One theme that has become increasingly noticeable in conversations with CFOs and senior executives is that movement is no longer only driven by underperforming businesses or clear “push” factors. A growing number of executives are choosing to leave organisations that are performing well on the surface.
This is not necessarily a negative reflection on those businesses, but rather an indication of how expectations at senior leadership level are evolving.
A few underlying drivers we’re hearing more frequently:
- Mandate clarity and scope of influence: Many executives are reassessing whether their role has the right level of strategic input and decision-making authority. Even in well-run businesses, a perceived lack of influence on direction-setting can become a deciding factor over time.
- Alignment with the CEO and broader leadership team: CEO-CFO (and broader executive) alignment is increasingly central. Where priorities, pace or leadership style feel misaligned, even strong commercial performance may not offset longer-term dissatisfaction.
- Succession and progression visibility. High-performing executives are paying closer attention to whether there is a credible pathway for growth – either within their current role or into broader enterprise leadership. Where that is unclear, external opportunities become more compelling.
- Change fatigue following extended transformation cycles: Many organisations have undergone significant restructuring, system change or cost optimisation over recent years. In some cases, even successful outcomes have been accompanied by sustained intensity, leading leaders to reassess long-term sustainability in their current environment.
- Ownership and strategic direction shifts: Changes in shareholder expectations, investment horizon or capital allocation priorities can also prompt executives to reconsider alignment, even where operational performance remains strong.
An interesting observation from several CFOs is that retention risk is increasingly less correlated with business performance alone, and more closely linked to leadership alignment, clarity of mandate and perceived future trajectory. Even high-performing businesses are not immune to executive turnover, particularly where senior leaders feel they are no longer operating in the environment, mandate or leadership context they originally joined.
Mel Huang
Partner, Financial Officer Practice