Kate O'Sullivan, CFO.com | US
October 11, 2007

Controllers Chances

Thanks for your comment, Maureen. To follow up on Kate O'Sullivan's response with the actual numbers, Korn/Ferry found that only 4 percent of CFOs hired from outside the company were controllers in their previous job. By contrast, among the 310 big companies that promoted insiders to the chief financial officer spot, 33 percent chose to promote their controllers. Indeed, in the article, recruiter Chuck Eldridge pointed out that this demonstrated strong succession planning in those companies.

Posted by Tim Reason | Oct 23, 2007 4:50 PM ET

The controller question

Hi Maureen,

Thanks for your comment. We do hear mixed things about the controller's likelihood of becoming CFO. I think one issue in the study we cited in the earlier article is that Korn/Ferry was looking at Fortune 500 companies, which are more likely to be looking for a sitting CFO. They were also looking at those who were hired from the outside, rather than those who are promoted from within. I think in smaller or mid-sized companies, and even some large companies (see my upcoming article on succession planning in the November issue), the controller can have a good shot. The key is proving that he or she has a well-rounded view of the business and can be a strategic thinker, not just a numbers-cruncher.

Posted by Kate OSullivan | Oct 23, 2007 4:38 PM ET

CFO Selection

Doesn;t this fly in the face of your Reader's Choice article "CFO Wanted: Controller Need Not Apply" March 19/07? That study indicated that the Contrller is not the usual choice for CFO (less an 4% - seee bleow).

"New research shows that as of April 2006, the number of Fortune 500 CFOs hired from outside of their new companies total 190. While 58 percent were plucked from the ranks of existing corporate or divisional CFOs, a paltry 4 percent were sitting controllers."

Posted by Maureen Watt | Oct 23, 2007 4:17 PM ET