Beyond the Balance Sheet: Unleashing the Full Potential of Financial Services CFOs

The financial services industry is on the brink of significant C-suite turnover in the next 5 years, for the CFO role, turnover was 12% higher in 2025 than the average rate over the last 7-year period. In tandem, CFO retirement rates continue to increase. If organizations don’t engage in active succession planning, they risk leadership voids - for the CEO seat, and for other pivotal executive and supervisory roles.

It's clear to see how firms benefit from active succession planning for key value driving roles like CEO and CFO positions; leadership continuity is critical to protecting investor confidence, regulatory standing, and furthering the strategic agenda. In addition, individual leaders can also gain from a structured process to channel their ambitions.

Financial services has been strong in CEO succession planning, with 68% of appointments being internal (from 2020 to 2025). In 2025, from our Global CEO Turnover index, 45% of financial services CEOs have previously held the group CFO title, a rate higher than any other industry sector. Nevertheless, the most common pathway to CEO is still divisional leadership or COO.

Could CFOs be the key to closing the potential leadership gap? And for those not destined for the CEO seat: how can firms tap into the legacy and impact these leaders are capable of delivering?

To better understand the evolution of the CFO role in financial services, and how firms can encourage career optionality for high-performing CFOs, RRA interviewed 11 leading current and former CFOs. Several of these executives have transitioned to CEO, board, and other advisory roles within financial services.

From steward to strategist: The evolving role of the financial services CFO

The financial services CFO role has evolved from “guardian of financial discipline” to strategic and operational navigator of complexity. Once defined by stewardship and control, today’s financial services CFO is expected to shape strategy, guide transformation, and act as a trusted counterweight to the CEO.

The financial crisis of 2008 and subsequent regulatory tightening elevated the function’s importance, embedding CFOs deeply into the fabric of business decision-making. But in an environment now defined by digital disruption, shifting regulation, and investor scrutiny, technical excellence alone is no longer enough.

CFOs across sectors blend quantitative depth with relational agility; these capabilities are sharpened in financial services. Mastery of complex balance sheets, sustained engagement with regulators, and direct exposure to structured and interconnected financial products that underpin the global economy give financial services CFOs a distinctive enterprise-wide perspective. As a result, financial services CFOs develop a rare combination of analytical authority, external credibility, and strategic judgment. These differentiating competencies position them exceptionally well for roles beyond the CFO seat - whether as CEO, board director, or in broader enterprise leadership positions - often more so than in any other industry.

Differentiating competencies of financial services CFOs

Given the unique environment that financial services CFOs operate in, the competencies they’ve developed have positioned them for broader strategic roles.

These skillsets include:

• Regulatory strategist: financial services has a high regulatory burden compared to other sectors, and the global scope of many diversified firms in this industry require CFOs to skilfully navigate the regulatory demands of several agencies – from the SEC, PRA, ECB or FINRA – each with competing standards and protocols. In tandem, finance leaders must balance those demands against commercial, operational, and strategic requirements.
  
  
• Strategic communicator of financial complexity: in financial services the "product" is often a complex and intangible financial instrument—such as derivatives, insurance contracts, or structured credit. Therefore, financial services CFOs must communicate a deeply complex financial story; showing how the financial components of their services enable business growth, translating complex financials into strategic narratives that drive the business forward—not just reporting numbers.
  
  
• Influencer of financially perceptive stakeholders: stakeholder influence is essential for all CFOs, but financial services CFOs face a particularly financially astute audience compared with finance leadership in other sectors. Earning credibility with this group of stakeholders requires financial services CFOs to sharpen their influencing skills through frequent engagement with regulators, boards, and investors in a highly governed environment.
  
  
• Enterprise and commercial value creator: CFOs across industries are undeniable value creators. In financial services, this competency is flexed in a unique way; financial services CFOs operate in a sector where value is derived from abstract constructs—trust, capital efficiency, navigating capital markets, client risk profiles, and product structuring. To bring value, CFOs here require a deep grasp of each financial institution’s business mechanics in conjunction with a high degree of financial literacy and systems thinking. This elevated financial fluency positions financial services CFOs as both strategic partners and enterprise architects - where best in class leaders focus on long term strategy as a true partner to the CEO.

• Transformation architect: as AI becomes central to finance value creation, financial services CFOs are expected to lead technology-enabled efficiency and productivity gains—but with a distinctly higher bar for risk, resilience, and trust. Unlike many sectors, financial services leaders must balance innovation with stringent regulatory requirements, model governance, and operational controls. The stakes are also uniquely personal: a data breach can mean direct access to customers’ money, making security, privacy, and reliability non-negotiable. And because many financial services firms are already at the forefront of AI adoption, expectations are high—CFOs must deliver transformation at pace while protecting consumer confidence and the trust customers place in their institutions.

These differentiating competencies reveal both the depth and the breadth of the financial services CFO’s influence—and the opportunity for them to step into roles of even greater enterprise impact.

Second acts: where are CFOs going next?

For many financial services CFOs, the natural ‘second act’ is to pursue broader enterprise leadership. Our data show that CFOs are among the most frequent functional leaders to transition into the CEO role in financial services: 45% of financial services CEOs have previous CFO experience, a rate significantly higher than other sectors. (Figure 1).

