The social reformer John Ruskin said at the beginning of the Industrial Revolution: “In order that people may be happy in their work, these three things are needed: they must be fit for it, they must not do too much of it and they must have a sense of success in it.”
Finance leaders, it appears, are failing to meet any of these criteria: they are stressed out, overworked and fed up.
That’s according to a recent poll of more than 1,000 UK finance decision-makers by Iplicit, a software firm. The research found that almost every respondent (93%) works more hours than their contract specifies. Worse still, 40% report feeling stressed at work “most of the time”.
Insufficient staff resources to meet the organisations’ needs was cited as a top reason for stress, followed by budget constraints and the excessive amount of time it takes to create reports, such as audits or year-end accounts. Other sources of daily stress include team management, fraud and security threats, and board reporting obligations, according to the report.
Another study suggests that CFOs are beginning to question whether the job is still worth it. The latest Global CFO Turnover Index by Russell Reynolds Associates, a management consultancy, shows that finance chiefs are jumping ship at record rates. In 2024, 25 FTSE 100 companies appointed new CFOs and more than half of FTSE 100 finance leaders have transitioned away from the CFO role in the past two years.
Globally, the average tenure of a finance chief is 5.8 years – down from 6.2 years in 2023. And over half (54%) of outgoing CFOs this year either retired or moved to board positions – the highest level in six years. This underscores both the intensity and volatility of the CFO role.
But CFOs burning the midnight oil is nothing new – the role has always been demanding. So why are so many now deciding to throw in the towel?
Everything everywhere all at once
What’s unique about the current situation is that various stressors are all rising at once. Not only are the daily demands of the role growing, but so are the number of external threats CFOs must respond to.
The job is no longer as neatly defined as it once was, having expanded far beyond balancing the books and managing spreadsheets. CFOs are expected to make informed decisions on everything from a company’s climate strategy and cyber defences to supply chain resilience and AI integration. The broader remit means CFOs have inherited responsibility for many new regulatory obligations.
It also means increased scrutiny from stakeholders. Boards are quicker to pounce on poor performance, dispensing with leadership they believe are incapable of managing the challenges. Finance chiefs have found themselves under the microscope, with stock performance now closely tied to their actions and reputation. Last month, for instance, Wood Group’s CFO was forced to resign after a misstatement of his work experience led to a 40% drop in the company’s share value.
A general dip in valuations over the past 12 months has increased the pressure on CFOs to resuscitate share prices. This in turn has fuelled the rise of activist investors, who are generally more demanding of their executive team. More UK companies were targeted by activism in 2024 than in any other European country, according to data by Alvarez & Marsal, a management consultant.
Macroeconomic problems are also causing headaches for CFOs. In the UK, the Labour government’s employment reforms have led to higher staffing costs and uncertainty surrounding President Donald Trump’s tariffs means many firms are struggling to move forward with their business plans.
Unprecedented uncertainty
In his annual letter to shareholders, Larry Fink, the chief executive of Blackrock, one of the world’s biggest investment fund managers, described the widespread alarm gripping finance professionals today. He said “nearly every client, nearly every leader” he had spoken to was “more anxious about the economy than any time in recent memory”. Finance chiefs face growing pressure to deliver clarity at a time of great macroeconomic uncertainty.
With all this to shoulder, it is little wonder that CFOs aren’t sticking to the job for long, choosing instead to take on more comfortable board roles or head for early retirement. This is a problem for organisations, as it creates mounting succession pressures at a time when capable CFOs matter more than ever before.
The social reformer John Ruskin said at the beginning of the Industrial Revolution: “In order that people may be happy in their work, these three things are needed: they must be fit for it, they must not do too much of it and they must have a sense of success in it."
Finance leaders, it appears, are failing to meet any of these criteria: they are stressed out, overworked and fed up.
That’s according to a recent poll of more than 1,000 UK finance decision-makers by Iplicit, a software firm. The research found that almost every respondent (93%) works more hours than their contract specifies. Worse still, 40% report feeling stressed at work "most of the time".
