HR’s Role in Solving the CFO Succession Challenge

The CFO role has never been more critical or more difficult to fill.

According to new research from Robert Walters, a global talent advisory and recruitment specialist operating across 29 countries, the average tenure of a UK CFO is now just under three years, while turnover rates remain at record highs. Drawing on insights from 500 business leaders, the firm’s latest data highlights a structural shift in the finance talent market — one that is being driven by shrinking pipelines, evolving skill demands, and changing leadership expectations.

This is no longer a temporary hiring challenge. It is a long-term talent reset.

A shrinking pipeline at the top

One of the most persistent drivers of the CFO shortage is upward mobility.

More than a third (34%) of UK business leaders say CFOs moving into CEO roles is a key contributor to the gap. This reflects a broader trend also identified by McKinsey & Company, which has noted the increasing “CEO readiness” of CFOs due to their enterprise-wide visibility and capital allocation expertise.

But while this progression signals the strategic value of finance leaders, it creates a vacuum beneath them.

At the same time, the profile of the modern CEO is shifting. The importance of a financial background has dropped significantly, while technology and operational experience are rising. This creates a paradox: CFOs are still moving up, but fewer future CEOs are coming through finance, weakening the long-term pipeline.

Early exits are accelerating the gap

If promotions are draining the top, early exits are hollowing out the middle.

A growing share of business leaders (42%) now cite retirements and ageing leadership as the biggest threat to CFO availability. This aligns with findings from Deloitte, whose 2026 Finance Trends report highlights mounting concerns around succession fragility and leadership continuity.

The issue is compounded by a weakening mid-tier.

Historically, this layer produced the next generation of CFOs. Today, it is:

• Smaller
• Less experienced
• Increasingly diverted into transformation and project roles

The result is a broken pipeline — fewer ready-now candidates at exactly the moment demand is rising.

The role is evolving faster than the talent pool

Even as supply tightens, expectations are expanding rapidly.

Today’s CFO is expected to operate as:

• A strategic partner to the CEO
• A driver of enterprise performance
• A leader of digital and AI transformation
• A custodian of trust, governance, and risk

Robert Walters’ data shows the most critical capabilities for 2026 are:

• Strategic leadership (38%)
• Business insight (35%)
• Digital literacy (32%)

Most strikingly, demand for AI capability has surged by 69% year-on-year.

This mirrors wider research from Gartner, which has found that CFOs are increasingly expected to lead enterprise-wide data and technology investment decisions, not just finance transformation.

The implication is clear: the CFO is no longer just a finance role. It is a hybrid leadership position — and the talent pipeline has not caught up.

Rethinking the CFO profile

To address this gap, organisations are widening their search criteria.

• 35% of finance leaders are open to non-traditional candidates
• 28% are considering talent from adjacent functions

This reflects a growing shift toward skills-based hiring, also highlighted by World Economic Forum, which has emphasised the need for cross-functional leadership capabilities in future C-suite roles.

The next generation of CFOs may not come solely from traditional finance ladders. Instead, they may emerge from:

• Strategy and transformation
• Technology and data
• Commercial or operational leadership

Compensation is rising, but so is mobility

As competition intensifies, compensation is rising sharply.

• Average CFO salaries in London now exceed £350k
• Banking and financial services roles reach up to £364k
• Equity, bonuses, and flexible structures are becoming standard

At the same time, CFOs are more mobile than ever. 13% have changed roles in the past year, reflecting a candidate-driven market.

Interim and fractional roles are also gaining traction, offering flexibility for candidates and faster access to leadership for organisations.

A narrowing path to leadership

The CFO talent crunch is not just about hiring difficulty.

It is about misalignment between role expectations and talent supply.

The path to CFO is narrowing at the same time as the role itself is expanding. Without intervention, organisations risk:

• Leadership gaps at critical moments
• Overstretched finance teams
• Slower strategic decision-making

How HR can help widen the pipeline

Solving the CFO talent crunch will require a more proactive, long-term approach and HR has a central role to play.

Leading organisations are already shifting towards:

1. Building earlier succession pipelines
Identifying high-potential finance talent earlier and giving them exposure to strategy, technology, and commercial decision-making.

2. Expanding development pathways
Creating rotational roles across finance, operations, and digital teams to build broader leadership capability.

3. Supporting internal mobility
Encouraging lateral moves into transformation, data, and business leadership roles, not just vertical progression.

4. Redefining “readiness”
Moving away from rigid experience requirements and focusing on capability, adaptability, and leadership potential.

5. Investing in leadership branding
Positioning internal finance leaders as strategic voices through thought leadership, visibility, and cross-functional influence.

The CFO talent crunch is not a short-term disruption. It is the result of structural shifts in leadership, skills, and workforce dynamics.

As expectations of the role continue to expand, the organisations that succeed will be those that:

• Build broader, more flexible pipelines
• Invest earlier in leadership development
• And rethink what a modern CFO truly looks like

HRD Connect Curators of the New Business Landscape. HRD Connect produces industry-recognized content for senior HR leaders. Through articles, case studies, Q&As, podcasts, events, and more, we offer truly progressive and cutting-edge insights designed to help people leaders address core HR challenges and add greater value to their business.

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