Feb. 27, 2007 -- Increased compliance and unreasonable board expectations is expected to result in a record-high turnover rate among chief financial officers in 2007, according to a survey released Tuesday by Tatum, an executive-services and consulting firm based in Atlanta.
Out of 163 executives polled, 93 percent said they believe CFO turnover will be as high or higher than last year, when a record 2,302 CFOs lost or left their jobs, the survey found.
Stricter compliance and governance issues were cited for the higher turnover rates, while other factors, such as a lack of work-life balance, may also be contributing to a lesser degree, respondents said.
When asked about the most effective way of reducing CFO turnover, 27 percent said providing additional resources, such as specialized staff, would help.
"Many CFOs are fired or resign not because they weren't a good match for the company when they were hired 20 months ago, but rather because the business has evolved so quickly that their capacity and capabilities are no longer an ideal match for the company," Tatum CEO Richard D'Amaro said in a statement.