What’s driving record CFO turnover?

The 2025 Russell Reynolds Associates (RRA) Global CFO Turnover Index, released this morning, was shared exclusively with CFO Daily. Data from the global leadership advisory firm shows record appointment levels alongside sustained exits, as boards look for finance leaders who can steer transformation, manage external stakeholders, and increasingly serve as potential CEO successors.

Global CFO appointments hit a seven‑year high in 2025 with 316 incoming CFOs, a 10% increase over 2024 and 12% above the long‑term average of 281.

The S&P 500 was a major driver: companies hired a record 106 CFOs in 2025, up 19% from 89 in 2024 and well above the seven‑year average of 86. Departures remained elevated, with 262 CFO exits worldwide—2% higher than 2024 and 5% above the seven‑year average—but appointments outpaced exits by 54 roles, the widest gap since Russell Reynolds began tracking CFO turnover in 2019.

Behind these numbers is a role under mounting pressure. Linda Barham, who leads RRA’s U.S. Financial Officers Practice, says the CFO job has become “increasingly complex,” with a clear scope expansion. Traditional finance responsibilities now often include enterprise‑wide cost transformation, shared‑services build‑outs, and large‑scale operating model redesigns. At the same time, CFOs face heightened external pressure, with boards expecting them to be front‑line communicators with investors and the Street on strategy, performance, and transformation narratives.

Technology and AI are amplifying this shift. AI is now a regular board‑ and CEO‑level topic in CFO searches, but Barham notes companies are not typically seeking “AI‑native” finance chiefs. Instead, they want experienced leaders who have already guided organizations through major enterprise‑wide changes—such as digital modernization, cost programs, and structural redesign—and can apply those capabilities to AI and data‑driven transformation.

Nick Roberts, who leads CFO and senior financial officer searches at RRA, highlights two additional drivers of churn: record CEO turnover and rising shareholder activism. CEO changes in 2025 were about 21% above the eight‑year average, and new CEOs often reassess the CFO seat as they shape their top team. Activist campaigns also increased sharply versus 2024, putting extra scrutiny on strategy, capital allocation, and leadership, and prompting boards to question whether they have the right CFO for the company’s next chapter.

Retirement is playing a larger role in turnover as well. In the U.S., roughly half of exiting CFOs retired in 2024, rising to about 62% in 2025, supported by strong stock‑market performance and a desire for “planned exits.” Of those not retiring, around 45% moved into non‑CFO roles such as president, P&L leader, or CEO, reinforcing the CFO chair as a proven pathway to broader enterprise leadership, Barham says.

Despite the complexity, first‑time CFOs still dominate the pipeline, accounting for 57% of incoming global CFOs in 2025. At the same time, experienced CFO appointments rose to 135, the highest level in seven years and up 16% year over year, as boards seek leaders who can deliver impact quickly.

For aspiring CFOs, Barham and Roberts stress three priorities: seek candid feedback on readiness, take smart lateral moves into areas such as supply chain, M&A, or general management, and actively build board and external‑stakeholder exposure through investor relations, treasury, or strategic finance work.

One of the most striking findings is how unprepared many companies are for this level of churn. Only 16% of CFOs say their organization has a proactive succession plan, and fewer than one in five believe their company is as prepared as it should be. Some leading firms are now running multi‑year market scans two to three years before anticipated transitions, while others remain stuck in reactive, event‑triggered succession, leaving them exposed when change hits.

With continued complexity, elevated CEO turnover, activist pressure, and a potential uptick in IPOs expected into 2026 and 2027, CFO turnover is unlikely to ease, Barham says. And the influence and expectations attached to the role will only grow.

Sheryl [email protected]

Leaderboard

Rita Johnson-Greene was appointed CFO of Ocugen, Inc. (Nasdaq: OCGN), a biotechnology company. Johnson-Greene has more than 20 years of health care experience. She most recently served as chief operating officer at the Alliance for Regenerative Medicine. Before that, she was the VP of sales and qualified treatment centers at Genetix Biotherapeutics (formerly known as bluebird bio). Johnson-Greene also held senior leadership positions at Spark Therapeutics. 

Chelsea Pullano was appointed CFO of Greenwave Technology Solutions, Inc. (Nasdaq: GWAV), an operator of metal recycling facilities. Pullano has experience supporting public and private companies in accounting, financial reporting, and strategic finance. She co-founded MACK in May 2023, an accounting and advisory firm. Since May 2023, she has served as a partner and chief executive officer of MACK. Previously, Pullano served as CFO of Creatd, Inc., and director of finance at the law firm Lucosky Brookman LLP.

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Overheard

“I believe that we will see in the months ahead companies in all sectors proving that AI is not a speculative moment in time but a durable engine of transformation that’s fundamentally reshaping how we work.”

—Paul Hudson, CEO of Sanofi, writes in a Fortune opinion piece.