A CFO's path to CEO runs straight through their biggest blind spot |
A CFO's path to CEO runs straight through their biggest blind spot
Most CFOs hit a ceiling that has nothing to do with their financial record. New research names the skills that separate those who break through.
Nitat Termmee / Getty Images
A version of this article originally appeared in Quartz’s Leadership newsletter. Sign up here to get the latest leadership news and insights straight to your inbox.
Sunil Mathur of Siemens, Carol Tomé of UPS, and Murray Auchincloss of BP $BP each made the leap from CFO to CEO. They aren't outliers. Wharton data shows that 8.4% of current Fortune 500 and S&P 500 CEOs were promoted from the CFO position, up from 5.8% a decade ago. The trend line is moving in one direction. But the majority of CFOs still don't make that jump. The obstacle isn't ambition. It's the skills that got them there.
The role now demands more than finance. Between 2016 and 2021, the number of CFOs responsible for their organization's digital activities more than tripled, according to McKinsey. Investor relations followed the same trajectory. In 2016, 44% of CFOs said they managed it. By 2021, nearly 66% did. Neither digital oversight nor investor relations is a financial reporting task. Both require the kind........