The Global Industrial CFO Turnover Report

With industrial CFO retirements at a five-year high and tenures shrinking, companies face a growing talent challenge. As external hires rise, and experienced CFOs become scarcer, proactive succession planning is critical to maintaining financial leadership stability.

With industrial organizations focusing on sustainable margins, innovation, and restructuring amidst a challenging market, experienced financial leaders are in increasingly short supply. Since 2019, 67% of industrial organizations have changed their CFOs, presenting a significant talent risk for those aiming to retain or develop their leadership in an increasingly competitive market.

To summarize the latest CFO turnover trends and gain insight into this market, Russell Reynolds Associates analyzed the profiles of CFOs in organizations within the industrial and natural resources sector from 2019 to 2024 (N=731). Key findings include:

1. Experienced CFOs are in demand as first-time appointments decline. In 2024, 54% of new CFOs were first-time appointees, down from 67% in 2019. As uncertainty increases, companies are opting for more seasoned leaders, tightening the talent market for seasoned CFO candidates.
   
   
2. External appointments are on the rise. In 2024, 49% of CFO appointments in the industrial sector were external, indicating a shift toward sourcing leadership beyond internal pipelines.
   
   
3. Women CFOs’ representation is slowly improving. Women now account for 18% of industrial CFO appointments in 2024. While this reflects progress, the sector continues to lag behind others in terms of the representation of women leaders.
   
   
4. More CFOs are opting for retirement or board roles. The retirement rate for industrial CFOs has hit a five-year high, with 57% opting to leave for retirement or non-executive roles in 2024—a 7-percentage-point increase from 2023 and almost double the 29% recorded in 2019.
   
   
5. Industrial CFO tenure is shortening. The average tenure of industrial CFOs has fallen to 4.8 years in 2024, down from 7.1 years in 2019, reflecting a broader trend across sectors.

Industrial CFO turnover has declined slightly, but remains relatively stable year over year compared to other sectors

In 2024, industrial CFO turnover fell to 16%. This is just 2% below the 2023 peak (Figure 1) and slightly above the 15% cross-sector average. However, compared to specific sectors, industrial CFO turnover has remained relatively stable, whereas healthcare and technology saw higher turnover rates in 2024, at 22% and 18%, respectively (Figure 2).

Despite this slight decline, industrial CFO turnover has remained elevated over the past three years compared to the preceding period. Ongoing macroeconomic uncertainty and shifting business needs may be prompting companies to reassess their CFO leadership to ensure alignment with evolving strategies.

Figure 1: Industrial CFO turnover trends: 2019 – 2024

_{Source: RRA analysis of industrial organizations in the S&P500, FTSE 100, FTSE 250, ASX 200, CAC 40, DAX 40, EuroNext 100, Hang Seng, Nikkei 225, NSE Nifty 50, S&P/TSX Composite and STI from 2019 to 2024 (n=731).}

Figure 2: CFO turnover trends across sectors: 2019 – 2024

_{Source: RRA analysis of organizations in the S&P500, FTSE 100, FTSE 250, ASX 200, CAC 40, DAX 40, EuroNext 100, Hang Seng, Nikkei 225, NSE Nifty 50, S&P/TSX Composite and STI from 2019 to 2024 (n=1822).}

Experienced CFOs in demand as first-time appointments decline

Industrial companies are increasingly favoring experienced CFOs, with only 54% of industrial CFOs in 2024 being first-time appointees—down from 67% in 2019. This trend aligns with the broader cross-sector trend, where first-time CFO appointments fell from a 66% peak in 2022 (up 2-percentage points from the 2019-2021 average), to 60% in 2024 (Figure 3).

Despite the need to strengthen internal succession pipelines, industrial firms are increasingly prioritizing proven leadership. As organizations face increasing uncertainty, there are indications that boards are showing a preference for seasoned executives.

Figure 3: First-time industrial CFO appointments: 2019 – 2024

_{Source: RRA analysis of industrial organizations in the S&P500, FTSE 100, FTSE 250, ASX 200, CAC 40, DAX 40, EuroNext 100, Hang Seng, Nikkei 225, NSE Nifty 50, S&P/TSX Composite and STI from 2019 to 2024 (n=731).}

External appointments are on the rise, but fit remains key

While internal appointments offer familiarity with the business and support effective succession planning, their proportion is decreasing—down from 59% of appointments in 2019 to 51% in 2024 (Figure 4).

