CFOs seen as biggest internal threat to CEO job security
The "CEO Insomnia Index" report released by Boston Consulting Group (BCG) indicates that more than a quarter of CEOs (26%) view the CFO as the biggest threat to their job security within the C-suite, with the COO (24%) and CCO (20%) following closely. The report analyzes that the CFO's frequent interactions with the board make them a "natural successor" to the CEO, heightening CEO unease. Meanwhile, the trend of CFOs being promoted to CEO reached a ten-year high last year, with over 10% of new CEOs coming from finance executives.
Key finding: CFO emerges as top internal threat to CEO job security
According to the Boston Consulting Group (BCG) report "CEO Insomnia Index" released this Wednesday, approximately one-quarter (26%) of surveyed CEOs view the CFO as the greatest internal risk to their job security, followed closely by the Chief Operating Officer (COO, 24%) and the Chief Commercial Officer (CCO, 20%).
The report notes that this perceived threat may stem from the ongoing interaction between CFOs and board members. Financial chiefs regularly report financial performance, forecasts, and capital performance to the board, a role that may position them as the "natural successor" to the CEO.
"While having a strong successor should be part of every CEO's legacy plan, it is only human to feel uneasy when the replacement is waiting within one's own executive team, especially during periods of heightened volatility or disappointing performance." — BCG report
Deeper analysis: Trend of CFOs rising to CEO intensifies anxiety
CEO succession anxiety may partly stem from recent trends. According to the latest "Volatility Report" from Crist Kolder Associates, the proportion of CFOs promoted to CEO last year reached its highest level in a decade, with over 10% of sitting CEOs coming directly from financial executive roles, compared to approximately 7% in 2024.
For example, in February this year, Japanese automaker Toyota promoted CFO Kenta Kon to succeed Koji Sato; last year, Unilever abruptly appointed its CFO Fernando Fernandez as CEO.
Advice to alleviate pressure: Clarify role division
BCG partner and director Gregory Rice suggests that CEOs and CFOs can strengthen genuine partnership by clearly delineating their respective responsibilities and obligations, thereby alleviating the pressure caused by these concerns.
"When both parties sign off on the value creation strategy with the board, if a gap emerges, the responsibility does not fall entirely on the CEO's shoulders." — Gregory Rice
Contrast finding: AI is not a primary stressor
The report also found that AI has not yet become a "major source of daily stress" for many CEOs, with the vast majority (84%) of surveyed CEOs stating that the need for innovation brings more energy than pressure. BCG's Global Chief Marketing Officer and CMO of Technology Build & Design, Jessica Apotheker, said it is not surprising that technology ranks only ninth among the 11 major stressors.
"AI pulls CEOs away from the minutiae of daily performance, giving them the opportunity to learn new things and become visionaries who have a meaningful impact on the company's trajectory." — Jessica Apotheker
Survey methodology
BCG's index and report are based on a survey of approximately 500 CEOs from companies with annual revenues exceeding $100 million, conducted from January 7 to January 21, combined with five years of CEO turnover data from S&P 1200 index companies.