What was the landscape for CFOs in 2024 in the UK?
In 2024, the landscape for Chief Financial Officers (CFOs) in the UK reflects significant shifts in corporate expectations, compensation, and career trajectories. These changes are indicative of broader trends in the business environment, including economic volatility, technological advancements, and evolving leadership dynamics. This piece explores the themes shaping the CFO role, including high turnover rates, increased demand for experienced professionals, rising salaries, career progression trends, and the impact of artificial intelligence (AI).
CFO turnover in the UK has reached unprecedented levels in 2024, particularly within the FTSE 100. In the first three quarters of the year, turnover climbed to 21%, a marked increase compared to previous years. Tough economic conditions have placed immense pressure on CFOs, leading to a higher rate of burnout and transitions. Boards and shareholders are demanding quick results, and when expectations are not met, leadership changes often follow. This turnover trend creates both challenges and opportunities, as companies must balance the disruption caused by leadership changes with the potential to infuse new perspectives into their financial strategies.
In this competitive and high-pressure environment, organisations are increasingly prioritising candidates with proven track records. The demand for experienced CFOs who can navigate complex financial landscapes, implement robust strategies, and align financial goals with corporate objectives has never been higher.
This emphasis on experience extends across industries, as companies seek leaders who can provide stability and vision amidst uncertainty. Experienced CFOs are valued for their ability to balance short-term financial performance with long-term growth initiatives, a skill set that is particularly critical in industries facing rapid change, such as technology and retail.
The heightened demand for top-tier financial leaders has driven a significant increase in CFO salaries in the UK. In London, earnings for CFOs in 2024 have risen to between £190,000 and £300,000, reflecting both the scarcity of qualified candidates and the growing complexity of the role.
Beyond base salaries, CFOs are often compensated with performance bonuses, stock options, and other incentives, aligning their financial rewards with company success. This compensation growth underscores the strategic importance of CFOs and the recognition of their expanding responsibilities. However, rising salaries also put pressure on organisations to ensure that their CFO appointments yield tangible returns, further intensifying the focus on experience and proven capabilities.
One of the most notable trends in 2024 is the growing number of CFOs transitioning into CEO or president roles. This shift reflects the evolving perception of CFOs as not only financial stewards but also strategic visionaries capable of leading entire organisations.
Recent examples illustrate this trend. In the FTSE 100, several companies have appointed former CFOs as their CEOs, citing their deep understanding of the business and ability to manage complex stakeholder relationships as key factors in their promotions. This progression highlights the versatility of CFOs and their readiness to take on broader leadership roles.
The transition from CFO to CEO often requires a shift in focus from detailed financial management to overarching strategic leadership. However, the skills developed as a CFO—including data-driven decision-making, risk assessment, and financial acumen—serve as a solid foundation for this transition.
As artificial intelligence continues to revolutionise industries, CFOs in the UK are at the forefront of integrating this transformative technology into their operations. AI is poised to become a dominant force in business, reshaping processes such as financial forecasting, risk management, and operational efficiency.
CFOs are preparing for AI adoption by investing in advanced analytics tools, upskilling their teams, and collaborating with technology leaders within their organisations. AI’s ability to process vast amounts of data in real time enables CFOs to make more informed and agile decisions. For example, predictive analytics powered by AI can identify trends and anomalies that might otherwise go unnoticed, giving companies a competitive edge.
Moreover, CFOs are mindful of the ethical considerations and potential risks associated with AI. Ensuring transparency, accuracy, and accountability in AI-driven decisions is a priority, as stakeholders demand responsible use of this powerful technology.
The landscape for CFOs in the UK in 2024 is defined by rapid change and evolving expectations. High turnover rates, reflecting the growing pressures on financial leaders, while increased demand for experienced professionals and rising salaries underscore the strategic importance of the CFO role. Additionally, the trend of CFOs moving into CEO positions highlights the expanding scope of their influence, and the integration of AI into financial operations signals a new era of innovation and efficiency.
As the role of the CFO continues to evolve, those who can adapt to these challenges and seize emerging opportunities will not only shape the future of their organisations but also redefine the boundaries of financial leadership.
At Partner Group, we worked with and placed several CFOs in 2024, and these themes were a constant in our discussions with them and placing them. In particular, the pertinence of those who have a proven track record in digital transformation and those who understand how to best harness trends in AI stood out. But there was also clamour for individuals who could best demonstrate a strong track record in a difficult external environment given the tough economic conditions in the UK and the challenges the Budget presented for businesses.
