Global CFO Turnover Rate Hits Seven-Year High, Ripple Effects of 2024 CEO Departure Wave Emerge
The Global CFO Turnover Index released by Russell Reynolds Associates shows that CFO appointments at global listed companies reached 173 in the first half of 2025, an increase of 4 year-on-year, marking the highest level in seven years. Departing CFOs who retired or transitioned to board director roles accounted for 56%, while the internal promotion rate rose to 57%. The analysis suggests that the record number of CEO departures in 2024 (202, up 9% year-on-year) is one of the main driving factors.
Key Points
- Analysis by leadership consultancy Russell Reynolds Associates shows that the CFO turnover rate at listed companies globally rose to a seven-year high on an annualized basis in the first half of 2025.
- The research noted that 173 CFOs were appointed at listed companies in the first two quarters of this year, compared with 169 in the same period in 2024. The latest figure far exceeds the average of 160 for the same period each year since 2019.
- "The rise in departures is driven by an increase in retirements and the record CEO turnover in 2024," Russell Reynolds said in its latest Global CFO Turnover Index. The firm reported in January that 202 CEOs left their posts globally last year, a record high, up 9% year over year.
In-Depth Analysis
Starbucks is one of the listed companies that appointed a new CFO following a CEO change this year. The coffee chain giant announced in March that it had hired Cathy Smith, then CFO of Nordstrom, as its finance chief, succeeding long-serving Rachel Ruggeri. Smith received a $5 million cash signing bonus as part of her compensation package.
The move is part of a series of executive-level adjustments at Starbucks following the appointment of Brian Niccol as CEO in September 2024 to reverse a sales decline.
Other companies that announced CFO transitions after CEO changes include Boeing and healthcare company UnitedHealth.
"To mitigate the rising CFO turnover rate, organizations should apply best practices in CFO succession planning, including treating the arrival of a new CFO as an opportunity to assess the finance function, focusing on closing skill gaps, and establishing formal development plans," Russell Reynolds recommended in the CFO report.
The research shows that 56% of CFOs who left their posts in the first half of 2025 departed solely due to retirement or moving to board roles, the highest proportion in seven years.
The report states that 57% of new finance chiefs globally were promoted internally, slightly up from 54% in the same period last year, indicating that CFO succession planning is beginning to yield results.
These findings align with trends in the firm's March report. CFO Dive previously reported that the report identified early CFO retirements as a key factor in the elevated turnover rate.