Although women remain underrepresented in CFO positions, the first half of 2024 saw the highest number of female CFOs appointed in the past five years.
According to the Russell Reynolds Associates’ Global CFO Turnover Index, of the 163 CFOs appointed in the first six months of this year, 44 were women. The tech industry in particular made notable strides in gender diversity, with 38% of incoming tech CFOs women.
While the trend is encouraging, women still have a long way to go. The report noted the S&P 500 is at least 40 years away from achieving gender parity in CFO positions at the current pace of change. In the U.S., men still hold nearly 72% of the approximately 132,000 CFO positions.
Turnover among CFOs rose to 8.9% in the first half of 2024, as more organizations have become accustomed to economic uncertainty and are less hesitant about replacing CFOs, the report said. CFO turnover was especially high in the healthcare and tech industries, which recorded three-year highs of 14.2% and 11.4%, respectively.
The average tenure of a CFO is also becoming shorter, declining to 5.7 years, which is a five-year low, the report said. More CFOs are choosing to retire, with 54% of outgoing CFOs retiring or moving to board roles exclusively, up 15 percentage points year-over-year.
The report said CFOs approaching retirement may not seek another CFO role due to factors such as burnout, financial security, or simply deciding that retirement seems the more attractive option. Instead, many are leveraging their finance expertise in various board roles.
