Should a CFO switch industries? For these Fortune 500 finance chiefs, a new sector provided a career boost

Good morning. As CFO turnover is on the rise, it's a good time to explore the risks and opportunities that go with finding a new job in a different industry.

I had a conversation with Scott W. Simmons, co-managing partner of executive search firm Crist Kolder Associates, about this topic. His advice for CFOs: “You’ve got to get into an industry and at a company that you find exciting and fascinating.” Finance chiefs should know that the world is wider for them as they build their careers, said Simmons, who has more than 20 years of experience in his field.

The firm has been involved in many cases where they’ve moved executives from industry to industry, he said. That’s not to say companies looking for a CFO are totally throwing the idea of what industry the candidate works in out the window, Simmons added. However, what every company wants first and foremost in a finance chief is someone with financial acumen whose experience has molded them into a good, strong, proven leader, he said.

'Good financial leadership'

We talked about the latest example of a CFO changing industries, and Fortune 500 companies. Last week, Anat Ashkenazi, the CFO at pharmaceutical company Eli Lilly (no. 127), was named the next CFO and SVP of Google and Alphabet (no. 8). Ashkenazi, who began her CFO role at Lilly in 2021, has been with the company for more than 20 years.

“I see clear analogies between what Ashkenazi experienced over 23 years at Lilly and what she will experience at Alphabet,” Simmons told me. Pharmaceutical companies are R&D driven and are required to be cutting edge, he said. She’ll also bring an understanding of how to operate in a highly regulated environment. While there could be a learning curve moving between industries, particularly after such a long tenure at one company, “good financial leadership is good financial leadership,” he said.

Simmons also said another example is Kathy Mikells, currently SVP and CFO at Exxon Mobil (no. 7 on the Fortune 500), the largest publicly traded oil and gas company in the U.S. Mikells has been a finance chief six times in different industries. “Kathy's world-class,” he said. “She's a great leader and has a strong following.”

Mikells was previously CFO at United Airlines; chemical company Nalco; ADT; Xerox; and Diageo, a beverage manufacturer. Mikells, who joined Exxon in 2021, made her debut on the 2023 Fortune Most Powerful Women list. She is the first woman and external hire to join the oil major’s management committee.

John David Rainey, current CFO at Walmart no. 1 on the Fortune 500, is another example of a CFO who has moved to different industries. Rainey was previously a CFO at United Airlines and PayPal.

But for some finance chiefs, there’s a flip side to this. Switching industries may be tricky for CFOs in banking, insurance, or defense, for example, Simmons said.

“I’ve talked to lots of folks at banks who say, ‘It's kind of suffocating being CFO of a publicly traded bank these days,’” he said. It’s hard for CFOs in those fields to break out of that shell, he said. “Not impossible; but more difficult,” Simmons added.

Sheryl Estrada
sheryl.estrada@fortune.com

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