In High Demand, CFOs Offered Larger Roles to Keep Them Onboard

In a bid to retain top talent ahead of a potential recession, some companies are giving chief financial officers more responsibilities, The Wall Street Journal reported Monday (July 4).

The report noted that as demand for CFOs increases, some companies are also elevating CFOs’ positions.

U.S. businesses are facing volatile stock markets, high levels of inflation and higher interest rates, which have led to a high amount of turnover for CFOs — an 18% rise in turnover from the S&P 500 in the last year, as opposed to 15% last year, per the report.

However, companies are looking to retain executive talent to help them manage their business through a possible economic downturn. The report said companies have been viewing CFOs as second or third in command, responsible for various financial and strategic decisions such as dealmaking, supply chain matters and more.

This has seen around 6% of CFOs on the S&P 500 have increased responsibilities as of June 29. Additionally, of 30 financial chiefs, nine of them had more operational duties than they’d had before.

The increase in expectation has added some pressure for companies to be able to retain their CFOs, who could be instrumental in managing the business through difficult economic environments — much as CFOs did when navigating the early stages of the pandemic.

When interviewed for the PYMNTS series “A Day in the Life of a Digital-First CFO,” several CFOs said the position’s responsibilities have grown in recent years, extending into wider business decisions and even technology choices.

See also: Voices of the CFO: Finance Leaders Flex With Strategic Demands

“The CFO has to wear many hats, and oftentimes that includes areas outside of traditional accounting and finance, and into things such as human resources,” said Alok Bhushan, CFO of Virta Health. “It’s all about understanding where to add value and get that return on investment, so you can work out how to best invest in the company’s growth.”