CEO and CFO count is escalating.
Big Bosses Shake Things Up - Significant Changes in Corporate Finance Departments
The year 2024 brought about a whirlwind of challenges: wars in Ukraine and Israel, political upheaval in multiple countries, and skyrocketing inflation. In such turbulent times, corporate leaders had their work cut out for them.
In the face of adversity, the business world also witnessed notable changes. For the first time, more than a quarter of the CEOs in Germany's top 40 companies (DAX) were women, according to an analysis by "Women on Supervisory Boards" (WoS).
Three Queens at the Dawn
The second half of the year saw an influx of female leaders at DAX companies. In October alone, three women took helm: Belén Garijo at Merck, Bettina Orlopp at Commerzbank, and Karin Rådström at Daimler Truck. Orlopp and her predecessor Manfred Knof continued to lead Commerzbank as a team until Orlopp took sole charge following Knof's departure.
Meanwhile, Karin Rådström made history as the third woman at the head of a DAX company. She replaced Martin Daum, who left the institution following a successful tenure.
Insiders Take Center Stage
These appointments were prime examples of companies prioritizing continuity in uncertain times by promoting from within their ranks. The same strategy was evident at Deutsche Börse, with Stephan Leithner taking charge from 2025 after serving as a co-leader since October.
BASF also opted for continuity, with Markus Kamieth taking the reins from his long-time colleague, Martin Brudermüller. Markus has been devoted to BASF for 25 years.
Shuffling the Deck
The finance departments also experienced music changes. At Daimler Truck, Eva Scherer took over the finance department, replacing Kristin Neumann, who decided to leave for personal reasons. Dagmar Steinert, the CFO of Rheinmetall, will also depart at the end of 2024, with Klaus Neumann set to take her place.
Zalando is looking for a new CFO after Sandra Dembeck decided to seek a fresh challenge elsewhere. Eon is undergoing internal reshuffling, with Patrick Lammers leaving and Marc Spieker stepping into the role of COO. Nadia Jakobi, who currently heads the trading business at Eon, will take charge of the finance department.
Brave New World
Hannover Re also experienced changes beyond the C-suite, with Christian Hermelingmeier assuming dual roles as CEO and CFO following the departure of Clemens Jungsthoefel.
Olaf Schick, Continental's CFO, opted to leave early to prepare for the spin-off, while Florian Funck, former CFO of Haniel, joined Sartorius as CFO in April 2024.
Amidst the unsteady waters of the 2024 business landscape, the increased turnover of CFOs emerges as a notable trend. While the attractiveness of board positions and retirement opportunities contribute to this movement, the pressures of investor activism, regulatory shifts, and supply chain disruptions also play significant roles.
These changes could potentially create challenges for DAX corporations, as short tenures may disrupt long-term financial strategies. Meanwhile, the talent crunch could lead to heightened competition for external hires and potentially inflated compensation. Understanding these trends is crucial for DAX companies looking to navigate the triumphs and trials of the modern business world.
Written by Anna Perucki, Frankfurt
Insights:
- Reason for CFO Turnover: Pressures from investor activism, inflation, supply chain disruptions, and regulatory shifts, as well as CEO transitions and retirements or board opportunities, are increasingly shortening CFO tenures.
- Impact on Corporate Decision-Making: High CFO turnover rates could lead to a fragmentation of long-term financial strategies and erosion of investor confidence, especially during crises. External hires may require onboarding time to make critical decisions, while internal promotions might lack cross-industry expertise.
- The increased turnover of CFOs in DAX corporations is a significant trend, driven by pressures from investor activism, inflation, supply chain disruptions, and regulatory shifts, as well as CEO transitions and retirement opportunities.
- High CFO turnover rates could potentially disrupt long-term financial strategies and erode investor confidence, especially during crises, as short tenures may be required to manage challenges like the ones experienced in 2024.
- External hires for CFO positions might necessitate onboarding time before being able to make critical decisions, while internal promotions could lack cross-industry expertise.
- Understanding these trends is vital for DAX companies aiming to navigate the triumphs and trials of the modern business world, as it can help them address challenges posed by CFO turnover and compete for talent in the face of a talent crunch.
