and attractive those leaders become to competitors. What feels like a stable bench internally can look very appealing from the outside, and organizations are often caught off guard when a key succession candidate fields an offer or decides to move on.

When succession plans depend on too few people, the pipeline can collapse quickly if those individuals leave or are not ready. Maintaining an external market map helps mitigate that exposure: it provides a clear view of the external talent landscape, allows organizations to benchmark internal candidates against the broader market, and ensures that if the internal pipeline falls short, organizations are positioned to move quickly and with confidence.

Retaining strong bench talent requires the same intentionality with which it was developed. Structured development, executive coaching, mentoring, and clear career pathways for strong internal talent signal that the organization is committed to their future. That commitment can be as important as financial retention incentives in keeping the right people engaged and in place.

“High quality CFO-1 talent is in demand, with many considering group CFO roles alongside CFO-1 roles with a clear path to succession. If organizations don’t actively work to retain strong talent, through deliberate development and rotational opportunities, they risk losing their bench.”

Georgie Deane
Russell Reynolds Associates

Authors

Romain Clio is a member of Russell Reynolds Associates’ Financial Officers, Consumer, and Board & CEO Advisory practices. He is based in Brussels.
Kristi Maynor is a member of Russell Reynolds Associates’ Financial Officers, Consumer, and Board & CEO Advisory practices. She is based in Dallas.
Clare Metcalf is a member of Russell Reynolds Associates’ Financial Officers, Consumer, and Board & CEO Advisory practices. She is based in Chicago.
Georgie Deane is a member of Russell Reynolds Associates’ Financial Officers, Consumer, and Board & CEO Advisory practices. She is based in London. 
Callie Bennett is a member of Russell Reynolds Associates’ Financial Officers, Consumer, and Board & CEO Advisory practices. She is based in San Francisco.
Alex Madronal is a member of Russell Reynolds Associates’ Consumer Commercial Strategy and Insights team. He is based in Boston.
Kate Heikkinen is a member of Russell Reynolds Associates’ Consumer Commercial Strategy and Insights team. She is based in Boston.

Footnotes

_{¹ Indices tracked include S&P 500, FTSE 100, ASX 200, CAC 40, DAX 40, EuroNext 100, FTSE 250, HANG SENG, Nikkei 225, NSE Nifty 50, S&P/TSX Composite, STI, SMI}