Good morning. Some modern CFOs now view marketing as a growth center rather than a cost center. Yet, despite this shift in mindset, marketing is still taking a back seat at many companies, squeezed by trade tensions, economic uncertainty, and cautious consumer spending.
New research from McKinsey highlights the evolving role of the chief marketing officer (CMO) and argues that better alignment between the CMO, CEO, and CFO is key to finding new growth opportunities. However, achieving this alignment is easier said than done. When accountability for the customer is unclear and everyone in the C-suite is responsible for growth, often no one truly is.
McKinsey’s analysis of Fortune 500 executive teams, based on publicly available data, reveals a telling trend: companies with a single customer- or growth-focused executive, such as a CMO, grow up to 2.3 times faster than companies with multiple roles sharing those responsibilities.
But simply appointing a CMO isn’t enough. “Pull the CMO back to the center, have them align with the CFO, and get everyone moving in the same direction,” McKinsey recommends. Without clear ownership and support, even the most talented CMO can’t deliver their full potential.
Despite its strategic importance, marketing is often sidelined. According to Spencer Stuart, the percentage of Fortune 500 companies with a CMO dropped from 71% in 2023 to just 66% in 2024.
One challenge: CMOs often struggle to clearly communicate the value and costs of marketing to their finance counterparts. The most successful marketing organizations use sophisticated systems and agreed-upon KPIs to demonstrate the financial impact of their investments, McKinsey finds. This data-driven approach helps get CFOs on board.
Retail is one sector where this alignment is increasingly evident. Ulta Beauty CFO Paula Oyibo, for example, recently told me that the company’s partnership with Beyoncé’s Cécred hair care line is a natural fit—highlighting how marketing and partnerships can drive growth.
Similarly, Mandy Fields, CFO of e.l.f. Beauty, believes in the power of collaboration between finance and marketing. “Oftentimes they’re at odds because finance looks at marketing as an expense,” she told me. “We have taken a different approach, seeing marketing as a sales driver, and that has proven to work for us.” For the full year 2024, e.l.f. Beauty delivered 28% sales growth and a 26% increase in adjusted EBITDA.
Kory Marchisotto, chief marketing officer at e.l.f. Beauty, recently told me that from the first day she and Fields met, “we just knew that, whatever was going to happen around us, there was this common respect and admiration for each other’s career.”
As McKinsey puts it, for growth strategies to succeed, C-suite leaders must truly view marketing as a strategic function.
Have a good weekend. See you on Monday.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Fortune 500 Power Moves
Chris Turner, chief financial and franchise officer for Yum! Brands Inc. (No. 491) was promoted to CEO, effective Oct. 1. Turner, will succeed current Chief Executive Officer David Gibbs, who, in March, informed the board of his intention to retire after 37 years with the company. Gibbs will serve as an adviser until the end of 2026. Turner joined Yum! Brands in 2019 as CFO. Last year, his position expanded to include chief franchise officer. Previously, Turner held senior roles at PepsiCo, including SVP and general manager, as well as SVP of transformation for PepsiCo’s Frito-Lay North America business.
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 this week:
Marc D. Graff was appointed SVP and CFO of Ciena Corporation (NYSE: CIEN), a networking software provider, effective Aug. 1. Ciena previously announced the retirement of James E. Moylan, Jr., SVP and CFO, effective Aug. 28. Before joining Ciena, Graff served as SVP and CFO at Altera Corporation. He was also previously CFO and chief operating officer for Intel’s Data Center and Artificial Intelligence Group, and held other executive finance roles across various manufacturing and business units at Intel.
Tim Karaca was promoted to SVP and CFO of SolarWinds, a provider of IT management software, effective June 16. Karaca served for three years as the group VP for strategic finance and investor relations at SolarWinds. Before joining the company, he spent nearly two decades in the technology industry and Wall Street serving in senior finance roles. His leadership experience spans senior roles at AIG, Microsoft, and Bridgewater Associates.
James Cook, CFO of Sealy & Company, a real estate investment and services firm, will officially retire after 24 years of service on June 30. James Gilligan will succeed Cook as CFO, effective June 16. Gilligan joined the company in April and brings an executive leadership background centered around real estate investments and private equity. He was previously CFO and treasurer of Farmland Partners, and before that worked at Equity International and Equity Group Investments.
Alice Heathcote was appointed CFO of Origis Energy, a renewable energy and decarbonization solution platform, effective immediately. Most recently, Heathcote served as CFO at Strata Clean Energy. Before that, she spent seven years at ContourGlobal, a global independent power producer. During her tenure, she held several leadership roles, including SVP of financing and acquisitions, where she led ContourGlobal's IPO on the London Stock Exchange. She also served for nearly four years as CFO of the Renewable Division.
Paul Joachimczyk has been appointed CFO of Sonoco Products Company (NYSE: SON), a sustainable packaging provider, effective June 30. Joachimczyk previously was SVP, CFO and corporate secretary of American Woodmark Corporation. Before that, he was VP of finance for TopBuild Corp. and held finance leadership positions with Stanley Black & Decker and General Electric’s healthcare and capital markets divisions.
Kevin McKenzie was named CFO of Ensora Health, a software and services provider. McKenzie joins Ensora Health from Pure Healthcare, where he served as CEO and CFO. Before that, he held leadership roles at SimpleNexus, ProcessMAP, and AdvancedMD, where he led financial restructuring and operational integration for these SaaS companies.
Big Deal
Kiteworks’ “AI Data Security and Compliance Risk Survey” finds that AI governance is lagging at many companies. Only 17% of respondents said their companies can automatically prevent employees from uploading confidential data to public AI tools. The other 83% rely on human measures—such as training sessions, audits, warning emails, or guidelines—or do nothing at all, according to the report. Meanwhile, the research also found that employees routinely paste customer records, financial data, and trade secrets into ChatGPT and similar AI services—often from personal devices the company cannot even monitor.
The findings are based on a survey conducted by Centiment of 461 cybersecurity, IT, risk management, and compliance professionals.
Going deeper
Here are four Fortune weekend reads:
“Goldman Sachs says Trump’s spending plan won’t stop the national debt from hitting ‘unsustainable’ highs not seen since World War II” by Greg McKenna
“A $6 billion logistics CEO credits an ice cream flavor with helping him understand why customers need fresh innovation” by Amanda Gerut
“David Zaslav will take a pay cut after Warner Bros. Discovery splits up—with a big hit to his bonus” by Chris Morris
“Here’s how much you need to walk to see fitness gains, according to experts” by Ani Freedman
Overheard
“We view this autonomous chapter as one of the most important for Musk and Tesla in its history as a company.”
—Wedbush Securities analysts wrote in a Friday note that special invitations went out early this morning from Elon Musk’s Tesla, giving selected Tesla users permission to use the Model Y Robotaxi service in Austin starting on Sunday.