Industrial companies are increasingly turning to external hires for CFO roles, with 49% of appointments in 2024 being external, slightly surpassing the cross-sector average of 47%. Among these external appointments, 73% had prior CFO experience (compared to 19% of internal appointees). External hires bring valuable, diverse experience and could strengthen leadership teams by offering a broader strategic or operational perspective beyond the company's core focus.

However, as the external CFO talent pool tightens, industrial organizations may need to consider first-time CFO candidates more carefully. A thorough assessment and development process for these candidates can help provide the confidence industrial companies need to take a chance on first-time talent, ensuring that the right leadership skills are in place for the role. This approach could allow companies to confidently promote internal candidates, maintaining leadership continuity while meeting the evolving demands of the role.

Figure 4: Internal vs external industrial CFO appointments: 2019 - 2024

_{Source: RRA analysis of industrial organizations in the S&P500, FTSE 100, FTSE 250, ASX 200, CAC 40, DAX 40, EuroNext 100, Hang Seng, Nikkei 225, NSE Nifty 50, S&P/TSX Composite and STI from 2019 to 2024 (n=731).}

Women CFOs’ representation is slowly improving in the industrial space

Women are rarely found in the top financial officer position. While women CFO appointments in the industrial sector have risen steadily since 2019—reaching 18% in 2024—this marks a slight decline from 19% in 2023 and 21% in 2022 (Figure 5). The industrial sector also continues to lag behind the 25% cross-sector average, which hit a five-year high in 2024 (Figure 5).

One factor influencing this gap is the preference for CFOs with prior experience—historically, women have been underrepresented in these roles. In 2024, just 28% of appointed women industrial CFOs had prior CFO experience.

Across all sectors in the S&P 500, women hold 19% of CFO roles, meaning the index is approximately 42 years away from achieving gender parity. Despite this, the demand for more diverse pipelines at senior levels is rising.

As the push for greater inclusivity in leadership roles continues to grow, organizations are focusing more on sourcing a diverse range of qualified talent with proven expertise, signaling positive steps toward closing the gender gap in financial leadership and improving women’s representation at the top. Internal succession strategies—for example, taking an “opt-in” vs “opt-out” approach—are proven ways to enable inclusiveness in future leadership pipelines.

Figure 5: Proportion of women industrial CFO appointments vs women CFO appointments across sectors: 2019 – 2024

_{Source: RRA analysis of organizations in the S&P500, FTSE 100, FTSE 250, ASX 200, CAC 40, DAX 40, EuroNext 100, Hang Seng, Nikkei 225, NSE Nifty 50, S&P/TSX Composite and STI from 2019 to 2024 (n=731 for industrial and n=1822 across all sectors).}

More CFOs are opting for retirement or board roles

Industrial CFO retirement rates reached a five-year high of 57% in 2024, with more CFOs choosing to retire or transition into non-executive board roles, rather than continuing in another executive position (Figure 6). This rate exceeds the average across all sectors, which stands at 54%. The trend may be driven by personal and financial factors, as well as the increasing focus on succession planning and C-suite renewal, amplified by higher turnover rates.

On the flip side, former CFOs bring valuable financial expertise and C-suite experience to boards, making them attractive candidates, particularly in audit, remuneration, or investment committees. Despite many CFOs stepping away from executive roles, demand for experienced financial leaders remains high. Of the 43% who stay in executive roles, 39% remain CFOs, while others transition into top leadership positions such as CEO or President.

Figure 6: Industrial CFOs exiting into retirement/boards or new roles: 2019 – 2024

_{Source: RRA analysis of industrial organizations in the S&P500, FTSE 100, FTSE 250, ASX 200, CAC 40, DAX 40, EuroNext 100, Hang Seng, Nikkei 225, NSE Nifty 50, S&P/TSX Composite and STI from 2019 to 2024 (n=731).}

Industrial CFO tenure is shortening

In 2024, the average tenure of outgoing industrial CFOs dropped to 4.8 years —a two-year decline from 2023—making it the shortest average among all sectors. In comparison, the average tenure of CFOs across all sectors was 5.9 years. (Figure 7)

This shift reflects a broader trend in a volatile macroeconomic landscape where business cycles are shortening, and the CFO role is becoming increasingly complex. Beyond traditional financial oversight, CFOs are now expected to drive strategic planning, execute corporate initiatives, and play a critical role in C-suite and board succession planning.

Mounting pressures may also be accelerating CFO exits. Others are transitioning into non-executive board roles, where their financial expertise remains in high demand. Meanwhile, the competition for experienced CFOs continues to tighten, adding to the talent challenges for industrial companies.

