(Bloomberg) — More than a quarter of FTSE 100 finance chiefs have left their jobs so far in 2023, the highest rate in five years and almost double the same period in 2022.
Depressed bonuses, the broadening role of chief financial officers and the temptation of working in a private equity owned business were all cited as reasons for the churn by executive search firm Russell Reynolds Associates.
Pressure has been growing on CFOs, with rate hikes meaning debt-laden companies are faced with higher interest payments.
“Coupled with the most challenging economic environment in decades and a rising tide of regulation, many CFOs are increasingly considering their current positions,” said Ben Jones, co-head of the financial officers practice in EMEA for Russell Reynolds, in a statement.
Russell Reynolds said the value of long-term incentive plans for CFOs had failed to recover after the pandemic, playing a factor in the decision to retire. So far this year, 61% of departing CFOs retired, at the average age of 56. That compares with 46% in 2022.
Globally, 200 CFOs of large listed companies left their jobs in the first three quarters of 2023, compared with 196 last year.
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The research showed that 39% of the FTSE 100 CFOs appointed so far this year were women.
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