The Path to Financial Officer Success in India: BSE 100 CFO Trends & Turnover

The year 2024 marked a notable uptick in chief financial officer (CFO) transitions within the Bombay Stock Exchange's top 100 companies, with turnover rising to 24% from a previous low of 15% in 2023. This increase is largely attributed to a higher rate of retirements and a growing trend of CFOs advancing to roles beyond their financial positions.

Russell Reynolds Associates conducted an analysis of the CFO profiles within the top 100 BSE-listed companies (excluding public sector enterprises), hereinafter referred to as the TOP 100. Our research showcases key trends and insights in India’s CFO demographics and experience, as well as their impact on value creation and turnover rates.

Key statistics:

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

Internal CFO appointments favored, many of them first-time CFOs

Companies in the TOP 100 favor internal CFO promotions, with 62% of TOP 100 CFOs coming from within the organization. Sector-wise, technology sees the highest rate of internal CFO appointments at 70%, contrasting with healthcare / pharma, which has the lowest at 55% (figure 1a). Among the TOP 100 CFOs, 56% are serving in their first CFO role, while the remaining 44% have previous CFO experience (figure 1b).

Figure 1a: Internal vs. external CFO appointments for TOP 100 by sector

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024,} 

^{based on publicly available data, N = 100}

Figure 1b: CFO experience amongst TOP 100 CFOs

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

Breaking this down further: among those CFOs appointed internally (62% of total), a significant 79% are first-time CFOs, while the remaining 21% are experienced CFOs, having previously held CFO roles at smaller organizations (figure 1c). In contrast, among externally hired CFOs, only 18% are first-time CFOs, suggesting a strong preference for experienced CFOs when recruiting from outside the company.

This points to a broader trend in which companies lean towards seasoned leaders for external hires, but are more willing to promote first-time candidates from within. Notably, a third of TOP 100 CFOs were appointed in the last two years, and another third in the last two to four years (figure 1d).

Figure 1c: CFO experience by internal vs. external appointments for TOP 100

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

Figure 1d: TOP 100 tenure in current CFO role

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

Women hold only 5% of the CFO roles in the TOP 100

Women continue to be underrepresented in CFO roles within the TOP 100, holding only 5% of these positions (figure 2a). Of these, four women CFOs ascended through internal development and promotion, while one was recruited externally. To enhance diversity at the executive level, it’s crucial to invest in building and nurturing diverse talent pipelines internally. Such investments are essential for advancing meaningful change in leadership diversity.

Figure 2a: TOP 100 CFOs by gender

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

TOP 100 organizations view Qualified Chartered Accountant CFOs with Controllership experience as a safe bet

Companies traditionally prefer CFOs who are qualified Chartered Accountants, as evidenced by 73% of TOP 100 CFOs holding a CA qualification, of which 10% also possess an MBA in Finance (figure 3a). Moreover, 60% of these TOP 100 CFOs have ascended through the Finance Controllership and Accounting route, complemented by skills in business partnering. However, there is a growing trend toward hiring CFOs with diverse financial backgrounds, including Investment Banking. The shift toward a broader strategic impact and value creation is evident, as 40% of CFOs now come from varied backgrounds such as Business Finance, Corporate Finance, and Investment Banking. This reflects India companies' efforts to modernize finance functions and prioritize strategic over traditional accounting and control expertise in their leadership roles.

Figure 3a: TOP 100 CFOs educational backgrounds

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

Figure 3b: TOP 100 CFOs backgrounds, by prior experience

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

More appetite to recruit CFOs with multi-sector experience

Overall, 57% of TOP 100 CFOs possess deep sector experience within the specific domains (figure 4a). Due to regulatory requirements, financial services gravitates towards CFOs with exclusively single-sector experience (figure 4b). On the other hand, there has been growing interest in recruiting CFOs with multi-sector experience, particularly in Industrial and Healthcare/Pharma sectors.

This shift indicates more openness to diverse expertise, aiming to integrate fresh perspectives and innovative approaches to financial management across industries. We have also seen that the technology sector is increasingly open to industry-agnostic CFOs. This trend is driven by a talent shortage within the sector and a noticeable migration of CFOs from large tech companies to mid-sized, high-growth firms.

Figure 4a: TOP 100 CFO sector experience

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

Figure 4b: TOP 100 CFO sector experience, by industry

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

The top seven value-creating companies are predominantly led by externally hired CFOs

When analyzing the top value creators amongst the TOP 100 and the CFO profiles that have influenced their growth over the past five years, a few trends emerged.

