A majority of CFOs we surveyed (61%) say building a strong internal successor pipeline is a critical component of their organizations’ long-term success. But confidence in their current pipelines is uneven: 35% are not confident they have a ready-now successor.
The data also reveals a pattern in where future CFOs come from. Three-quarters of CFOs are promoted from Divisional /Regional CFOs, Head of FP&A, or Controller roles and have a background in Operational Finance or FP&A.
CFOs mentioned a variety of actions they take to help prepare potential successors, including providing broader responsibilities and personal coaching and mentoring.
CFOs were also clear on the skills and personality traits they look for in a potential successor: leadership, business acumen, communication, financial expertise and stakeholder management rounding out the top five.
Their primary motivations for developing a successor include ensuring long-term success for the company and providing CFO opportunities.
Despite this focus on developing an internal candidate, more than 70% of the sitting CFOs we surveyed were externally appointed to the role. The gap between intention and outcome is one that CFOs can aim to close.
