More big companies are searching for a CFO to eventually become CEO

Good morning.
Applying for a CFO job isn’t what it used to be. Big companies are now looking for finance chiefs who can potentially lead the organization.
“CEO succession is an important part of our client work and it is often a criterion when recruiting CFOs,” says Jaimee Eddington, regional leader of the Americas at Heidrick & Struggles, an executive search and leadership consulting firm. “Last year, our research found that 17% of North American CEOs previously held the role of CFO. This is also true of newly appointed board directors, where, among Fortune 500 companies in 2022, 18% had previous CFO experience, an increase from 14% the year prior.”
Clem Johnson, president of Crist Kolder Associates, an executive search firm, is also finding that it’s “more commonplace that CFO searches have an undercurrent of ‘CFO-plus’ with the ‘plus’ often hinging on CEO succession potential,” he says. “Given the extent to which the CFO role has elevated in strategic importance and expanded in scope, in many organizations, this person is the natural No.2.”
“Generally, we see data-centric business models as natural environments” where there can be a “shift from the finance realm” to a CFO then leading the organization, Johnson says. “Think financial services, telecom, and B2B technology,” he says.
Verizon, a major telecom company, is currently searching for a new CFO. The company is seeking a finance chief who could later transition to become a candidate for the next chief executive, according to the Wall Street Journal.
Johnson says the airline industry, which is consumer-centric and has high-transaction volumes, is another example. Delta Air Lines CEO Ed Bastian was previously CFO of the company, he says.
According to research by Crist Kolder Associates, in 2022, out of 679 S&P 500 and Fortune 500 companies, the percentage of CEOs coming from the CFO chair was 7.9%, the same percentage in 2021, but up from 6.6% in 2020.
Are CFOs consistently seeking the chief executive chair? “Often top financial officer talent is looking for broader roles than the CFO seat—CFO/COO or CFO-plus roles or roles that would position them for CEO,” Eddington says.
“We absolutely see a spike in the number of finance executives who will not contemplate making a move unless there is a CEO succession element to the opportunity,” Johnson says. They’ll tell him: “‘Why would I take the same role elsewhere unless my remit was dramatically expanded?’” he says.
Sheryl Estrada
sheryl.estrada@fortune.com
Big deal
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Going deeper
Navan (formerly TripActions), founded in 2015, a business-travel software startup with a private-market valuation of more than $9 billion, has incorporated ChatGPT in expense reports. The latest addition to its expense management offerings, Navan Connect (patent-pending), an all-in-one travel, corporate card, and expense management app, was announced on Monday. The company offers both a corporate card as well as a subscription to its software, but with Navan connect allows businesses to keep their existing corporate credit card provider, and the transactions would automatically show up in the expense management system, according to the company. Navan has partnered with Mastercard and Visa for the initial launch.
Leaderboard
David M. Oliver was promoted to EVP, CFO, and chief accounting officer at Chico’s FAS, Inc. (NYSE: CHS), effective June 24. Oliver is currently the company’s SVP of finance, controller, and chief accounting officer. He joined the company in 2012 serving in various financial leadership roles, including interim CFO and SVP and controller from February 2020 until September 2021. Before joining the company, Oliver held various finance roles with Supervalu Inc. a retail and wholesale grocery chain, such as CFO of supply chain services. He also served as an executive finance officer at the Arden Group, Inc. and The Vons Companies, Inc., both food supermarket retailers.
Yuri Biondo was named CFO for the Americas at Paysend, which provides an integrated global payment ecosystem. As a leader for Paysend’s U.S. business, Biondo will be based in Miami, and report directly to the Group CFO Wilhelm Rohde. Most recently, Biondo served as global corporate controller at Tribal Credit in Miami after a period as VP and controller for Latin America and the Caribbean for Visa. He is also a former Ernst & Young auditor and American Express executive. Biondo will help to drive the recently announced partnership between Paysend and TelevisaUnivision in the U.S. and Latin America.
Overheard
“With the S&P 500 rally now crossing the 20% threshold, more are declaring the bear market officially over. We respectfully disagree due to our 2023 earnings forecast. The bear is still alive.”
—Mike Wilson, a the Wall Street veteran, who is now Morgan Stanley’s chief investment officer and chief U.S. equity strategist, wrote in a Monday note, Fortune reported.