Companies are lacking in CFO succession.
Companies are lacking in CFO succession.
The Importance of CFO Succession Planning

CEOs and CFOs have long been regarded as strategic partners within companies. But while CEO succession planning is a well-established practice, the same cannot always be said for CFOs. Recent transitions at ANBLE 500 companies have highlighted the importance of having a succession plan in place for the CFO role as well.
Take, for example, Uber Technologies. In their Q2 2023 earnings report, they announced that their CFO, Nelson Chai, would be leaving the company on January 5, 2024. A search for his replacement is currently underway. Similarly, Alphabet recently promoted their CFO, Ruth Porat, to the newly created position of president and chief investment officer. While a successor has yet to be named, Porat will continue as CFO while Google searches for the next finance chief. It’s worth noting that Porat has a track record of bringing in former CFOs of public companies, demonstrating the importance of experience in this role.
Chewy, Inc., an online retailer of pet products, also experienced a CFO transition. Their CFO, Mario Marte, retired from the company in July 2023. In the interim, Stacy Bowman, the chief accounting officer, has been appointed as the acting CFO while the company searches for a permanent replacement. Additionally, The Walt Disney Company announced that their CFO, Christine McCarthy, would be stepping down and taking a family medical leave of absence. Kevin Lansberry, the EVP and CFO of Disney Parks, experiences, and products, has assumed the role of interim CFO while the search for a long-term successor takes place.
When approached for comment about their CFO succession planning process, these companies provided no further information beyond the initial announcements. However, industry experts weigh in on the challenges and considerations involved in selecting a CFO successor.
“In today’s incredibly dynamic landscape, experienced CFOs have unprecedented leverage and options,” says Clem Johnson, president of executive search firm Crist Kolder Associates. Choosing a successor for this role is particularly tricky, as unforeseen circumstances can force a CFO change outside the original succession timeline. Internal successors may struggle to handle the spotlight, or the chemistry with the CEO and former CFO may not align. In some cases, an interim CFO may be appointed to ensure the company explores all available alternatives.
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Jeff Constable, who leads Korn Ferry’s Financial Officers Practice, underscores the importance of a robust succession process for CFOs. This process typically includes scanning the external market and potentially recruiting specific individuals. Recent CFO announcements across larger companies demonstrate a mix of both external candidate hires and internal candidate promotions. Ultimately, the timing of naming a successor varies, but most companies aim to identify someone at least four to six months before the actual transition occurs.
Constable also highlights the significance of CEO succession in the broader context of the C-suite. As the CEO serves as the top leader, succession planning often starts with their position and cascades down to other C-suite roles. This focus on CEO succession acknowledges that the rest of the C-suite members report directly to the CEO.

In other news, Morgan Stanley’s E-Trade released data from its monthly sector rotation study. The top three sectors in June and July were information technology, consumer discretionary, and communication services. This indicates traders gravitating towards big names in tech and communications services, like NVDA, AMZN, GOOG, and NFLX. The shift towards riskier sectors, combined with selling in defensive sectors like consumer staples and healthcare, suggests a continued preference for a risk-on approach.
Additionally, a special series of Wharton’s Ripple Effect podcast explores the research and latest business books of leading Wharton faculty authors. Professor Mauro Guillén emphasizes the need to close the generational gap and move past harmful generational labels.
In terms of CFO appointments, Jami Rubin has been named CFO at Boundless Bio, a clinical-stage oncology company. Rubin brings over 30 years of leadership experience in the biopharma industry, including her role as CFO of EQRx, where she led the organization through a successful go-public process. Tim Stone has been named CFO at Farfetch Limited, a global platform for the luxury fashion industry. Stone’s extensive finance background spans over 20 years, including roles as CFO for Amazon.com’s AWS, Devices, and Digital Content businesses, as well as CFO for Ford Motor Company.
Finally, Rachel Sederberg, a senior ANBLE at labor analytics firm Lightcast, commented on the direction of the labor market. While employment openings decreased slightly in June, the market is still heading in a positive direction. Sederberg highlights the need for continued progress and calmness in the labor market recovery.
In conclusion, the recent CFO transitions at major companies emphasize the importance of comprehensive CFO succession planning. While the process can be challenging, it is necessary to ensure a smooth transition and maintain strong leadership within the organization. The dynamic nature of the business landscape and the leverage and options available to experienced CFOs underscore the need for a robust succession process. By giving due attention to CFO succession planning, companies can navigate leadership changes effectively and position themselves for future success.