In the evolving world of corporate finance, chief financial officers are facing unprecedented pressures, with turnover rates climbing amid expanded responsibilities. A recent study highlights a novel strategy for retention: bolstering the role of the chief accounting officer. As CFOs juggle everything from strategic planning to risk management, companies that empower strong CAOs can alleviate some of that burden, potentially stemming the exodus of top finance talent.

The study, conducted by executive search firm Heidrick & Struggles, surveyed over 300 CFOs and finance leaders globally. It reveals that organizations with robust CAO positions see lower CFO attrition, as these roles handle core accounting functions, freeing CFOs to focus on high-level strategy. This comes at a time when CFO tenure has dipped below five years on average, driven by burnout and poaching.

Elevating the CAO: A Strategic Imperative

Empowering the CAO isn’t just about delegation; it’s about transforming the position into a strategic powerhouse. According to the findings reported in Fortune, CAOs are increasingly seen as elevated leaders who contribute to board-level decisions, not mere compliance officers. This shift allows CFOs to engage more deeply in areas like mergers, sustainability initiatives, and digital transformation, which have ballooned their workloads in recent years.

For instance, at companies like STERIS, recent announcements via GlobeNewswire indicate a smooth CFO transition where the incoming leader, Karen L. Burton, previously served as CAO. This underscores how a capable CAO can step up seamlessly, reducing disruption and enhancing retention by providing a clear succession path. Posts on X from finance influencers like Anders Liu-Lindberg emphasize the modern CFO’s role as a business partner, suggesting that offloading tactical duties to empowered CAOs fosters better collaboration across the C-suite.

The Broader Context of CFO Challenges

Beyond retention, the study points to compensation as a factor, with CFO pay rising sharply to combat turnover. Yet, as detailed in a PwC report on executive leadership, successful CFOs in 2025 must prioritize technology adoption and climate action, areas where a strong CAO can provide critical support through accurate financial reporting and data analytics.

High-profile shifts, such as CFOs moving to COO roles as noted in WebProNews, illustrate the demand for finance leaders’ skills in operations amid economic uncertainty. This trend, exemplified by John Rettig’s transition at Bill.com, highlights how overburdened CFOs seek new challenges, but a empowered CAO could keep them in place by balancing their portfolios.

Implementing CAO Empowerment in Practice

To make this work, companies should invest in CAO development, including advanced training in AI-driven accounting and strategic advisory. The Heidrick & Struggles study, as covered in BizToc, notes that firms with CAOs involved in cross-functional teams report 20% higher CFO satisfaction. This aligns with sentiments on X, where users like Nicolas Boucher break down C-suite dynamics, stressing the CFO’s need for operational allies.

Moreover, Fortune’s analysis of CFO turnover from late 2024 warns that without such structural changes, companies risk strategic missteps during transitions. By contrast, organizations like those in PwC’s case studies show that collaborative finance functions build resilience.

Looking Ahead: Retention Strategies for 2025

As we move deeper into 2025, the interplay between CFOs and CAOs will likely define finance team stability. Drawing from CFO.com’s expert advice, leaders should audit their structures to ensure CAOs aren’t siloed but integrated into growth planning. Recent X discussions from Bojan Radojicic highlight leadership gaps in finance, reinforcing that people-focused strategies, including CAO empowerment, are key to inspiring teams.

Ultimately, this approach isn’t a quick fix but a fundamental rethink of finance hierarchies. Companies ignoring it may face continued churn, while those adapting could secure a competitive edge through stable, strategic leadership. The evidence from these studies and real-world transitions suggests that empowering CAOs is more than retention tactic—it’s a blueprint for future-proofing the C-suite.