Historically, very few CFO’s rise to become CEO’s in the ASX200.
A key reason cited is the fact that CFO’s do not have a strategic view of the business as they are predominantly vested in reporting and stewardship. Most CFO’s will raise the issue that the significant increase in compliance and regulation has the potential to compound this view.
Perversely, I believe that the increase in regulation and compliance may be the best thing that has happened to CFO’s. To handle the change, we are seeing the rise of the Deputy CFO or financial controller, who is shouldering the traditional role of the CFO to report the numbers and ensure compliance. This is allowing CFO’s to become more involved in the strategist and catalyst roles across the organisation. This may just be the making of the CFO and enable more of them to rise to CEO ranks.