An organization may be at high risk of losing its finance chief when that person and the CEO lack a solid relationship, according to a recent survey by Salveson Stetson Group.
Salveson Stetson, a national executive search firm, polled nearly 200 CFOs across public, private, and non-profit sectors, with 56% expressing an interest in looking at other job opportunities.
About 88% of finance chiefs surveyed ranked the quality of their relationship with their organization’s CEO as the biggest driver of their willingness to remain on board. After that, company culture (76%) and compensation (76%) were deemed “very important.”
The survey results come as many CFOs face pressures related to economic uncertainty and increased demands within their organizations.
“The CFO has truly become the CEO's co-pilot in running a company," said John Touey, Salveson Stetson’s financial officer practice leader, in a press release. “If the relationship between these two leaders is not strong, the risk of CFO flight increases dramatically.”
CEOs should constantly seek counsel from their CFOs to create “stickiness” in the relationship, according to the release.
Salveson Stetson said its survey results also indicate that a significant amount of CFO transition is likely in the next five years, with nearly a quarter of respondents saying their next career move is retirement (24%).
"If you don't have a ready candidate in your succession plan, more likely than not, you are going to be conducting an external search for your next CFO," Touey said in the release.