Good morning. The first half of 2025 brought some unexpected shifts in the ranks of Fortune 500 CFOs.
“The CFO market is still quite hot,” said Kirby Perkins, managing director at executive search firm Crist Kolder Associates.
However, there’s a dramatic swing toward internal promotions for CFOs, with external hiring of finance chiefs down almost 50%. Data from the firm’s summer 2025 Volatility Report, shared with CFO Daily, which covers data from 667 Fortune 500 and S&P 500 companies, highlights this trend.
Through July 31, only 28% of CFOs were hired externally—a stark contrast to last year’s 10-year high, when 47% of CFO turnovers were filled by candidates from outside the organization.
“This year, we’ve seen the lowest level in a 10-year stretch,” Perkins said.
She explained that, over the past three years, roughly 65% to 75% of all CFO turnovers typically occur by midyear. Based on this pattern, external hires this year are set to come in below average unless there is a much higher number of CFO turnovers during the rest of 2025.
The rise of specialized C-suite roles is creating fresh opportunities for internal promotion, especially as these new positions often require deep knowledge of company operations and strategy, according to Deloitte research.
A recent example of an internal hire: In April, Lockheed Martin promoted Evan Scott to CFO, succeeding Jesus “Jay” Malave. Scott is a 26-year company veteran, having served as treasurer and CFO of two business areas.
Crist Kolder Associates’ analysis also points to a continued uptick in the pipeline of CFOs moving into CEO roles at Fortune 500 and S&P 500 companies. In the first half of the year, 7.5% of sitting CEOs came directly from a CFO chair, up from 6.5% in 2015. So far this year, there have been about 53 CEO turnovers in the data set. An example of an internal move: In June, Yum! Brands, Inc. elevated its finance chief, Chris Turner, to the role of chief executive. Turner joined Yum in 2019 as CFO, his first time in the role.
As CFO recruiters, Perkins said the firm has a front-row seat to the evolution of the CFO role. The growing number of finance chiefs advancing to the CEO seat reflects a shift in how the market perceives the CFO—as a leader accountable for business results, from total shareholder return to building enterprise value, she explained.
“CFOs are saying, ‘If I’m going to be viewed as accountable for those business results, I need to own some additional functions,’” she said. “We’re seeing an operationalization of the CFO chair.”
Finance chiefs they speak with are seeking rotations into P&L, strategy, and commercial roles to prepare themselves for CEO ascension, Perkins said.
“The most successful CFOs that we talk to now have an ultimate goal of reaching the CEO chair—where it used to be that the ultimate goal was to become CFO,” she said. “It’s no longer viewed as a ceiling.”
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Patraic Reagan was appointed EVP and CFO of Crocs, Inc. (Nasdaq: CROX), a casual footwear company, effective Sept. 22. Reagan will succeed Susan Healy, who tendered her resignation on Aug. 28, effective immediately. With approximately 30 years of financial and operational leadership experience at global consumer companies, Reagan most recently served as the CFO for SharkNinja, Inc., a global product design and technology company. Before that, he spent approximately 14 years at Nike, Inc.
Rose Sink, EVP and CFO of Motiva Enterprises, will retire effective Sept. 1. Glenn Carter, Motiva's controller and VP of enterprise risk, has been appointed CFO. Sink retires after more than 30 years in the energy industry, holding leadership roles in both business operations and financial management. She joined Motiva in 2014 and served as general manager of supply and logistics before being appointed CFO in 2020.
Big Deal
The way employees receive praise or feedback may vary by generation, according to a survey by ResumeTemplates.com.
About 76% of managers surveyed believe Gen Z employees need more praise than older workers. The findings are based on a survey conducted in August of 1,050 U.S. managers who directly supervise Gen Z employees.
Respondents said verbal praise is the most common way managers recognize Gen Z employees, with 19% giving it daily and 84% providing it at least weekly. Other common methods are email (37%), recognition software (27%), giving shout-outs during meetings (23%), and offering praise via Slack or similar tools (21%) at least several times a week.
Six in 10 managers say Gen Z’s performance improves when they receive more praise, underscoring the role recognition plays in driving productivity.
“Effective managers know feedback works best when recognition and constructive input go together,” according to ResumeTemplates.com’s Chief Career Strategist Julia Toothacre. “The sandwich method is a simple way to do this by placing constructive feedback between two positives.”
Going deeper
Wharton’s Future of Finance series, "The Rise of Crypto and Digital Money," is hosted by Wharton finance professor Itay Goldstein. It explores how cryptocurrency, blockchain, and digital assets are reshaping markets, regulation, and the future of money. The series brings together leading thinkers from academia, policy, and industry. Check out the full series here.
Overheard
"Fraud detection can’t be isolated in today’s threat landscape. It must be embedded within financial infrastructure."
—Ashish Thapar, VP and head of cybersecurity, APAC at NTT DATA, writes in a Fortune opinion piece: "Asia is ahead of the curve in using AI to fight fraud. Here’s what the rest of the world can learn from it."
