The average tenure of a Fortune 500 CFO is on a downward trend, a new analysis from Spencer Stuart finds

Good morning.

So far this year, I’ve covered several high-profile Fortune 500 CFO departures or situations where an exec moved to a different internal post, as everyone continues to navigate an increasingly complex and challenging environment.

For example, Disney’s CFO Christine McCarthy stepped down and was succeeded by Hugh F. Johnston, joining the company from his role as CFO of PepsiCo. Zachary Kirkhorn, CFO and “master of coin” at Tesla abruptly exited the company, replaced by Vaibhav Taneja. And Uber announced its CFO, Nelson Chai, stepped down and Prashanth Mahendra-Rajah, formerly CFO of VMware, became the new finance chief.

Meanwhile, Alphabet’s CFO Ruth Porat is taking on the new role of president and chief investment officer. And Airbnb CFO Dave Stephenson is becoming chief business officer, a newly created position. VP of finance Ellie Mertz will become Airbnb’s CFO on March 1.

Now there's some data to back up what I've noted anecdotally. CFO tenure in the Fortune 500 is on a downward trend, according to an analysis by Spencer Stuart, a global executive search and leadership consulting firm. Its 2023 Fortune 500 C-suite Leadership Report provides an analysis of the executives who serve in C-suite roles. Spencer Stuart looked at the tenure, diversity, and experiences of those in 11 C-suite roles, such as CEO, CFO, and COO, at Fortune 500 companies as of June 30, 2023. (Changes that have happened since June 30 are not reflected in the data.)

Based on the sample, the average tenure for the C-suite executives, in general, is 4.6 years, up from 4.3 years in 2022. However, the average tenure for CFOs is 4.5 years, down from 4.6 years in 2022 and down from 4.9 years in 2018, according to the firm. CEOs in the Fortune 500 have an average tenure of seven years.

Also, by mid-year 2023, there was 9% CFO turnover in the Fortune 500, in comparison to 7% the same time last year. The report defines turnover as being in the position for six months or less.

Among the Fortune 500 executive leaders, COOs have an average tenure of three years, and a turnover rate of 14%—the highest percentage among the C-suite roles studied, Spencer Stuart found.

The COO role is making a comeback, according to McKinsey. Operations is the focus of the role, but it may be more demanding than ever. A COO’s responsibilities are changing with the times. “As CEOs are increasingly public-facing, dealing with external constituencies and stakeholders, the COO is becoming a counterweight,” McKinsey finds.

Meanwhile CFOs are increasingly taking an operational approach, and some even taking on the role of COO. Block CFO Amrita Ahuja and Macy’s CFO Adrian Mitchell are among finance chiefs at Fortune 500 companies who’ve added COO to their title this year.

Another aspect of the report takes a look at demographics. Women represent 40% of C-suite executives in the roles examined, compared with 38% last year, according to Spencer Stuart. The representation varies greatly across roles.

Approximately 18% of CFOs in the Fortune 500 are women, which is a higher representation than for the CEO role (10%). And 11% of CFOs are from historically underrepresented racial and ethnic backgrounds.

The C-suite position with the highest representation of women (76%) and those from underrepresented backgrounds (44%) is the chief inclusion and diversity officer. (The total representation, including women who also identify as a member of a historically underrepresented group, is 89% for that role, according to the report.)

Spencer Stuart’s analysis also found that about a third of CFOs in the Fortune 500 are external hires. Meanwhile, CIOs are the most likely to be external hires (57%).

Sheryl Estrada
sheryl.estrada@fortune.com

This story was originally featured on Fortune.com