The growing job responsibilities of CFOs are a global trend, according to new data that shows 82% of finance leaders have seen their responsibilities increase in the past five years. The survey, conducted by leadership advisory Egon Zehnder of 600 finance leaders from around the globe, found CFOs have seen more responsibility around environmental, social, and governance (55%), mergers and acquisitions (44%), corporate strategy (38%), and risk management (36%).
Many CFOs, however, are resistant to continuing to work on ESG-related projects, at least according to the Egon Zehnder survey. Arguably misguided, misused, and politicized, ESG is an area finance leaders in certain industries believe should be excluded from their list of responsibilities.
Nearly two-thirds (62%) of industrial CFOs, who are presumably dealing more with environmental and sustainability initiatives, said they believe ESG shouldn’t be their responsibility. Nearly 6 in 10 (57%) of technology and communication CFOs say the same. In the consumer-based industry, some of whom are the biggest perpetrators of pollution and CO2 emissions, more than half (52%) of the CFOs want nothing to do with ESG compliance.
A CFO’s Most Valuable Team Member
As demands for CFOs’ time increases, CFOs are relying on their internal finance team members for help. When asked who their most valuable team members were, 57% said the head of FP&A. Nearly half (49%) named their controller/chief accounting officer (CAO) as well.
From a global perspective, one interesting finding is that North American CFOs were much more likely (67%) to rely on their CAOs. No other region came close to that figure, with the next-most reliant on CAOs being CFOs in Asia/Asia Pacific markets.
Financial services companies were much less likely to be reliant on their CAOs (36% indicated so), compared with around 50% and higher for every other industry surveyed.
The combination of increasing workloads, greater demands, and shallow talent pools means there are many job opportunities for CFOs that want to switch companies. With some of the highest turnover rates in the C-suite, CFOs that are highly capable but don’t like their situation, regardless of the reason, can and will likely leave if an opportunity arises.
While 43% of CFOs say they are seeing poaching attempts from interested parties more often, the cadence of these inquiries varies. Over a fifth (21%) of services-based CFOs said they are contacted about a new opportunity weekly. Nearly half (49%) of pharmaceutical CFOs said they are approached monthly. Over half (55%) of consumer-based CFOs are approached every few months.
More money and better hours aren’t the reason why most CFOs leave, however. Six in 10 (60%) said the quality of the executive team was their determining factor, alongside company growth prospects (45%) and a broader job mandate (34%). Only a third (33%) named compensation as a top-three factor.