CFO Turnover at Record High

Nearly half the CFOs at Fortune 500 and S&P 500 companies stay in their posts less than three years, according to a study by Crist Kolder Associates.

“It's pretty astounding,” Tom Kolder, president of Crist Kolder, told FinancialWeek. “That tells you that there's a real churn going on there.”

The average tenure for CFOs at most big companies is less than five years. With the credit crunch, housing downturn, and slowdown in consumer spending, it has been more difficult to maintain a company’s earnings and share prices.

CFO availability is also on the decline. A lot of would-be CFOs are being lured into private-equity jobs by higher pay and less regulatory compliance and exposure than public company positions.

Another factor is that when a new CEO is appointed, they often bring in a new CFO. When Robert Steel was named as Wachovia’s new CEO, CFO Thomas Wurtz said he would resign once a successor is named.

More CFO candidates are seeking the role of CEO. “What clients are looking for goes beyond financial expertise,” Kolder told FW. “It's someone with much broader business acumen, who can act as alter ego to the CEO. The war for that talent is only getting more intense.”