Thursday, August 7, 2025

Want to retain your CFO? A new study points to empowering a great chief accounting officer

Good morning. As CFO responsibilities have expanded in recent years, turnover among finance chiefs has also increased, prompting companies to raise pay.

For example, CFO salary increases remain steady at public companies: In 2024, the median base salary increase for CFOs was 4%, while CEOs saw no uptick, matching trends from 2023, according to Compensation Advisory Partners. In 2022, median base salary increases were 3.8% for CFOs and 2.9% for CEOs.

However, a study titled “Delegation and CFO Retention: Evidence from Chief Accounting Officers on the Executive Team” suggests that workload—specifically related to accounting—is also a driver of CFO turnover, indicating that companies should look beyond pay to attract and retain finance chiefs. The study was conducted by researchers from the University of Arizona, the University of North Florida, and the University of Iowa.

The researchers focused specifically on the delegation of accounting. They argue that, unlike other responsibilities a CFO may have, such as digital security or risk management, accounting remains a significant task for all public company CFOs given their requirement to certify financial statements.

The study examined data from U.S. public companies between 2004 and 2019, focusing on instances where the CFO delegated accounting duties to a chief accounting officer (CAO) or controller who is recognized as an executive officer.

The key finding: Companies where CFOs delegate accounting responsibilities experience at least an 18% reduction in CFO departures. Delegating accounting enables CFOs to devote more time to higher-level priorities like corporate strategy, digital transformation, and human resources. In contrast, CFOs who manage both detailed accounting and broader strategic duties are more likely to suffer burnout and leave their roles.

This research aligns with the trend of the CAO role emerging as an elevated, strategic leadership position. More companies today seek CAOs who are not just technical accounting experts but also key business partners and infrastructure builders, according to Spencer Stuart. As the CFO role evolves, accounting leaders increasingly take on expanded responsibilities, including tax and operational improvements across the business, the firm notes.

Overall, the “Delegation and CFO Retention” study points to the value of delegation—not only for retaining CFOs, but also for building leadership depth and strengthening companies over time. And I think AI is also poised to help share this workload.

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Kevin D. Cook was appointed CFO of Bumble Inc. (Nasdaq: BMBL), effective Aug. 12. Cook succeeds Ronald J. Fior, who is stepping down from his role as interim CFO and will serve in an advisory role through the end of August. Cook brings more than 30 years of financial management experience to Bumble, having served most recently as the CFO at Cloudera, Inc. He has also held roles as the SVP of finance, corporate development and investor relations at Cloudera and as the VP of strategic finance, corporate and business development at Barracuda Networks, Inc.

Geoff Boyd was appointed CFO of New Charter Technologies, a portfolio company of Palo Alto-based private equity firm Oval Partners. Boyd joins New Charter with more than 25 years of experience. Boyd has held CFO roles since 1999. He spent 15 years working with a team of executives across two high-growth ventures, first taking a telecom startup to a successful exit, and later helping to lead a turnaround and transformation effort at Aventiv (formerly Securus Technologies).

Going deeper

Delta Air Lines has a long-term strategy to increase profitability by shifting away from set fares and moving toward individualized pricing powered by AI. The airline is piloting this approach, currently using AI to set prices for 3% of its fares.

While dynamic pricing—adjusting prices based on changing demand—is not new, Wharton marketing professor Z. John Zhang noted on a recent episode of Wharton's This Week in Business podcast that the prospect of higher import tariffs can shift consumer sentiment. This environment makes it easier for companies to implement dynamic pricing and raise prices.