Crist Kolder Associates Releases Mid-Year Volatility Report 2024
Crist Kolder Associates has unveiled its Mid-Year Volatility Report 2024, a comprehensive study that tracks shifts and trends at the CEO, COO, CFO, and Board levels within top U.S. companies. Clem Johnson, President of Crist Kolder Associates, highlights the significant turnover among C-suite executives driven by various factors including inflation, changing consumer behaviors, geopolitical tensions, and election year uncertainties. This report sheds light on the evolving dynamics of executive leadership amidst these challenges.
- External Hiring of CFOs:
- The hiring of CFOs from outside organizations has reached its highest level in a decade.
- Companies are increasingly seeking external candidates to fill CFO positions, reflecting the broad mandates and challenges faced by modern CFOs.
- Promotion Trends:
- While the rate of CFOs being promoted to CEO roles dipped in the first half of 2024, the overall trend shows an upward trajectory.
- The movement from CFO to CEO has become more common, influenced by the expanding roles of CFOs.
- CFO Tenure:
- The average tenure of CFOs has decreased to 4.7 years, underscoring the dynamic nature of the role and the increased frequency of executive transitions.
- Diversity in Executive Roles:
- The percentage of female CEOs and CFOs has nearly doubled over the past decade.
- Ethnic and racial diversity among CFOs has nearly tripled, reflecting significant progress in executive representation.
Insights from Clem Johnson
Clem Johnson remarks on the impact of current economic and geopolitical conditions on executive turnover. The pressures faced by boards, including inflation and evolving workforce behaviors, have led to a heightened need for executives who can navigate through ambiguity. Notably, even established companies like Starbucks, Boeing, and 3M are turning to external CEOs to rejuvenate their leadership.
Crist Kolder Associates’ Mid-Year Volatility Report 2024 highlights the rapidly changing landscape of executive leadership. The report reveals significant trends such as the rise in external CFO hires, shifts in CFO-to-CEO promotions, and notable advancements in diversity at the top levels of corporate leadership. As organizations continue to face unprecedented challenges, executives with the ability to lead through change will remain highly sought after.