Is the CFO the Best Successor to the CEO? Well, It Depends...

Spencer Stuart (Sep 17, 2024) "Is the CFO the Best Successor to the CEO? Well, it depends..." weighs the case for CFO-to-CEO succession. CFOs stand out because they are well-known to the board, hold deep business and functional knowledge, have built stakeholder relationships and are attuned to data, metrics, performance and value. Counterweights: concerns about risk-aversion, growth orientation, experience outside finance, and ability to communicate to diverse audiences. Headline data from Spencer Stuart's CEO Last Mile research: CEOs promoted from the CFO role are on average slower to drive top-line growth than CEOs from other backgrounds — especially in their first years — and only 8% of CFO-turned-CEOs steer their companies to top-quartile performance. Useful evidence for SEA mid-market boards planning founder-CEO succession.