External CFO Hires Hit 10-Year High:
Here’s Why and What You Should Do About It
The demand for top-tier finance leadership continues to rise...
…with more companies looking outside their ranks for Chief Financial Officer (CFO) hires than ever before. According to recent reports, 44% of Fortune 500 and S&P 500 companies opted for external CFO candidates in the first half of this year, hitting a 10-year high.
At TXT International, we are constantly conducting several CFO searches across both the United States and Europe, and our deep, active pools of highly qualified CFO talent are ready to meet this growing demand.
Why Are External CFO Hires Increasing?
- Lack of succession planning: While strong internal talent development programs should ideally prepare future leaders from within, a combination of factors has led companies to look externally for their next finance chiefs. In a recent poll we conducted on LinkedIn to our 35k + followers, the majority of which work in HR and/or Talent Acquisition, 100% of our respondents indicated that their company is NOT prepared for C-Suite & Boardroom succession planning.
- Post-COVID fallout: In the past five years, particularly due to the disruptions caused by the pandemic, finance teams have been under immense pressure. This has often led to organizations focusing on stability, keeping their high-potential employees put, rather than moving them into broader roles where they could gain the business acumen needed for leadership. Unfortunately, prioritizing short-term stability in favor of long-term professional growth forces companies to hire externally for C-Level and Executive positions.
- Prevailing Geopolitical and Economic Uncertainty: In our 1H24 insights report, we noted that finance rolls were one of the top 3 engagements we have worked on so far this year. Companies continue to shore up their financial strategies and mitigate potential risks associated with the dynamic global economic outlook, as volatility, and ambiguity prevail.
What You Should Do About It
Whether your company is facing planned leadership changes or seeking fresh perspectives in a fast-changing market, an external CFO hire might be the best move. At TXT International, we have a proven track record of securing the right CFO talent across industries.
Don’t hesitate to look outside of your industry
Over the past year, Alphabet hired pharmaceutical firm Eli Lilly’s finance chief to replace their long-time CFO while, Costco Wholesale tapped Gary Millerchip, formerly the CFO of grocer Kroger, to take over for Richard Galanti, their CFO of nearly 40 years. Global grain giant Archer Daniels Midland named the CFO of industrial product maker 3M as its executive vice president and CFO. Strong financial skills are transferable across industries, and outsiders can often bring a fresh perspective.
Take Advantage of Active Talent Pools Ready for Placement
We have built and maintained a network of highly skilled CFO candidates who are ready to step into leadership roles. Our talent pool includes executives with extensive experience in:
- Financial strategy and management in diverse sectors
- Leading organizations through periods of rapid growth or restructuring
- Navigating financial challenges in fast-changing markets, and
- Implementing innovative solutions in a post-pandemic world
At TXT International, we specialize in finding executives who not only meet the technical requirements of the role but also align with your company’s culture and strategic objectives. Our approach is both innovative and tailored to your specific needs, ensuring that we find the most suitable candidates who can make an immediate impact.
Whether you’re looking for a finance chief who can drive growth, optimize operational efficiency, or lead complex financial restructurings, our team of experts will guide you through the process seamlessly.
Talk to us
Have any questions? We are always open to talk about your executive hiring needs, challenges, and opportunities, and discuss how we can help you.