Diversity among CEOs, CFOs continues to rise

By Bryan Strickland

The percentage of women and racially or ethnically diverse CEOs and CFOs at large companies has nearly doubled over the past decade, according to a long-running report.

The Crist | Kolder Associates Volatility Report 2022, in its 19th year, gathered data for the first half of 2022 from 681 companies from the Fortune 500 and S&P 500.

The report's latest data revealed a record percentage of female and racially or ethnically diverse company leaders. Currently, 158 CEOs and CFOs at the companies studied are female or racially or ethnically diverse (or both), nearly double the number in the 2012 report (86).

In 2022, 7.3% of sitting CEOs and 16% of CFOs are women, up from 3.5% and 9.7%, respectively, a decade ago; 10.7% of sitting CEOs and 10.9% of CFOs are racially or ethnically diverse, up from 5.4% and 3.6%, respectively, a decade ago.

Overall, 88.8% of CEOs, CFOs, and COOs in the 2022 report are Caucasian, and 88.1% are men.

Companies in the financial industry have more than doubled their diversity numbers over the last decade. Financial companies in the report have 59 CEOs and CFOs who are women or who are racially or ethnically diverse (or both), more than double the number in the 2012 report (26).

The CEO and CFO roles within the 137 financial companies reviewed in the report turned over at a 13.1% rate through the first half of 2022 — the lowest rate among the eight industry segments identified by the report. The services industry had the highest turnover rate at 23%.

In addition, the current group of C-suite leaders working for financial companies are among the longest-tenured in the report. The CEO of a financial company has been on the job for 9.7 years on average — the longest tenure by industry segment. The average CFO of a financial company has been on the job for 5.4 years — second to the retail segment in terms of longevity.

More than 1 in 4 sitting CEOs in the financial sector moved into the role directly from a CFO position. No other industry sector had more than 1 in 6 CEOs follow that path.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.

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