Preparing for the Next Generations of CFOs
Rich Higgins, CPA
Focused on You. Dedicated to Your Success.
July 9, 2018

An article entitled “Preparing for the Next Generation of CFOs” by Sarah Ovaska-Few published in Financial Management on June 1, 2018, expressed the importance of having a succession plan for your CFO. The article cited the findings of a survey conducted by Korn Ferry, an executive recruiting and consulting firm. The survey discovered that only 34% of the more than 700 global CFOs reported their companies had a succession plan in place.

The Korn Ferry survey found that 46% of listed companies surveyed had CFO succession plans and 28% of private companies. The survey also uncovered that only 19% of the companies with CFO succession plans thought there was an internal candidate capable of stepping into the role.

Having a CFO transition plan in place is just as critical to the sustainability of a company as a CEO succession plan. “Succession plans, even if informal, need to be prepared for unexpected CFO departures and to build strong financial teams,” said Chuck Eldridge, CPA, a senior client partner in Korn Ferry's Atlanta office.

“Plenty of companies have made CFO succession planning a priority, with larger, public companies leading the way in establishing formal succession plans,” continues Eldridge. “Half of the companies with revenues topping $1.5 billion have CFO succession plans, and public companies are also keener to prepare for CFO departures.” 

Feel free to call any member of our team at 610-828-1900 with questions on how you can develop a CFO succession plan at your company. You can also contact either Rich Higgins, CPA, principal at 732-341-3893 ext. 17 or and myself . We are always happy to help.
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC

Disclaimer This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).