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Good morning. The first half of 2025 brought some unexpected shifts in the ranks of Fortune 500 CFOs.
“The CFO market is still quite hot,” said Kirby Perkins, managing director at executive search firm Crist Kolder Associates.
However, there’s a dramatic swing toward internal promotions for CFOs, with external hiring of finance chiefs down almost 50%. Data from the firm’s summer 2025 Volatility Report, shared with CFO Daily, which covers data from 667 Fortune 500 and S&P 500 companies, highlights this trend.
Through July 31, only 28% of CFOs were hired externally—a stark contrast to last year’s 10-year high, when 47% of CFO turnovers were filled by candidates from outside the organization.
“This year, we’ve seen the lowest level in a 10-year stretch,” Perkins said.
She explained that, over the past three years, roughly 65% to 75% of all CFO turnovers typically occur by midyear. Based on this pattern, external hires this year are set to come in below average unless there is a much higher number of CFO turnovers during the rest of 2025.
The rise of specialized C-suite roles is creating fresh opportunities for internal promotion, especially as these new positions often require deep knowledge of company operations and strategy, according to Deloitte research.
A recent example of an internal hire: In April, Lockheed Martin promoted Evan Scott to CFO, succeeding Jesus “Jay” Malave. Scott is a 26-year company veteran, having served as treasurer and CFO of two business areas.
Crist Kolder Associates’ analysis also points to a continued uptick in the pipeline of CFOs moving into CEO roles at Fortune 500 and S&P 500 companies. In the first half of the year, 7.5% of sitting CEOs came directly from a CFO chair, up from 6.5% in 2015. So far this year, there have been about 53 CEO turnovers in the data set. An example of an internal move: In June, Yum! Brands, Inc. elevated its finance chief, Chris Turner, to the role of chief executive. Turner joined Yum in 2019 as CFO, his first time in the role.
As CFO recruiters, Perkins said the firm has a front-row seat to the evolution of the CFO role. The growing number of finance chiefs advancing to the CEO seat reflects a shift in how the market perceives the CFO—as a leader accountable for business results, from total shareholder return to building enterprise value, she explained.
“CFOs are saying, ‘If I’m going to be viewed as accountable for those business results, I need to own some additional functions,’” she said. “We’re seeing an operationalization of the CFO chair.”
Finance chiefs they speak with are seeking rotations into P&L, strategy, and commercial roles to prepare themselves for CEO ascension, Perkins said.
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