Good morning. Reaching the CEO seat can take years of preparation—to say nothing of how much more hard work is required to succeed as a chief executive.
Take for instance Microsoft CEO and Chairman Satya Nadella, who succeeded Steve Ballmer in 2014, when the company was struggling. Fast forward to today, and Nadella wants the software giant to have the most capable, popular AI models on the market. For a Fortune feature, my colleague Jeremy Kahn sat down with the CEO of the tech icon to find out what it’s going to take to stay ahead in the AI age.
Kahn writes: “In 10-plus years as CEO, Nadella has reinvigorated the company, successfully steering it through two technological transformations: from PCs to the era of cloud computing, and now, to the age of AI. Nadella’s prescient and early bet on OpenAI and its technology, and the fruitful-if-sometimes-tense relationship that ensued, have given Microsoft as good a shot as any company at supremacy in this new era. The company arguably hasn’t been this powerful since it dominated the PC market in the 1990s ‘Wintel’ era.”
Kahn also notes that there’s no guarantee Microsoft will retain its lead. However, he adds: “Nadella’s approach to leadership reflects his acute awareness of these risks.” He and his team are constantly listening, prioritizing paying attention to pivots in users’ needs and preferences, and continually investing in technologies and talent. You can read Kahn’s complete conversation with Nadella here.
Many finance chiefs also want to take on the biggest challenges in business. Egon Zehnder, a leadership advisory firm, recently surveyed 581 CFOs worldwide, finding that 60% want to become CEOs and 70% of respondents believing that they’re ready to do so. The most cited obstacles to landing the top seat were networking and visibility (46%), followed by customer and market knowledge (30%), and operational experience (25%).
The S&P 500 average tenure for a CEO is just over nine years, and over the past 20 years, tenures have held fairly stable. But for even the most effective CEOs, there is a right time to consider an exit. My colleague Geoff Colvin explores this in another Fortune feature about how CEOs who stay too long can actually harm their firms.
“Those who study CEOs for a living appear to have homed in on more precise answers—and discovered that the expiration date often arrives just when CEOs have reached that stage where they seem strongest,” Colvin writes. Dumping a leader just because he or she has hit the decade mark may not be be the best strategy for many companies, but most firms should probably begin considering a succession plan within a few years of that. You can read more of Colvin’s deep dive into how boards can get succession planning right here.
Have a good weekend.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Some notable moves:
Michael King, CFO at SAB Biotherapeutics (Nasdaq: SABS), a clinical-stage biopharmaceutical company, will be stepping down from his position to accept a role as CEO at a privately held oncology company, effective June 4. He will continue as an advisor to SAB through the end of the year. Mark Conley, SAB’s current VP of finance, will continue as interim CFO. SAB has launched a formal search process to identify the next CFO.
Antonella B. Franzen, CFO of DuPont's Water and Protection segment, was promoted to DuPont's (NYSE: DD) chief financial officer, effective June 1. Frazen will succeed Lori D. Koch, who was selected to succeed Edward D. Breen as CEO. Koch has served as DuPont's CFO since February 2020. Franzen joined Dupont in 2022. She was previously VP, chief of investor relations and communications officer at Johnson Controls International.
O. James Sterling was named CFO of bluebird bio, Inc. (Nasdaq: BLUE), effective June 10. Sterling succeeds Chris Krawtschuk, who joined bluebird bio as chief financial officer in 2022. Sterling most recently served as CFO of Renalytix plc, a diagnostics company. He was previously managing partner at Renwick Capital LLC, and managing director at investment banks Brock Capital Group LLC and Aleutian Capital Group.
Ruben Baldew was named CFO at Nomad Foods Limited (NYSE: NOMD), effective June 17. Baldew will succeed Samy Zekhout, who is leaving his position, and will remain with the company until July 31. Baldew joins Nomad Foods with over 20 years of global consumer products experience, most recently as CFO of Accell Group. Before that, he spent over 15 years at Unilever in various finance roles.
Jim McKinney was named CFO at SiriusPoint Ltd. (NYSE: SPNT), a global specialty insurer and reinsurer, effective June 3. McKinney was most recently the EVP and CFO of Kemper Corporation. Before that, he was EVP and CFO for Banc of California.
Steve Kopjo was named CFO at Galaxy Gaming, Inc. (OTC: GLXZ), an independent developer of casino table games and technology, effective May 28. Kopjo was most recently VP of finance at Everi Holdings. He has over 15 years of finance experience in the gaming industry, holding a series of roles with both operators and suppliers, including SHLF entertainment, Wynn Resorts, and Play AGS.
Butch Oorlog was promoted to CFO at Raymond James Financial, Inc. (NYSE: RJF). Oorlog, currently chief accounting officer, will succeed Paul Shoukry, who has been named the firm’s CEO successor.
Big Deal
Working in finance is becoming more appealing to recent college graduates. CFA Institute's 2024 Global Graduate Outlook Survey finds finance is the top industry where graduates are confident in their career prospects (30%), with a six percentage point increase from 2023. Tech came in second at 20%.
Overall, 78% of graduates are confident in their future career prospects today, and 72% rate their career prospect confidence as at least seven out of 10—five points higher than last year. However, retention may be an issue. The survey found that 71% of graduates do not intend to stay in their first jobs longer than four years, a slight increase from 2023. The findings are based on a survey of 9,916 respondents ages 18-25.
Going deeper
Here are a few Fortune weekend reads:
“Boeing’s ongoing CEO search led to a $150M-plus potential payday for Carrier chief” by Shawn Tully
“Fed official says the U.S. has the ‘luxury’ to play the waiting game with inflation thanks to the strong labor market” by Paolo Confino
“Apple is getting a once-in-a-decade secret weapon in AI-enabled ‘intelliphones.’ Bank of America sees its stock surging 20%” by Will Daniel
“It’s not a contest: Bragging about your work stress may make you seem less likable and incompetent, says new study” by Lindsey Leake
Overheard
“Both of our customer bases that have a lot to do with how the American economy runs are saying, ‘You know what? I’m being careful, slowing things down.’”
—Bank of America CEO Brian Moynihan said Thursday at a financial conference held in New York, CNBC reported. Due to high inflation, U.S. consumers and businesses are cautious about spending this year, Moynihan explained.
