July 9, 2018
An article entitled “Preparing for the Next Generation of CFOs” by Sarah Ovaska-Few published in
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
. We are always happy to help.