A new type of CFO is needed
Published: Wednesday, Dec 11th 2024, 16:10
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In 2024, a striking number of Swiss companies replaced their CFOs. They are also responding to the challenging economic situation: according to experts, this requires a new type of CFO.
Around one in four companies listed on the SIX stock exchange has appointed a new CFO this year, according to a data analysis by the news agency AWP. In total, companies have announced 50 CFO changes so far - around half more than in the previous year and by far the highest number in the last five years.
The departures also include some long-standing CFOs. Alois Schärli at Berner Kantonalbank and Laurent Vaucher at Villars Holding, for example, were in office for around 14 years. Matthias Gantner (Sensirion), Thomas Kaul (Intershop), George Quinn (Zurich Insurance), Ivo Wechsler (Huber+Suhner) and Marc Ziwica (DocMorris) also served for ten years or more.
There were also some changes among the SMI companies. In addition to Zurich, Nestlé, Givaudan, Swiss Life and Logitech also made new CFO appointments.
New requirements in times of crisis
Dirk Schäfer, lecturer in financial management at the University of St. Gallen, is not surprised by the many departures. "The frequent CFO changes are a symptom of an overarching development," he said in an interview with AWP.
The current economic environment with multiple crises requires a "different type of CFO". They must not just manage, but actively drive the transformation in difficult times.
The last few years have been characterized by numerous crises: Starting with the coronavirus pandemic, supply chain problems, high inflation, the strong franc and the current sluggish global economy.
In these times, many board members "go over the books and question the managers", says Schäfer. According to the motto: "Would I hire the same person again today?", the decision is often made against the incumbent CFO if the general conditions have changed significantly.
Different skills required
Depending on the situation a company finds itself in, a different type of CEO is required. According to Schäfer, financially troubled companies tend to require an "old-school" CFO who "keeps the money together and scrutinizes all costs". Companies that need to realign themselves or are facing increasing competition, on the other hand, require different skills.
Cooperation between the CFO and CEO is also important. While the CEO is responsible for the long-term visions and goals, the CFO has to see whether and how he can finance these ideas. "Companies are only successful in the long term if the CEO and CFO work well together," he said. They can certainly rub shoulders, but they must always pursue the same goal.
Finally, the digital transformation could also accelerate staff changes. According to Schäfer, it is becoming more important to communicate a lot with employees in order to take them along on the path of transformation. A CFO who only communicates with his subordinates by email is probably not the right choice.
Axpo CFO Harald Gauck recently confirmed the change in the role of a CFO in an interview with AWP. In his experience, the "role of the CFO has become more important and the tasks broader". In addition, more "communication and more crisis management have been added". According to him, risk management has also become more important.
Generational change brings new career models
According to Schäfer, a change in the way CFOs see themselves can also be observed in the medium to long term. With the generational change, traditional career models will tend to fade into the background.
Today, it can already be observed in some cases that CFOs are voluntarily withdrawing from the operational business in their mid-50s. In contrast to previous generations, the promotion from CFO to CEO is no longer necessarily a goal in many career plans, says Schäfer.
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