SOX Center

Shareholders and board members should prepare for record turnover among Chief Financial Officers (CFOs) in 2007, according to a new survey from executive services firm Tatum, LLC. Data from the survey suggests that compliance headaches such as Sarbanes-Oxley requirements and unrealistic demands from board members and CEOs will drive more than 2,300 CFOs from their positions in 2007.

We are approaching an inflection point in the office of the CFO, and corporate America may soon find that creating shareholder value is impossible with what is quickly becoming an itinerant CFO,” said Richard D’Amaro, Tatum Chairman and CEO. “Many CFOs are fired or resign not because they weren’t a good match for the company when they were hired 20 months ago, but rather because the business has evolved so quickly that their capacity and capabilities are no longer an ideal match for the company.”

A record 2,302 CFOs left their positions in 2006, according to independent research firm Liberum Research. A survey of more than 150 Tatum partners in the firm’s Executive Practice last month indicates that 93 percent believe CFO turnover in 2007 will be as high or higher than 2006. Only seven percent of the respondents expect to see fewer CFO departures in 2007.

Morningstar: New Survey Predicts 2007 Will Set Record for CFO Turnover