According to Gloucestershire specialist recruitment consultancy, Seymour John, an increasing number of people working as finance chiefs are being promoted to CEOs — with an estimated 60 per cent of FTSE 100 CEOs having backgrounds in finance and accountancy.
So what makes these finance directors stand out as potential CEOs of their firms?
Emma Hughes, an associate director at Seymour John, said: 'Traditionally, when times are tough, finance directors rise to the top with organisations inevitably looking to the finance function to take the lead.
'Against a backdrop of inflation, geopolitical conflict, supply chain disruption, talent gaps and the energy and cost-of-living crises, cashflow and cost control have become crucial.'
Finance directors — also known as chief finance officers or CFOs — tend to be more than just experts in their own field, says Seymour John, developing skills and responsibilities that allow them to master other strategic roles across their organisations, too.
'The best not only devise the strategy, they execute it, too. This inevitably means guiding and collaborating with other areas of the business.'
There's still work to be done on gender equality and ethnic minority representation at senior board level, with current figures showing that in FTSE 100 companies, only nine percent of women are CFOs, while only 10 per cent are CEOs. However, research has found that 45 per cent of chartered and certified accountants are female.
Simon Lowe, a director at Seymour John, says: 'Figures show that 12 per cent of current FTSE 100 CEOs are from ethnic minority backgrounds, which does represent some progress.'
But the bottom line is that 'boards are looking for nimble, operationally focused, strategic thinkers who can collaborate across the whole of an organisation, whether it's to lead streamlining and restructuring; expansion into new markets; the roll out of new products and services; mergers and acquisitions; or the adoption of new technologies.
Emma continues: 'These individuals will also have the creativity, vision and communication skills to drive change and transformation. More often than not, for the top, top jobs, the successful applicants have moved nimbly between finance, administration, general management and operations, quite often in several different organisations, before being appointed.
'In a climate where many organisations are looking to promote from within, beyond developing a strategic and commercial mindset, aspiring CEOs should be encouraged to build networks and contacts across the business, particularly at board level.
'We would recommend making a plan, one that includes personal and professional development through coaching, mentoring and, where appropriate, gaining wider business qualifications.'
