"You need to own your own transition.”Chris Kreidler
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But where do outgoing CFOs begin?
Russell Reynolds Associates interviewed nine former public company CFOs to provide advice on:
Modern CFOs have broad skillsets. In addition to their strong financial skills, they are strategic, focused on talent and of course board literate. Below are the most common opportunities we see outgoing CFOs pursuing and the learnings from these moves.
RRA’s CFO Turnover Index shows that 34% of outgoing transitioning CFOs in 2024 took a CEO or President role, up from 20% in 2023.2 The most notable examples of this transition include the CEOs of HSBC, BP, Principal Financial, Campbell’s Co and British American Tobacco.
Despite this aptitude, interviews with former CEOs highlight that many CFOs struggle with visibility and the softer skills necessary to inspire and engage a broad range of stakeholders.
Geraldine Matchett, current board member at Nestlé, ABB and Swiss Re and former CFO and co-CEO at DSM, noted that “CFOs are often seen as the cold voice of data. Becoming an effective storyteller and charismatic leader often requires deliberate effort and training”.
To bridge these gaps and prepare for a successful transition into the CEO role, CFOs must:
Our interviews revealed that CFOs are uniquely positioned for board roles, such as chair, audit committee chair/member, or qualified financial expert (QFE). Their experience in managing complex financial landscapes, risk assessment, and compliance makes them invaluable, especially as an audit committee member or QFE.
Renato Fassbind
Current board member at Nestlé and former CFO of Credit Suisse and ABB
Aspiring board members are encouraged to view board mandates as a long-term goal—one that may take time to secure—rather than a quick transition. To set themselves up for success, they should:
Peter Wuffli
Current board member at Sygnum Bank and former CFO & CEO of UBS
The operating partner role at private capital firms has gained popularity in recent years amongst former CFOs. The operating partner acts as a specialist who the private capital deal/portfolio operations team can draw upon for functional expertise. They are advising on best practice and structure for finance teams, developing a community and network for portfolio CFOs, and are tasked with mentoring and developing portfolio finance talent.
CFOs who are steeped in value creation, lead through influence, and are relationship experts are well suited to this dynamic role, where you have the flexibility to define the role and the value you add.
To bridge the gap between the CFO and operating partner remit, CFOs should:
David Edelson
Operating Partner, Bain Capital; Current board member at AutoNation and former CFO of Loews
To transition successfully from CFO to CEO/General Management, board, or operating partner roles requires more than just deep financial expertise. While still in seat, CFOs need to:
Get the right experience
Build the right network
Embrace mentorship (it’s a secret weapon)
Once you’ve determined what’s next, factors like timing, role availability, and personal considerations all contribute to how one should communicate a planned transition to the CEO and board.
Create the right dialogueAfter a few years into role as CFO at Sysco, Chris Kreidler’s CEO and board sat him down and inquired about what he was looking to do next. While many people’s instincts might be to keep this information close to their chests, Chris reiterated that being transparent in this conversation significantly benefitted his eventual transition. While some CEOs and boards might proactively inquire about your career plans, this is by no means the rule. Continually communicating your career goals, and estimated transition timelines will enable you and your organization to develop a succession plan and help you to appropriately scope possible next opportunities, sometimes the best network for your next role are those in your own organization and on your Board. |
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Consider timingThe timing has to be right for your transition. Ensure that there is a succession plan in place, while also keeping an eye on the market for your next role’s availability. For example, while you might have your eye on the CEO role as a next step, building a candid relationship with the CEO so you know their succession timeline can factor into the your timeline. Thomas Aebischer, current board member of Solvay, Sika and Dormakaba and former CFO of LyondellBasell & Lafarge Holcim, discussed his transition to Audit Committee Chair. “The transition wasn’t easy, people aren’t waiting around with opportunities and the timing has to be right. It took 1.5 years before I got onto my first board.” |
1 Is the CFO the Right Next CEO? | Russell Reynolds Associates
2 Global CFO Turnover Index | Russell Reynolds Associates
Jenna Fisher co-leads Russell Reynolds Associates’ Financial Officers practice globally. She is based in Palo Alto.
Jasmine Jenny is a senior member of the Russell Reynolds Associates’ Financial Officers practice. She is based in Zurich.
Mohammed Khan is a member of the Russell Reynolds Associates’ Financial Officers Knowledge team. He is based in London.
Jim Lawson co-leads Russell Reynolds Associates’ Financial Officers practice globally. He is based in New York.
Catherine Schroeder leads Russell Reynolds Associates’ Financial Officers Knowledge team. She is based in Toronto.
Emily Taylor co-leads Russell Reynolds Associates’ Private Capital practice globally. She is based in New York.
Thomas Aebischer
Former CFO, LyondellBasell and Lafarge Holcim
Board/Audit Committee Roles Held; Quotient, Dormakaba Holding, Solvay and Sika
David Edelson
Operating Partner, Bain Capital
Former CFO, Loews
Board/Audit Committee Roles Held: AutoNation
Renato Fassbind
Former CFO, ABB and Credit Suisse
Board/Audit Committee Roles Held; HSBC, Swiss Re, Kuehne + Nagel and Nestlé
Ed Fitzpatrick
Strategic Advisor, Genpact
Former CFO, Motorola and Genpact
Board/Audit Committee Roles Held: CBOE Global Markets
Chris Kreidler
Senior Adviser, McKinsey & Co.
Former CFO Sysco
Board Roles Held: TrueBlue, Alyasra Foods, Soul Foods
Geraldine Matchett
Former CFO & Co-CEO, Koninklijke DSM and Former CFO of SGS SA
Board/Audit Committee Roles Held; ABB, Nestlé and Swiss Re
Thomas Müller
Former CFO, Swiss Life and Former CEO, BSI
Board/Audit Committee Roles Held; Twelve Capital, Credit Exchange and Raiffeisen Switzerland
Jörg Riboni
Former CFO, Emmi Gruppe
Board/Audit Committee Roles Held; Erni, Arytza, Heritage B, Hochdorf Holding, Rothorn Group, Glas Trosch and SoftwareOne
Peter Wuffli
Former CFO & CEO, UBS
Board/Audit Committee Roles Held; Elea Foundation, Partners Group, IMD, Zurich Opera and Sygnum Bank