Accounting
CFOs have the worst job security in the C-suite
Chief financial officers continue to experience a downward decline in tenure and maintain the lowest level of job security in the C-suite, even though their pay has been rising, according to a new study.
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That average of 3.1 years for CFO compares unfavorably to chief technology officer (4.3 years), general counsel (4.2 years), chief marketing officer (4.0 years) and CEO (3.9 years) based on complete 2023 data.
Datarails analyzed SEC filings by 1,657 of the biggest U.S.-listed companies between 2018 to 2023, the latest period for which official data exists, examining CFO tenure and compensation mandated by the Securities and Exchange Commission in annual filings. Nearly half (48%) of the listed U.S. companies have experienced at least one CFO turnover in this latest five-year period, according to the analysis.
On the positive side, the study found CFO pay rose an average of 9% over the past year, reaching an average of $3.8 million among the listed companies in 2023 (comprising salary, bonuses, stock awards and options). Those who scored the biggest pay days among the large sample included LiveNation Entertainment CFO Joe Berchtold, whose total annual compensation amounts to $52 million, Comcast CFO Michael J. Cavanagh ($40.5 million) and Walmart CFO John David Rainey ($40 million).
Beyond the perks and high pay, the CFO post remains the surest way to become CEO. Of the sample companies, 15 finance chiefs among the 1,657 companies got promoted to CEO in 2023. All of them were men.
“The modern CFO role has become corporate America’s ultimate high-wire act — shorter tenures but bigger paydays,” said Datarails CEO and co-founder Didi Gurfinkel in a statement Tuesday. “The CFO seat is increasingly becoming less of a destination and more of a crucible as evidenced by finance chiefs ascending to the role of CEO. This paradox signals a fundamental shift in corporate leadership — where CFOs who can produce value creation in an atmosphere of volatility are seeing long-term rewards and opportunities.”
In many cases, the job of CFO was effectively a revolving door, with 22 publicly listed companies churning through four CFOs in five years (2018 to 2023). Those companies included Apogee Enterprises, Calavo Growers, Cardinal Health, Gulfport Energy, Papa John’s International, ATKO Group and Vontier. Apogee Enterprises, a glass designer for buildings such as the U.S. Bank Stadium and Capella Tower, appointed Nisheet Gupta as CFO in May 2020, after longtime CFO James Porter CFO retired. By July 2022, Gupta announced his resignation, with a new CFO, Mark Augdahl, named as interim CFO. By March 2023, Augdal was on his way out, and Matthew James Osberg was appointed CFO.
In addition, 152 companies had three CFOs, including prominent brands such as Dollar General, eBay, Expedia, Guess, Jack in the Box, Pitney Bowes and Under Armor.
Easing restrictions, sharpening personal attention and clarifying denials are among the aims of
The programs focus on “fast track settlement,” which allows IRS Appeals to mediate disputes between a taxpayer and the IRS while the case is still within the jurisdiction of the examination function, and post-appeals mediation, in which a mediator is introduced to help foster a settlement between Appeals and the taxpayer.
The IRS has been revitalizing existing ADR programs as part of transformation efforts of the agency’s new strategic plan, said Elizabeth Askey, chief of the IRS Independent Office of Appeals.
“By increasing awareness, changing and revitalizing existing programs and piloting new approaches, we hope to make our ADR programs, such as fast-track settlement and post-appeals mediation, more attractive and accessible for all eligible parties,” said Michael Baillif, director of Appeals’ ADR Program Management Office.
Among other improvements, the pilots:
- Align the Large Business and International, Small Business and Self-Employed and Tax Exempt and Government Entities divisions in offering FTS issue by issue. Previously, if a taxpayer had one issue ineligible for FTS, the entire case was ineligible.
- Provide that requests to participate in FTS and PAM will not be denied without the approval of a first-line executive.
- Clarify that taxpayers receive an explanation when requests for FTS or PAM are denied.
Another pilot, Last Chance FTS, is a limited scope SB/SE pilot in which Appeals will call taxpayers or their representatives after a protest is filed in response to a 30-day or equivalent letter to inform taxpayers about the potential application of FTS. This pilot will not impact eligibility for FTS but will simply test the awareness of taxpayers regarding the availability of FTS.
A final pilot removes the limitation that participation in FTS would preclude eligibility for PAM.
The traditional appeals process remains available for all taxpayers.
Inquiries can be addressed to the ADR Program Management Office at
The Internal Revenue Service has updated and added new guidance for taxpayers claiming the Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit.
The updated
New sections have been added on how long a taxpayer has to claim the tax credits, guidance for condominium and co-op owners, whether taxpayers who did not previously claim the credit can file an amended return to claim it, and a series of questions on qualified manufacturers and product identification numbers. Other material has been added on how to claim the credits, what kind of records a taxpayer has to keep for claiming the credit, and for how long, and whether taxpayers can include financing costs such as interest payments in determining the amount of the credit.
The IRS states that “financing costs such as interest, as well as other miscellaneous costs such as origination fees and the cost of an extended warranty, are not eligible expenditures for purposes of the credit.”
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