After five years of historically high CFO turnover, 2014 has seen reduced volatility in the senior finance ranks. While this may be partially due to the relatively stable performance of public companies over the past year, industry observers point out that the increased role of long-term compensation in executive pay plans may also play a part.
Among other trends: for the first time ever >10% of CFOs have investment banking backgrounds, showing the increased roles of M&A across the past year. Only 30% of CFOs have a public accounting background, and approximately 70% of recent CFO hires have come from inside the company (a sharp increase from recent years). In terms of future opportunity, the industrial sector and services companies are most likely to choose a CEO with CFO experience, while healthcare and consumer goods companies are least likely.
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