Dive Brief:
- Global CFO turnover increased during the first half of the year to a seven-year high on an annual basis, according to an analysis by leadership advisory firm Russell Reynolds Associates.
- A total of 173 public company CFOs were appointed in the first two quarters of the year, compared with 169 during the same period in 2024, according to the research. The latest number far surpasses the year-over-year average of 160 since 2019.
- “This rise in turnover is driven by increased retirement rates and record high CEO turnover in 2024,” Russell Reynolds said in a report.
Dive Insight:
Starbucks is among public companies that have named a new CFO this year following a CEO departure.
The coffeehouse chain announced in March that it tapped Cathy Smith, then CFO of Nordstrom, to become its finance chief, replacing longtime veteran Rachel Ruggeri. Smith received a cash signing bonus of $5 million as part of her compensation package.
The move was part of a flurry of executive leadership changes at Starbucks after Brian Niccol was installed as CEO in September with the goal of turning around declining sales.
Other companies that have announced CFO transitions this year after a CEO change include Boeing and healthcare company UnitedHealth.
“To mitigate rising CFO turnover, organizations should leverage best-practices in CFO succession planning, including using a new CFO’s arrival as a trigger to assess the finance function, focus on bridging skills gaps, and formalize development plans,” the Russell Reynolds report said.
Fifty-six percent of outgoing CFOs retired or moved to board roles exclusively in the first half of 2025, a seven-year high, according to the research.
Fifty-seven percent of global incoming finance chiefs were appointed internally, slightly higher than 54% in the year-earlier period, an indication that CFO succession plans are starting to come to fruition, the report said.
The findings are in line with trends the leadership advisory firm previously noted in a March report where it flagged early CFO retirement as a key factor behind high turnover, CFO Dive previously reported.
