Organisation : Half Of CFOs Who Leave Companies Exit For Reasons Other Than A New Job
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Fifty percent of the chief financial officers who left companies did so for reasons other than finding another job, including inability to fit culturally into the organization, the increasingly stressful demands of the position, and lack of current knowledge related to Sarbanes-Oxley, according to a survey by Right Management.
CFOs lasted in their positions for more than five years at 48 percent of the 191 organizations surveyed. However, CFOs stayed in their jobs for less than three years at 25 percent of companies surveyed.
It typically takes between three and five months to replace a departing chief financial executive, according to the survey.
Respondents included primarily human resource managers and executives at mid- to large organizations in all industries.
“Many chief financial officers had the same ‘cultural fit’ problems that are a leading cause of executive failure – their management styles and ways of doing their jobs did not fit in with the prevailing organizational culture,” said Doug Matthews, President and Chief Operating Officer for Right Management, the world's leading provider of integrated consulting solutions across the employment lifecycle.
CFOs have also been under increased job stress since the implementation of the Sarbanes-Oxley Act of 2002, the corporate disclosure law passed by Congress in the wake of accounting scandals at a number of major publicly held companies. “The strains that Sarbanes-Oxley placed on the job are still present. Some CFOs have not adjusted to the greater duties and increased responsibilities that a chief financial executive for a public company must now confront,” said Matthews.
“In addition, the job market for CFOs has been good in recent years, with new opportunities at other public companies that are under greater Sarbanes-Oxley scrutiny, and with privately held companies that were not affected by the legislation,” added Matthews.
According to the survey, CFOs who left companies did so for the following reasons:
Accepted another job offer 50 percent
CFO did not fit into culture of organization 23 percent
Work environment and/or job was too stressful 22 percent
Lack of current knowledge around Sarbanes-Oxley regulations 5 percent
The average tenure of a CFO is:
Six to 10 years 28 percent
Three to five years 27 percent
Up to three years 25 percent
More than 10 years 20 percent
It typically takes this long to find a replacement CFO:
Three to five months 34 percent
Six to 12 months 26 percent
One to two months 22 percent
Less than one month 11 percent
More than 1 year 7 percent
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