CFO to CEO in Financial Services – Navigating the Transition

Simon RoderickResearch, insights & industry news

CFO to CEO in financial services

CFO to CEO in Financial Services – Navigating the Transition

The shift from CFO to CEO in financial services is far from straightforward, requiring not only new skills but a fundamental change in mindset.

For many CFOs in financial services, the path to becoming CEO is both an enticing prospect and a natural next step. With their deep understanding of financial performance, risk management, and governance, CFOs often possess many of the technical skills required to lead an organisation. A high percentage of CEOs in FTSE companies, across industries, have previously held CFO roles, highlighting the potential of this transition. Yet, the shift from CFO to CEO is far from straightforward, requiring not only new skills but a fundamental change in mindset.

The role of a CFO is defined by focus. As a CFO, your responsibility centres on financial oversight, ensuring the health of the balance sheet, compliance with regulations, and delivering accurate reporting to stakeholders. By contrast, the CEO’s role is expansive. A CEO is ultimately responsible for everything – strategy, culture, operational execution, external relationships, and, crucially, delivering results. The transition demands a shift from a specialist focus to a broader, more strategic view, requiring an ability to balance short-term pressures with long-term vision.

One of the most significant adjustments is in stakeholder management. While CFOs engage with investors, boards, and auditors, CEOs are expected to take this to another level. They are often the face of the organisation, managing relationships with key clients, employees, regulators, suppliers, and the media. They must inspire and motivate teams, set the tone for company culture, and maintain the trust of stakeholders, even during turbulent times. Many CEOs cite communication and relationship-building as critical components of their success, underscoring the need for a strong emotional intelligence quotient alongside technical expertise.

Sales ability is another skill that sets many CEOs apart. CEOs must be able to sell the vision of the company to stakeholders, whether it's gaining buy-in from the board, motivating teams, or attracting investment. For CFOs accustomed to analysing numbers and presenting financial realities, developing the ability to inspire and persuade is a key part of the transition. Those who have gained operational or commercial experience earlier in their careers often find this shift more manageable, as they have already had exposure to the broader business.

Leadership as a CEO is about more than managing processes and delivering results – it’s about embodying the company’s values and leading through uncertainty. CEOs make tough decisions, from navigating economic downturns to managing crises, all while maintaining the confidence of their teams and stakeholders. This requires a deep sense of self-awareness and resilience. Before making the leap, it’s important for any CFO to reflect on their motivations. Is the role of CEO truly what you want, with all its pressures and uncertainties? CEOs often have shorter tenures than other senior executives, and departures are not always on their own terms. Understanding the risks, and being honest about your personal goals and capabilities, is essential.

Interestingly, external experiences can also provide valuable preparation for a CEO role. Leadership roles outside the office, such as managing a sports team, running a charity, or participating in community initiatives, can help build softer skills like team engagement, strategic thinking, and communication. While these experiences won’t replace operational insight, they can complement professional development and help a CFO grow into a more well-rounded leader.

The transition from CFO to CEO is a significant one, requiring a willingness to step outside of comfort zones and embrace new challenges. It’s not simply a promotion; it’s a transformation in how you think, lead, and engage. For those who prepare thoughtfully, gain exposure to broader areas of the business, and develop the soft skills required to lead, the move can be both rewarding and impactful.

The financial services sector, with its unique complexities and dynamic environment, offers incredible opportunities for CFOs to take on the top job. By understanding the demands of the CEO role and preparing deliberately, you can position yourself to lead with confidence and purpose. Whether you’re currently considering the move or planning your career trajectory, the path from CFO to CEO is one of the most challenging – and fulfilling – transitions in professional life.

About Fram Search

Established in 2010, Fram Search is a specialist financial services recruitment consultancy. We focus on mid-to-senior hires in the UK and internationally.

We provide high quality contingent and retained recruitment services to boutiques and global brands. We have long established relationships, outstanding market knowledge, and access to deep talent pools. Fram takes a highly consultative approach, combining outstanding tech with a human approach. We are proud that our contingent fill rate is nearly three times the industry average and we augment our retained search methodology with rigorous psychometric testing. We take ESG seriously, we are champions of diversity and all staff have undertaken unconscious bias training. We also carbon offset.

Please contact us on 01525 864 372 / [email protected] to learn more.

Share this Post