For Chief Financial Officers (CFOs), 2024 marked a historic leap: 34% of departing finance chiefs ascended to president or CEO roles, up sharply from 20% in 2023, according to new data from leadership advisory firm Russell Reynolds Associates. This surge, detailed in their Global CFO Turnover Index covering indexes like the S&P 500, FTSE 100, and Euronext 100, signals a seismic shift in corporate hierarchies—but it also raises questions for CFOs about readiness, technology’s role, and the financial stakes of this expanded leadership path. Read more here.

A New Apex for Finance Chiefs

The data underscores a transformation in the CFO role, now extending far beyond traditional bookkeeping into strategic growth, technology, and risk management. “The CFO role has moved beyond accounting. I’ve used the term ‘strategic growth partner,’” Brett Seybold, CFO of USAA, told Fortune in a related discussion last year. “You’re engaged in technology, marketing, and understanding what drives growth.” In 2024, this evolution propelled finance leaders into broader C-suite roles, with 15% becoming divisional CEOs (up from 11% in 2023) and 6% transitioning to COO positions (up from 5%), per Russell Reynolds’ findings.

This trend reflects corporate America’s demand for financially astute leaders amid economic uncertainty, high inflation, and AI-driven disruption. CFOs like Edmund Reese of Aon, an $80 billion professional services firm, exemplify this shift, telling Fortune, “This work complements my CFO role and our goal to be a Rule of 40 organization… We’re able to better support the company, help it move more efficiently, and rally around major initiatives for 2025 and beyond.” Yet, the leap to CEO isn’t guaranteed—only 8% of CFOs-turned-CEOs steer companies to top-quartile performance, per research cited in industry reports, raising questions about the skills gap between finance and full-spectrum leadership.

Technology’s Double-Edged Sword

For CFOs eyeing the presidency or CEO suite, technology—especially generative AI and data analytics—offers both opportunity and challenge. The Russell Reynolds data coincides with a 2024 EY roundtable where Fortune 250 CFOs cited AI as a top priority, with 86% adopting a neutral stance on investments amid inflation and interest rates. “CFOs have always had to look out into the horizon, but now we have to look even further,” said an unnamed EY participant, emphasizing AI’s role in planning, forecasting, and cost management. Yet, a separate 2024 Horváth CFO Study found only a minority of finance departments fully implementing complex AI tools like machine learning or predictive forecasting, with 60% pessimistic about talent shortages.

This tech gap could hinder CFOs’ ascent. “As you test GenAI use cases, don’t overlook how processes and systems are reinvented to maximize impact,” advised Dan Diasio, EY Global AI Consulting Leader, in the roundtable. For CFOs, mastering AI isn’t just about cost-cutting—it’s about leveraging it to drive growth, a critical CEO trait. Companies like Workday, with AI enhancements in financial planning, and SAP, integrating AI into enterprise data, are models CFOs might emulate. But talent wars, noted by 60% of Horváth’s surveyed CFOs, threaten to bottleneck this transition, as finance teams struggle with workload and expertise shortages.

Financial Implications for CFOs

The financial stakes of this upward trajectory are immense. CFOs moving to CEO roles must balance fiscal prudence with growth, a shift research shows only 8% master effectively. In 2023, median CFO total compensation was about one-third of CEOs’, per Compensation Advisory Partners, but the leap to CEO brings higher scrutiny—and risk. “Their role in steering the company’s direction demands a broader perspective and more extensive supervision than the CFO role,” noted a Workday blog on CFO-to-CEO transitions. With median CEO tenure at 7 years versus 5 for CFOs, per the same data, the pressure to deliver top-line growth often outpaces financial acumen alone.

CFOs must also navigate capital markets’ evolving demands. OpenAI’s CFO Sarah Friar, in a February 20 CNBC interview, projected $11 billion in revenue for 2025, signaling AI’s financial potential—but also its capital intensity, with $8.5 billion annual losses. For CFOs eyeing CEO roles, this mirrors the challenge: balancing innovation with profitability. Russell Reynolds’ data shows 15% of outgoing CFOs took other C-suite roles in 2024, like corporate strategy or risk, down slightly from 16% in 2023, suggesting finance leaders are diversifying but facing fiercer competition for the top job.

The Path Forward: Risks and Rewards

CFOs aspiring to president or CEO must bridge operational, strategic, and technological gaps. “Success isn’t guaranteed for finance leaders moving into the CEO role,” warned the Workday blog, citing examples like Sir Jeremy Darroch of Sky/Comcast and Margherita Della Valle of Vodafone, who thrived, versus others lagging in growth. Training in operations, marketing, and AI, plus mentorship from current CEOs, could close this gap. Yet, the 34% rise in 2024 masks a critical reality: only a fraction deliver standout performance, per Heidrick & Struggles’ research.

For CFOs, the reward is leadership at the pinnacle—but the risk is burnout or failure under broader scrutiny. X posts from @CFOInsights and @ExecStrategy, as of February 20, 2025, debate whether this trend signals a “golden age” for finance or a “CEO bubble” driven by economic need. “CFOs need to adopt a significant shift in focus, matching financial prudence with a growth orientation,” noted one X user, echoing industry findings. As 2025 unfolds, CFOs must harness technology, talent, and strategy to turn this upward path into a sustainable ascent—or risk being sidelined in the C-suite race.