Corporate hierarchy used to be very rigid.
The CFO and CEO had their distinct corners, and there was little overlap – the former dealt with financial health while the latter set direction. Yet in an era of volatility and business models being disrupted daily, a CFO is now increasingly seen as credible successors to the CEO.
The New CEO
This transition from technical mastery (finance) to visionary leadership (executive) is still a significant one, though.
The CristKolder Volatility Report, published this year, looked at internal promotions at Fortune 500 and S&P 500 companies. The Report found that over 50% of CEOs were promoted from COO or president positions, while CFO-to-CEO promotions were less common.
In 2015, 6.5% of CEOs were promoted from the CFO position, with that number rising to 7.5% in 2025 (with a peak of 8.4% in 2023).
This shows that for the individual CFO, there is clearly a lot to prove, but it’s far from impossible. The route from CFO to CEO is an attractive one, that will become more common going forward, yet CFOs will have to adapt their thinking and skills to position themselves in the best possible way to make such a transition.
Why CFO is a Strong Route to CEO?
To be successful in making the move, a CFO needs to grow beyond financial leadership and establish the kind of influence that touches every part of the business. It demands a shift in thinking.
Yet there is good reason why many boards favour CFOs for the top job. In times of economic uncertainty, it’s clear that financial stewardship is a must-have skill. For an organisation to survive, a high level of accountability and good governance must be in place. These are all skills the CFO brings to the job.
Strategy has also changed. Today, it relies increasingly on data, using performance insights to inform business decisions. This, of course, is often driven by finance teams. As is the drive to link profit with responsibility – today, CFOs play a critical role in linking CSR to financial results.
Adaptation is Key
To make the move from finance to the CEO seat, CFOs need to reconsider how they lead. This doesn’t mean throwing out everything that they know, but it requires a certain level of adaptation.
For a finance leader, shifting from ‘protecting’ to ‘creating’ is perhaps the most difficult move, as it can feel counterintuitive for a leader accustomed to risk mitigation. A CFO may start by thinking about how they can prevent downside, while the CEO embraces calculated risk to unlock new opportunities.
A CEO must mobilise their workforce on an emotional level, which means going beyond the technical. CFOs may feel that data suffices, while CEOs are under pressure to tell stories about the future. This ties in with the need to communicate throughout the organisation.
It’s true that numbers influence decisions, but it’s stories that bring everyone on board with the vision. A good CEO can articulate a clear direction and speak with confidence to a wide variety of people, from employees and customers to government agencies and the media.
Early Experience
CFOs who successfully transition are those who step beyond finance early in their career, pursuing projects and roles where they can influence growth and operations. They no longer think about the business solely through the lens of financial outcomes, instead viewing the entire company, encompassing product, technology, talent, and brand.
Ultimately, the CFO may have to rely on a higher level of ambiguity than they are used to when they assume the CEO role. Business leaders often have to make decisions without complete information and simply use their best judgment.
This takes a high level of confidence but is a necessary aspect of leading the entire organisation.
Practical Experience
Let’s look at some of the practical experience a CFO should have in place before looking for the CEO role:
This is not to minimise the importance of soft skills. The successful CEO possesses emotional intelligence and humility, so CFOs who thrive in the top job understand that people respond to leaders who can convey a sense of a bigger purpose beyond the day-to-day role each person may have within the business.
Importance of Being Proactive
CFOs sometimes struggle to break free from the perception that they are ‘the numbers person.’
It’s down to the individual finance leader to demonstrate, through past experience as well as the hard and soft skills, that they can move beyond finance.
Being proactive is key. The most effective CFOs advocate for opportunities and never wait for succession. Building relationships, across investors, customers, and internal leaders is key.
The CFO-to-CEO path is about reinvention. It’s about taking past experience and refocusing it on the job at hand. This mindset shift might be the most difficult but also the most critical aspect of the transition.
The Pipeline of CFOs to CEOs
Business models are evolving to focus more on digital technology. This shift requires greater investment, and it comes with a requirement to serve a clear purpose beyond profit alone.
CFOs are increasingly involved in shaping the strategy around these critical changes, going beyond budgeting to help define where future value will be created. Today, the CFO is a natural successor to the CEO than ever before.
It’s likely that in the coming years, more CFOs will reach that top job – particularly in companies which are undergoing transformation. The CFO has the opportunity to become a CEO who can balance financial impact with innovation and resilience.
Ultimately, a CFO considering the leap can’t wait around. They need to be proactive and gain the necessary experience long before any succession opportunities arise.
This approach, along with a growth mindset, puts any future CEO in the best possible position to thrive at the top.
NOTE: This article was written by Jigar Sagar; an entrepreneur, investor and government advisor with over 31 ventures valued at a combined $350M. He is based in Dubai and is the Founder of Triliv.
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