The latest sign of CFO turnover? The first woman in that role at Jacobs is leaving after 7 months
Good morning. The trend of CFO turnover may be continuing: At Jacobs Solutions, the first woman to serve in that role has stepped down after just seven months.
Engineering consultant Jacobs, no. 277 on the Fortune 500, announced Monday morning that Claudia Jaramillo would be departing the company “to pursue other opportunities.”
“Ms. Jaramillo’s departure was not the result of any dispute or disagreement with the company relating to reported financial statements and related financial results,” the company said in a regulatory filing.
Jaramillo began her tenure as CFO on Aug. 14 after joining Jacobs in July 2022 as EVP of strategy and corporate development. She was previously at Schlumberger, an energy services company, for more than 20 years.
At Jacobs, Jaramillo succeeded Kevin Berryman as finance chief when he became a special advisor to CEO Bob Pragada. “It is also noteworthy that with Claudia’s appointment, we take a step forward in our commitment to diversity and inclusion, as Claudia becomes the first female CFO in the history of Jacobs,” Pragada wrote in a LinkedIn post announcing her promotion in August.
Jaramillo wrote in a LinkedIn post on Monday: “On March 29, I handed over the CFO position. I would like to thank my team for everything that we were able to accomplish together." She also said she appreciated the opportunity to participate in the diversity and inclusion programs at Jacobs, including providing mentorship, sponsoring the Latino employee resource group, and initiating a program to support women.
Berryman will serve as interim CFO while the company searches for a full-time replacement with the help of an executive search firm. He joined Jacobs as EVP and CFO in 2014 and was promoted to president and CFO in November 2019, then became a special advisor to the CEO in August.
'Seller's market'
Jaramillo's departure was a bit jarring given a LinkedIn post she wrote early last week highlighting “a productive visit” to Denver to meet with the global tax team, and a visit to the Los Angeles office, with Friday then being her last day.
It's too early for 2024, but a Russell Reynolds Associates analysis of CFO turnover at S&P 500 companies last year found that it ramped up in the second half of 2023. It topped out at 17.4%, slightly above the 17% figure seen in 2022. It reached a record 18% in 2021, according to the report.
The most recent volatility report from the executive search firm Crist Kolder Associates, based on data from 674 Fortune 500 and S&P 500 companies, shows 112 CFO departures for 2023, up from 100 in 2022, according to the firm.
Clem Johnson, president of Crist Kolder, told me that the firm actually recruited Berryman to the CFO position at Jacobs in 2014. In general, Johnson thinks the trend in CFO turnover is continuing.
“Thus far, in 2024, we have seen no discernible change in the supply-and-demand asymmetry that we observed last year,” he told me. "It's a seller's market."
Another factor in CFO turnover, Johnson added, might be employee burnout in some of the most intense roles. And there's always the possibility of poaching.
"Absolutely," he said. “Even if there is a well-developed internal succession program and viable internal options, many companies run an external search to ensure they have fully explored the ‘realm of the possible.’”
Sheryl Estrada
sheryl.estrada@fortune.com
María Soledad Davila Calero curated the Leaderboard and Overheard sections of today’s newsletter.
This story was originally featured on Fortune.com
