Good morning. As economic uncertainty continues, the pace of CFO turnover has increased in the first half of 2024, according to research. Some finance chiefs are looking to retire, and others are moving on to new positions.
Taking a look at H1, from Jan. 1 to June 30, CFO turnover reached 8.9% globally, outpacing levels in 2022 and 2023, according to leadership advisory firm Russell Reynolds Associates (RRA). In H1 2023, turnover reached 8.3%, while the number for the same period in 2022 was 8.5%.
RRA’s Global CFO Turnover index is a composite of several indexes such as the S&P 500, FTSE 100, and ASX 200 that is updated quarterly. The data finds that, globally, 163 new CFOs were appointed in H1 2024.
Another finding is that CFOs are choosing to retire, with 54% of H1 outgoing CFOs retiring or moving to board roles exclusively, which is up 15 percentage points year-over-year—a five-year high, according to RRA.
The reasons why they’re not seeking another CFO role range from burnout to financial security to simply feeling that retirement is the best option.
After a few years of a tumultuous economic environment, some CFOs who’ve been at their company for enough time that their equity is vested are “just ready to hang it up,” Jenna Fisher, managing director and head of the CFO practice at RRA, told me. They could be ready for the next step beyond a C-suite exec, such as an operating partner, an angel investor, or a full-time board member.
Some recent examples that come to mind are Mike Smith, who has served as EVP and CFO at McCormick & Company since 2016, and has been with the company for more than three decades. He will retire on Feb. 28, 2025. KC McClure, CFO at Accenture, is retiring after 36 years of service. McClure will step down as CFO and member of the Global Management Committee on Nov. 30, and retire on March 31, 2025. Tracey T. Travis, EVP and CFO at The Estée Lauder Companies Inc. has decided to retire, effective June 30, 2025, after more than 12 years of leadership and service at the company.
Jack Hartung, CFO at Chipotle Mexican Grill, Inc. since 2002, was set to retire on March 31, 2025. However, upon Chipotle CEO Brian Niccol leaving for the CEO role at Starbucks, Inc., Hartung has agreed to postpone his retirement, and take on the role of president of strategy, finance, and supply chain.
When looking particularly at the S&P 500, more than half (54%) of outgoing CFOs moved to new roles, according to RRA. CFOs are also getting promoted, where they’re moving into chief operating officer or president roles, even CEO roles in some cases, and that’s creating a constraint on the supply side of CFOs, Fisher said.
A recent announcement is Raymond James Financial promoting its CFO Paul Shoukry to president, and it’s expected that he will become the firm’s CEO sometime during fiscal 2025.
It will be interesting to see if the trend continues in the second half of 2024.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
D. Anthony Scaglione, EVP and CFO of The ODP Corporation (NASDAQ: ODP), a provider of products, services, and technology solutions, is stepping down from his role to pursue another career opportunity. His last day will be Sept. 13. The company is working on plans to fill the chief financial officer role. Scaglione will continue to work closely with CEO Gerry Smith until his departure date.
Nigel Clerkin was named CFO at ICON plc (NASDAQ: ICLR), a health care intelligence and clinical research organization. Most recently, Clerkin was CFO at LetsGetChecked, a global provider of at-home health care services. Prior to that, he was CFO at ConvaTec, a global medical and technologies company, before becoming UDG Healthcare’s CFO in 2018.
Big Deal
Mars Inc., the pet care, snacking and food company known for brands like M&Ms and Snickers, will acquire Kellanova (NYSE: K), the company announced on Wednesday. Mars will pay $83.50 per share in cash with the total value of the transaction at $35.9 billion.
Kellanova was created last year when the Kellogg Co. divided into three companies. It is the home to snacking brands, including Pringles, Cheez-It, Pop-Tarts and Eggo. The company had 2023 net sales of more than $13 billion, with a presence in 180 markets and approximately 23,000 employees.
Mars is a private family-owned global company with more than $50 billion in annual sales and more than 150,000 employees. Claus Aagaard, CFO at Mars, Inc. said in a LinkedIn post on Wednesday: “We have seen healthy growth across our diverse portfolio in recent years and Kellanova is a fantastic addition and a great fit for our Mars Snacking business. With Kellanova, we will accelerate our snacking goals to unlock responsible growth in more geographies, while driving an even greater positive societal impact.”
Going deeper
Starbucks’ new CEO Brian Niccol was offered roughly $113 million in total compensation, Fortune’s Amanda Gerut reports. Niccol also won’t be required to relocate to the company’s headquarters in Seattle, although he agreed to commute from his residence in California as necessary. You can read more about Niccol’s sign-on bonus, equity grants, and cash bonuses here.
Overheard
“We all now have an amazing new technology at our fingertips. The natural reaction is to believe that ‘everything is about to change.’ The reality is that some things will change but most will resemble the past. I am willing to bet that one of those things that will persist is the space to create amazing companies and products alongside the headline-grabbing giants.”
—Eric Olson, cofounder and CEO of AI startup Consensus, writes in a new Fortune opinion piece.
