Spencer Stuart’s New Analysis Finds That Fortune 500 CFOs’ Tenures Are Shrinking

The average time a Fortune 500 CFO stays in the position is decreasing, according to a recent analysis by Spencer Stuart. This year, there have been notable departures and changes among high-profile CFOs, such as Christine McCarthy at Disney and Zachary Kirkhorn at Tesla. Spencer Stuart’s 2023 Fortune 500 C-suite Leadership Report reveals that, as of June 30, 2023, the average tenure for CFOs is 4.5 years, down from 4.6 years in 2022 and 4.9 years in 2018. There has been a 9% turnover in CFO positions in the Fortune 500 by mid-year 2023, compared to 7% the previous year.

In comparison, the average tenure for all C-suite executives is 4.6 years, up from 4.3 years in 2022. CEOs in the Fortune 500 have an average tenure of seven years. COOs, with an average tenure of three years, experience the highest turnover rate at 14% among the C-suite roles studied.

The report also highlights the increasing operational focus of CFOs, with some taking on the role of COO. Notably, CFOs are becoming more involved in operational aspects. Additionally, approximately 18% of CFOs in the Fortune 500 are women, higher than the CEO role (10%), and 11% of CFOs come from historically underrepresented racial and ethnic backgrounds.

Spencer Stuart’s analysis notes that about a third of CFOs in the Fortune 500 are external hires, while CIOs are the most likely to be external hires, with 57% coming from outside the company.