Market cap outperformance vs. benchmark

^{Source: Russell Reynolds Associates’ TOP 100 CFO analysis, data collected from RRA proprietary research in December 2024, based on publicly available data, N = 100}

BSE 100 CFO turnover climbs after a dip in 2023

In 2024, the BSE 100 experienced 24 CFO transitions, elevating the turnover rate to 24%, a significant increase from the record low of 15% observed in 2023 (Figure 5a). Notably, sectors such as technology and financial services saw a year-over-year increase in turnover.

Figure 5a: YoY turnover trends for BSE 100 CFOs based on incoming CFOs, by sector and overall (2020-2024)

^{Source: RRA analysis of the BSE 100 from 2020 to 2024}

In 2024, there were 22 outgoing CFOs. CFO transitions within the BSE 100 were evenly split, with 50% opting for new roles, while the other 50% either retired or moved into board-only positions (figure 5b). Among those who pursued new roles, 45% remained within their existing organizations, transitioning to CEO or divisional CEO roles.

Figure 5b: 2024 CFO exits – Where did they go next?

^{Source: RRA analysis of the BSE 100 in 2024. N = 22 outgoing CFOs. Note that in 2024, there were 24 new incoming CFOs appointed, but 22 outgoing CFOs – 2 had exited in the prior year.}

Number of departing CFOs per new role

^{Source: RRA analysis of the BSE 100 in 2024. N = 22 outgoing CFOs}

CFO retirement rates remain steady, but may see uptick in future

Over recent years, the pattern of CFO departures from BSE 100 companies has shown consistency, with 50% of those leaving choosing to retire or transition to board roles (figure 6). The average age of these TOP 100 CFOs is 53, with 13% of them aged over 60. Given these demographics, it’s likely that India's large capitalization companies will experience significant CFO turnover in the coming years, as more executives reach the age of superannuation.

Figure 6: YoY retirement rates for departing BSE 100 CFOs (2020-2024)

^{Source: RRA analysis of the BSE 100 from 2020 to 2024. N = 19, 21, 24, 11, 22 outgoing CFOs in 2020, 2021, 2022, 2023, 2024 respectively.}

Planning for BSE 100’s future financial leadership

The CFO transitions within the BSE 100 reveals a dynamic interplay of internal promotions, sector-specific dynamics, and changing demographics. With a notable number of retirements and an aging demographic among CFOs, proactive succession planning is critical to ensure organizational continuity and foster growth.

To effectively plan for the future of your financial leadership, we recommend:

• Engage in ongoing career development conversations: As CFOs increasingly aspire to CEO roles, evaluate their potential as successors. Assess the competencies required for them to ascend to top executive positions, which may involve expanding their current roles or temporarily serving as COO or a division president/CEO to build these skills. Additionally, engage with and develop the next generation of talent within your organization.
  
  
• Initiate retirement planning discussions: Anticipate and plan for upcoming CFO retirements by openly discussing their retirement intentions, informed by earlier career conversations.
  
  
• Invest in succession planning: Following career planning discussions with your CFO, revisit your finance talent succession strategy to ensure alignment with your organizational timelines. Given the current lack of gender diversity in the pipeline, focus on the development and retention of women in finance roles. Evaluate the depth of your talent search, the effectiveness of your assessment and development approaches, and the robustness of your overall transition strategies.
  
  
• Ensure a seamless CFO transition: Given that many CFOs are promoted from within, build confidence in promoting first-time CFOs by providing appropriate support, such as mentorship programs and team evaluations, to ensure they have the necessary resources to succeed.

By implementing these strategies, BSE 100 organizations can not only maintain a strong leadership pipeline, but also adapt to the dynamic CFO roles and expectations of today's corporate environment.

Authors

Vinita Katara is a senior member of Russell Reynolds Associates' Corporate Officers and Private Capital sectors. She is based in Mumbai.

Rahul Thapar is a member of Russell Reynolds Associates' Financial Officers, Private Capital and Technology sectors. He is based in Mumbai.

Kayanush Patel is a member of Russell Reynolds Associates' Financial Officers Research team. She is based in Mumbai.

Laura Syn leads Russell Reynolds Associates’ Knowledge team in Asia Pacific. She is based in Hong Kong.

Catherine Schroeder leads Russell Reynolds Associates’ Financial Officers Knowledge team. She is based in Toronto.

Shira Ophir is a member of Russell Reynolds Associates’ Financial Officers Knowledge team. She is based in Chicago.

Avnish Kumar is part of the Data Services Team at WNS working with Russell Reynolds Associates’ Asia Pacific Knowledge team. He is based in Gurgaon, India.