Upfront: CFOs, Controllers Face Churn and Burnout

Soaring resignations are forcing companies to scout new talent as compliance and competition take their toll.

A study by global executive recruiting firm Russell Reynolds Associates of New York City shows that turnover among CFOs at Fortune 500 companies climbed 23 percent last year compared with 2003. In 2004, 16 percent of those companies changed CFOs, compared with 13 percent in 2003. While promotions and changes in responsibility account for some of the increase, resignations were a key factor. The proportion of departing CFOs who quit their job rose from 18.2 percent in 2003 to 22.2 percent last year. Resignations soared among controllers, from 1.7 percent of those changing jobs in 2003 to 6.8 percent in 2004.

"The increased and relentless pressures of Sarbanes-Oxley compliance and the competitive drive to beat the numbers every quarter are two factors driving rising turnover among financial officers," points out Lorraine Hack, a member of Russell Reynolds' financial officers practice. "Many CFOs and controllers rise to the occasion, but some decide to opt out of public company top roles too. Being a financial officer of a publicly-traded company has become more challenging and less attractive with compliance demands, so companies must keep scouting new talent."