Council Post: What’s On The Horizon For CFOs In 2024 (2024)

FAQs

What are the CFO priorities for 2024? ›

Current priorities for finance leads include a strong technology focus as CFOs look to invest more in digital innovation, improve IT infrastructure, drive data analytics initiatives forward, and embrace valuable automation and AI opportunities.

Our CFOs are more well-rounded than ever and will continue to enhance their skillsets as many take on more responsibility and possibly become CEOs in the future.” Other key findings in the report include: 82% of CEO respondents felt that the role of the CFO would increase or significantly increase in importance.

The CFO of the future and finance teams will need to adapt quickly to change, whether it's supporting their company's ability to move into a new market, adapt to new regulations, or create a new business model. CEOs are also looking to CFOs to help drive innovation and transformation within their organizations.

Strategic Planning and Execution

They should understand your company's goals, develop strategies to reach them, and ensure the team is executing those plans. Here's how: Setting long-term yet feasible financial goals. Analyzing the business environment to identify potential growth opportunities.

In your crucial first 90 days as CFO, you will devote much of your effort to gathering information and assessing your company's financial situation. This foundational work is vital as you sketch out a long-term financial strategy that aligns with discussions with the CEO and the organization's overarching goals.

There are four pillars: Accounting, Finance, Treasury, and Leadership.

As well as the requisite technical skills and qualifications, a CFO should have leadership, communication, and influencing skills. A breadth of experience across different finance disciplines and either industries or geographies should enable a CFO to be a business partner and add strategic value.

Top of mind for CFOs in 2024

How to use cost as an effective lever to create value: With the economy slowing down and revenue growth under pressure, SG&A optimization is being used as one of the key levers to unlock greater profitability and increase enterprise value, aside from seeking other growth opportunities.

For many Chief Financial Officers (CFOs), the journey to the C-suite was well worth the time and effort invested. It typically takes several years of hard work, dedication, and experience to become a CFO. The average age of a CFO is usually around 45, though some can become CFOs as early as their late 30s or early 40s.

Based on full compensation data for 2022, the top paid CFO in the US is Joe Berchtold of entertainment group LiveNation (52.4M)–capping a bumper executive year for the entertainment concert company whose CEO Michael Rapino also bagged the highest earning chief executive in the US at $139 million.

What do CFOs worry about? ›

CFO Challenges FAQs

These trends include inflation, higher interest rates, geopolitical unrest, supply chain shortages, and a possible recession.

CFOs are most worried about economic volatility, geopolitical tensions, cybersecurity risks, and the ability to adapt to rapid technological changes.

In summary, CFOs remain focused on creating efficiencies and increasing productivity in 2024 – and have added digital transformation to their priority list. Like their C-suite peers, they are eager to realize the promise of AI and automation tools in improving their operations and processes this year.

Strategic Outlook

Most CFOs find themselves implementing changes within their companies, whether on a financial or operational level. Having a strategic outlook is a leadership skill that will help CFOs uncover potential opportunities for growth and tackle existing challenges within the company.

To be effective, CFOs must be both personable and analytical. They need to be excellent communicators who exude credibility and are confident discussing any aspect of the business, not just the financials.

As a high-growth CFO, the pressure to meet financial targets, manage budgets, and make strategic decisions can be overwhelming. It's easy to get caught up in the day-to-day demands of the job and forget to take care of yourself.

CFOs should form an independent, fact-based view of the resources, support structures, and activities that the organization has in place to create value—as well as which ones actually do create value. Then they should make sure all C-suite colleagues, business unit leaders, and the board of directors are aligned.

What are CFOs most concerned about? ›

What are CFOs most worried about? CFOs are most worried about economic volatility, geopolitical tensions, cybersecurity risks, and the ability to adapt to rapid technological changes.

Within the new CFO's first 100 days, they will need to spend as much time as possible with the CEO and identify their priorities and expectations. Make the right connections with board members and stakeholders (this includes investors and shareholders as well as employees, customers and suppliers) and build rapport.

The framework segments the four critical roles CFOs play today—Strategist, Catalyst, Steward and Operator—and organizes each role by the areas of focus, functions and competencies CFOs need to bring to the table.