Chief financial officers are increasingly becoming candidates for the CEO role as their responsibilities expand beyond managing finances to include corporate strategy, capital allocation, technology investments and risk management, Fortune reports.
Toyota, ConocoPhillips, CME Group and Unilever are among the companies that have promoted finance chiefs to their top leadership positions. According to executive search firm Spencer Stuart, 21% of CEO appointments at Europe’s largest publicly traded companies last year were former CFOs, making finance the second-most common path to the top job, behind divisional leadership.
Artificial intelligence is accelerating the shift by automating routine financial tasks, placing greater value on CFOs’ strategic judgment, critical thinking and ability to evaluate business decisions. Companies are responding by broadening leadership development, rotating employees through different functions and emphasizing technology and change-management experience.
Executives say CFOs hoping to become effective CEOs must gain experience beyond finance, including operations, technology, mergers and acquisitions, and business transformation.
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