A stock market rally and the increasing demands of the CFO role are prompting finance chiefs to hang up the abacus
By Ezequiel Minaya and Tatyana Shumsky July 17, 2019 5:30 am ET Bill Rogers had climbed the corporate mountain, ascending to the finance chief role at CenterPoint Energy Inc. He had just guided the Houston-based utility through the $6 billion purchase of natural gas and electricity supplier Vectren Corp. And he was approaching an important milestone: his 60th birthday.It is an increasingly familiar refrain.
The market also plays a role: CFOs’ compensation often includes restricted equity grants, which in some cases can only be cashed out in full after retirement. A hot stock market has made that option more enticing. The S&P 500 stock index, which recouped losses suffered during the 2008 global financial crisis by 2013, has reached record highs this year.
Newsletter Sign-up A surge in deal activity has also been a factor. Last year was one of the busiest on record for mergers and acquisitions. Deals can trigger contract clauses that accelerate vesting requirements of restricted shares, giving CFOs an incentive to walk away, said Rhoda Longhenry, co-head of the financial officers practice at executive recruiter True Search.
Comparing the turnover rate for CFOs and CEOs provides some support for the idea that financial executives in particular are facing increased pressure at work. In 2009, the departure rates for CEOs and CFOs—for all reasons, not just retirement—were roughly the same, at 13.5% and 13.4% respectively, according to Audit Analytics. By 2018, the exit rate for CFOs had risen to 17.5%, compared with 15.2% for CEOs.
Retiring executives are also presented with more options, as consulting and outsourcing has permeated into more fields, recruiters said. Once Mr. Pollak was satisfied with his nest egg, his next priority was keeping busy. In his first year of retirement from Eileen Fisher, he traveled to Europe with his wife and secured a seat on a company board.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
5 Steps Financial Leaders Can Take To Cultivate InnovationSean Boyle, CFO at Amazon Web Services, shared five ways CFOs can positively impact business innovation at the Wall Street Journal CFO Network Annual Meeting in Washington D.C.
Leer más »
What's the most stressful part of your trip? Delta wants to knowDelta is gathering more data from customers than ever in hopes of avoiding customer service problems and increasing customer satisfaction, its CFO says.
Leer más »
Kirsten Dunst Climbs Pyramid Scheme in ‘On Becoming a God in Central Florida’ TrailerSee Kirsten Dunst climb a pyramid scheme in the ‘On Becoming a God in Central Florida’ trailer
Leer más »
Teen falls 50 feet to his death rock climbing while at camp, police sayA 15-year-old boy died while he was scaling a rock formation on an outing with his camp in Pennsylvania, officials said.
Leer más »
Cardi B Films Kulture as She Climbs Up the Stairs -- WatchCardi and Offset's daughter celebrated her first birthday earlier this month.
Leer más »
Bank of America Second-Quarter Profit ClimbsBank of America reported higher-than-expected profit for the second quarter.
Leer más »