“There is so much demand for CFOs,” Fisher told me. “We’re not getting talent, by and large, from the accounting firms; it’s still selectively coming from the investment banking firms,” she said. And unlike 10 or more years ago, there isn’t the same pipeline of CFO stars birthed from executive development programs at industrial conglomerates, she explained.

One example is GE, which had a robust program to develop executives. Its alumni include Delta CFO Dan Janki who, before taking on his current role in 2021, spent more than 25 years at GE, getting his start in the company’s financial management program. (GE is no longer a conglomerate but now three separate public companies.)

RRA, a global leadership advisory and executive search firm, is already focused on the question: Where is the next generation of CFO talent coming from?  

“I don’t yet know the answer to this,” Fisher said. “I think being a CFO is such a phenomenal career. But we do not have enough of them.” 

That’s evident in RRA’s 2024 Global CFO Turnover Index Annual Report, which finds that global CFO turnover reached 15.1% in 2024, just below the record turnover witnessed in 2023 at 16.2%. The average outgoing CFO tenure is at a six-year low of 5.8 years. And, 54% of outgoing CFOs retired or moved exclusively to board roles last year. The report is a composite of several indexes such as the S&P 500, FTSE 100, and ASX 200. 

The S&P 500, in particular, saw its highest CFO turnover in six years, matching the peak set in 2021. And at these large U.S. companies, retirement rates increased year-over-year, reaching a six-year high in 2024, according to the research. The pool of experienced CFOs continues to decrease as transitioning CFOs continue to move to non-CFO roles.

An increasingly complex job

Fisher anecdotally shared insight on why some finance chiefs are eyeing retirement. The capital markets have performed so well for so long, and execs may have saved money to the point where they’re financially in a good place to retire, she said. And in retirement, they can be an active board member.

Also, the job of CFO is becoming more complex, Fisher said. The broadening of the position now can mean taking on an additional role like chief operating officer, or having the IT team report to the CFO for example. 

That’s part of why many companies want finance chiefs who’ve earned their stripes. In 2024, 40% of global CFO appointments were experienced CFOs—the highest percentage in six years, according to RRA.

But as it becomes more competitive to hire experienced CFOs, it’s a good time for aspiring finance chiefs to throw their hats in the ring. “There just simply are not enough people to fit all of the seats that are open, which is why we continue to see first-time CFOs get the nod,” Fisher said. 

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Fortune 500 Power Moves

Thomas J. Edwards was named COO and CFO at Macy’s, Inc. (No. 172), effective June 22. Adrian Mitchell will be leaving the company. Mitchell joined Macy’s in November 2020 as CFO and was appointed to the additional role of COO in March 2023. He will continue in his current capacity until June 21. Edwards has nearly 40 years of experience in the retail, consumer goods, and hospitality industries. He is currently the CFO and COO of Capri Holdings Limited. Before joining Capri, he was EVP and CFO of Chili’s owner Brinker International, Inc., and has held numerous finance and operations positions at Wyndham Hotel Group, Kraft Foods, and Nabisco Food Service Company.

Every Friday morning, the weekly Fortune 500 Power Moves column tracks Fortune 500 company C-suite shifts—see the most recent edition. 

More notable moves:

Rajal Mehta was appointed interim CFO at Capri Holdings Limited (NYSE: CPRI), a global fashion luxury group. Thomas J. Edwards, Jr., EVP, CFO and COO, will be leaving the company for his new position at Macy’s Inc., effective June 20. Mehta is currently the CFO of Michael Kors. Capri has commenced a search for Edwards’ replacement.

Big Deal

A new S&P Global Market Intelligence analysis finds that operating expenses for rated U.S. nonfinancial companies rose in Q4 2024 as investment-grade companies recorded a new high in business costs. Total operating expenses for U.S. companies rated by S&P Global Ratings grew to $3.885 trillion in Q4, according to the analysis. 

This represents an increase of just over $123 billion from the previous quarter and more than $200 billion higher than the Q4 2023. Operating expenses include rent, employee pay, office supplies, equipment and other non-capital expenditures.

Going deeper

“Future of jobs: 5 ways to match skills to more meaningful work” is a new report released by the World Economic Forum. By 2030, over 20% of jobs worldwide are expected to evolve due to significant labor-market disruptions, according to the organization. A five-step framework was created as a guide on how to harness technology to connect talent with the jobs of the future. 

Overheard

“We scarcely have a conception of what capabilities, even creativity, might emerge from AI systems as they tackle computation and reasoning at ever higher levels, which could soon surpass the ability of any human to even imagine.”

—George C. Lee II, the co-head of the Goldman Sachs Global Institute, writes in a Fortune opinion piece, “When AI builds AI: The next great inventors might not be human.”