CHICAGO, April 14, 2011 (GLOBE NEWSWIRE) -- "Many financial services companies are finding when it comes to choosing a new Chief Financial Officer, the well is dry," says Jory Marino, Vice Chairman of Heidrick & Struggles (Nasdaq:HSII), the leadership advisory and executive search firm. "A number of CFOs, after remaining in place to see their firms through the crisis, only recently feel able to leave and turn over the reins. The stronger demand for new CFOs – met by a diminished supply of talent – presents a formidable challenge for boards and CEOs in 2011."
In a new white paper examining the CFO talent shortage – "What to Do When the Well Runs Dry? Rebuilding the Finance Function within the Financial Services Industry" – Jory Marino and Todd Monti explore the CFO talent gap within this industry – illustrating the dynamics of the talent shortage, why it will get worse and how financial service companies can fix the problem.
Crisis Actually Slowed Turnover
In 2010, only 12 CFOs of financial services companies in the Fortune 1000 turned over, dropping from 15 turnovers in 2009 and 26 in 2008, according to Heidrick & Struggles. The slowdown mirrors numbers across other industries, with only 75 CFOs turning over across the Fortune 1000 as a whole in 2010, down dramatically from 126 turnovers in 2009 and 191 in 2008.
However, a kind of 'fatigue' has set in among CFOs, who increasingly see the position as unattractive. And, many of the up-and-comers who might have been seen as natural successors for the role just a few years ago frankly don't want the job.
"A series of factors are kicking in – but, the biggest is that CFOs are actually taking their delayed retirement – a direct contributing factor for a real talent shortage," states Todd Monti, Managing Partner of the global Private Equity & Venture Capital Practice. "CFOs have had a rough couple of years – toss in increased regulatory pressure, heightened public scrutiny and any CFOs at a breaking point may be inclined to retire early."
Heightened Demand Creating Talent Crunch
The shortage in top talent is being met by a heightened demand, say the authors of the white paper. Demand is being driven by:
- Need for new blood to help lead financial services companies into recovery mode – "CEOs are now beginning to make changes to their leadership teams and are competing for game-changing financial talent that can shift gears past the survival mode," Mr. Marino notes.
- Private equity firm hiring – "Private equity firms are successfully competing with publicly traded companies for exceptional CFOs, lured for their existing portfolio companies or looming new deals in the pipeline," says Mr. Monti.
- Pull of regulatory changes – "With increased regulatory reform, almost all financial services companies will be shoring up their finance function to meet new risk management, financial disclosure and compliance requirements," added Mr. Monti.
To combat this talent drought, CEOs and boards must re-think their finance retention talent strategy. As part of the study, Marino and Monti illustrate the essential steps financial services firms must take to rebuild their finance talent pools to position their companies better for future succession planning as well as maintaining their current talent infrastructure.
A complete copy of the study is available at . To speak with either of the authors, please contact:
Wendi Taylor Nations, Chief Marketing Officer
+1 (312) 496-1810
Jory Marino is vice chairman and a senior member of the Heidrick & Struggles' Financial Services Practice. He focuses on general management, senior level operations, and technology assignments for global banks, investment banks, trading, asset management, and diversified financial services companies.
Todd Monti is managing partner of the global Private Equity & Venture Capital Practice and CFO Sector Leader for Financial Services at Heidrick & Struggles. He focuses on investment professional and infrastructure searches for the management companies of private equity firms and their portfolio companies.
About Heidrick & Struggles International, Inc.
Heidrick & Struggles International, Inc., (Nasdaq:HSII) is the leadership advisory firm providing senior-level executive search and leadership consulting services, including succession planning, executive assessment and development, talent retention management, transition consulting for newly appointed executives, and M&A human capital integration consulting. For almost 60 years, we have focused on quality service and built strong leadership teams through our relationships with clients and individuals worldwide. Today, Heidrick & Struggles' leadership experts operate from principal business centers in North America, Latin America, Europe, and Asia Pacific. For more information about Heidrick & Struggles, please visit .
CONTACT: Wendi Taylor Nations +1 (312) 496-1810 firstname.lastname@example.org