Figure 1. Percentage of CEO Appointments with CFO Experience by Sector

_{Source: Russell Reynolds Associates, Global CEO Turnover Index, 2025}

While 45% of financial services CEOs appointed in 2025 have previous CFO experience, the most common immediate role prior to the CEO role remains the division or regional head role (31%), not CFO. This suggests that while many CFOs aspire for the CEO role, they must often take an intermediary role to get there.

The ambition exists — our Global Leadership Monitor finds that nearly four in five financial services CFOs say they want more responsibility, and more than a third aspire to become CEO — but fewer than half can envision how to get there.

CFOs are uniquely positioned for CEO success in financial services, but the transition requires deliberate preparation. The modern financial services CFO already operates as a strategic partner to the CEO, balancing commercial insight, financial discipline, and credibility with regulators and investors. This breadth provides a strong foundation for enterprise leadership.

However, CFOs who successfully make the leap tend to have built relationships across the business, gained P&L exposure, and mastered the art of storytelling — translating numbers into narrative that inspires confidence. In a sector where complexity dominates, the ability to connect strategic, financial, and people dimensions is what ultimately distinguishes CEO-ready CFOs.

Beyond the CEO role, in our analysis of outgoing CFOs, we often see CFOs pivoting laterally into broader operational roles — such as COO, divisional CEO, or another role holding P&L responsibility— to gain scope and apply their strategic experience in new contexts, often still striving for the CEO position as alluded to earlier.

For others, the “second act” takes a different form — but remains equally influential. More than a third of outgoing financial services CFOs move into board roles exclusively, leveraging their governance and risk expertise as audit chairs or non-executive directors, particularly in regulated sectors or private equity.

The most successful CFOs approach their careers not as a linear climb but as a “career web” — consciously broadening their experience base, building technology and operational fluency, and cultivating relationships across the firm to keep multiple future options open.

Charting the next chapter: practical steps for CFOs and leadership teams

For many executives, the CFO role is both a destination in its own right and a platform for broader strategic leadership opportunities. Yet many CFOs still choose to move on—often drawn by a wealth of attractive options beyond their current organization. Much of the succession challenge is understanding what motivates financial officers to leave their organizations; or, conversely, to stay. Our research shows that career advancement and a desire for a different type of leadership drives CFOs away, while alignment with company culture and clear encouragement and appreciation keep them in seat. (Figure 2.)

Figure 2a. Top reasons CFOs cite to leave an organization | Figure 2b. Top reasons CFOs cite to stay in an organization

_{Source: Russell Reynolds Associates, Global Leadership Monitor, 2025, N= 39 CFOs}

To ensure CFOs in financial services can successfully transition to their next chapter—whether as CEO, board director, or another C-suite leader—both individual initiative and organizational support are essential. The following actions, when taken together, help maximize leadership continuity, talent retention, and the long-term success of both the individual and the organization:

CFOs bring immense value to their organizations and can continue to contribute beyond the CFO role. By combining proactive career management with robust organizational support, CFOs are empowered to realize their ambitions, and organizations are better positioned to retain top talent and ensure leadership continuity.

Authors

Bradlee Benn is a senior member of Russell Reynolds Associates’ Financial Officers practice. He is based in New York.
Tal Friedler is a member of Russell Reynolds Associates’ Financial Services Commercial Strategy & Insights team. She is based in London.
Jamie Lewis is a senior member of Russell Reynolds Associates’ Financial Officers practice. He is based in London.
Catherine Schroder leads Russell Reynolds Associates’ Financial Officers Commercial Strategy & Insights team. She is based in Toronto.

Our insights would not be possible without the generous time and input from our esteemed participants.

Clare Bousfield
Former CFO M&G plc and Aegon UK, and former CEO M&G plc Retail & Savings and Prudential UK
Board Positions: Bupa UK (Chair), Legal & General, Recipharm, IVC Evidensia

Jeff Campbell
Former CFO, American Express, McKesson and American Airlines
Board Positions: Marathon Petroleum, Aon, Hexcel Corporation

Michael Cefole
CEO, YMCA Retirement Fund
Former CFO, YMCA Retirement Fund, Guardian Life

Brian D Doubles
CEO, Synchrony Financial
Former President, Synchrony Financial and former CFO, Synchrony Financial

David B Edelson
Managing Director, Bain Capital
Former CFO, Loews Corporation
Board Positions: AutoNation

Charlotte Jones
Group CFO, Aviva
Former CFO, RSA and Jupiter Asset Management

James Lenton
Group CFO, Bupa
Former Group CFO, Hammerson PLC

Jennifer McPeek
Principle Owner, Align Advisory
Former CFO, Russell Investments and Janus Henderson
Board Positions: Cboe Global Markets, Cushman & Wakefield, First American Funds

Tushar Morzaria
Former CFO, Barclays, JP Morgan (Corporate & Investment Banking)
Board Positions: BT Group PLC, Legal & General, BP PLC

Richard Oldfield
Group CEO, Schroders
Former CFO, Schroders
Board Positions: Duke of Edinburgh's International Award Foundation

Jason Tyler
President, Wealth Management, Northern Trust
Former CFO, Northern Trust