COVID-19 Hastens CFO Exodus - WSJ
(16 February 2021 – United States) CFO departures from major US institutional enterprises were 28 percent higher in 2020 directly due to COVID-19 business disruptions, according to a Wall Street Journal (WSJ) analysis.
37 CFOs left major Fortune 500 companies in 2020 as the pandemic added to CFOs’ already high workload and long hours, leading to burnout. The 37 CFOs represent a seven percent departure rate compared to the more typical five percent rate. CFOs likely struggled to manage lockdowns, fundraising, talent retention and real-estate reorganizations while working remotely.
Another reason it’s gotten harder: CEOs and company boards expect CFOs to shoulder much of the executive workload. Not only are they expected to manage both the books and the strategy, increasingly, they’re being asked to take over other function areas, like IT and HR.
Given the above average departure rate, companies might have trouble finding replacements. A survey late last year by global consulting firm Spencer Stuart found the pool of CFOs with Fortune 500 experience is dwindling, likely because these sought-after executives don’t want to move to another major enterprise unless they do so as CEO.
"2020 was a brutal year for CFOs, in terms of the mental toll" stated Odgers Berndtson Co-Head of the Financial Officers Practice, Shawn Woessner.
"CFOs are choosing other paths and not electing to do the job twice. The role has changed, and the CFO experience has changed, and the bottom line is, it's gotten harder” said Spencer Stuart Consultant, Tricia Clifford.
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