Figure 7: Average CFO tenures across sectors: 2019 – 2024

_{Source: RRA analysis of industrial organizations in the S&P500, FTSE 100, FTSE 250, ASX 200, CAC 40, DAX 40, EuroNext 100, Hang Seng, Nikkei 225, NSE Nifty 50, S&P/TSX Composite and STI from 2019 to 2024 (n=1822).}

Despite the importance of succession planning, industrial leaders lack confidence in their organizations’ approach

While succession planning is an effective tool in addressing elevated CFO turnover, industrial organizations must be cognizant that its efficacy is best received when its implementation forms a part of the organization’s strategic objectives and the identified participants are actively engaged throughout the process.

According to RRA’s H1 2024 Global Leadership Monitor, only 36% of industrial leaders described their organization as having proactive succession planning practices, while another 35% described the process as reactive (Figure 8). This highlights a substantial gap in the succession planning diligence of many firms within the industrial sector.

Furthermore, only 35% of the C-level and next gen industrial leaders who have been through a succession experience felt that the process was transparent (Figure 9). This lack of visibility into succession processes is consequential for managing the risk of next generation leaders, as those who struggle to see a future path in their organization are more likely to seek external opportunities.

Figure 8: Which statement best describes the succession practices for C-suite roles at your organization?

_{Source: Russell Reynolds Associates H1 2024 Global Leadership Monitor, (n = 548 industrial leaders).}

Figure 9: Thinking about your most recent succession experience, to what extent do you agree or disagree with the following statements?

_{Source: Russell Reynolds Associates H1 2024 Global Leadership Monitor, (n = 207 industrial leaders).}

As the competition for industrial CFOs remains intense, a reactive approach to succession planning may result in leadership gaps, which risks hindering strategic continuity or creating a misalignment between the leadership capabilities and changing market dynamics. Thoughtfully adopting and integrating proactive succession strategies into talent processes can provide industrial organizations with more optionality in their leadership pipelines, as well as confidence during periods of elevated turnover and stiff competition for CFO talent.

How can industrial organizations address changing CFO market dynamics?

With CFO turnover elevated, and many CFOs opting for retirement or non-executive roles, organizations must proactively invest in CFO succession planning. Boards and executive teams should take deliberate and targeted steps now to prepare for these transitions. Key strategies include:

• Anticipate change: Industrial CFOs had an average tenure of just 4.8 years in 2024, shorter than the 5.9-year average across sectors. Engage in open conversations about your CFO’s career plans early, allowing them to participate in identifying and mentoring their successor.
  
  
• Strengthen succession planning efforts: After engaging in career planning conversations with your CFO, re-evaluate your finance leadership pipeline to align with the current CFO’s potential departure. Ensure talent pipelines include all qualified candidates—consider whether you are looking deep enough into your organization, your assessment and development approaches, and your overall transition plan.
  
  
• Invest in CFO development and mentorship: With the right mentorship and assessment, organizations can become more confident in appointing a first-time CFO. Despite increasing demand for experienced CFOs, the pool of experienced CFOs will continue to shrink, especially as many approach retirement age. Organizations must embrace first-time CFOs, ensuring they receive the right mentorship and leadership development. The value of a trusted, independent mentor —someone with relevant executive experience— is invaluable for CFO candidates preparing for the complexities of the CFO role.

Note
To complete this analysis, RRA analyzed BoardEx data from the S&P500, FTSE 100, FTSE 250, ASX 200, CAC 40, DAX 40, EuroNext 100, Hang Seng, Nikkei 225, NSE Nifty 50, S&P/TSX Composite and STI from 2019 to 2024 (n=731 for industrial and n=1822 across all sectors).

Authors

Linda Barham leads Russell Reynolds Associates’ Financial Officers practice in the Americas. She is based in Chicago.
Romain Clio co-leads Russell Reynolds Associates' EMEA Financial Officers practice. He is based in Brussels.
Shola Brown is a member of Russell Reynolds Associates’ Industrial & Natural Resources Knowledge team. She is based in London.
Jonathan Heng is a member of Russell Reynolds Associates’ Industrial & Natural Resources Knowledge team. He is based in Singapore.
Catherine Schroeder is a member of Russell Reynolds Associates’ Financial Officers Practice Knowledge team. She is based in Toronto.
Mohammed Khan is a member of Russell Reynolds Associates’ Financial Officers Practice Knowledge team. He is based in London.