Business Talent Group (BTG), a Heidrick & Struggles company that connects top companies across industries with interim executive talent, released its 2024 High-End Independent Talent report this morning, based on an analysis using proprietary data. The research found that of all interim roles requested, 56% are at the C-suite level.  

Requests for interim CFOs rose 46% year-over-year in 2023, meanwhile, the demand for VP- or SVP-level finance talent, such as controllers or heads of financial planning and analysis (FP&A), surged 114%.

What’s driving that demand? There can be many factors, but it’s typically to solve a particular type of challenge or issue, according to Sunny Ackerman, global managing partner for on-demand talent at Heidrick & Struggles. For example, a CFO recently departed, or the company is undergoing changes. “The interim leadership wave is only growing, and companies are turning to experienced leaders to parachute in during times of transition and transformation,” Ackerman said.

Since 2022, there has been a 170% increase in requests for on-demand leadership roles across finance, human resources, technology, and other functions, according to BTG. Although most interim jobs often last between six and 12 months, occasionally that’s long enough for a firm to decide it doesn’t want that person to leave.

“We do have organizations that will look at the leader that they bring in for an interim period of time and identify them as somebody that they might want to bring on, on more of a permanent, full-time status,” Ackerman said.

In addition to the finance-specific functions handled by a CFO or a senior-level finance professional, more individuals in those roles are working closely with CEOs and other top executives, especially as technology continues to transform what’s needed to be a successful firm, added Ackerman, who shared a recent example of BTG working with a small but growing PE-backed natural food company.

“Our internal search partner, who actually was looking at placing a CEO in that organization, wanted a reliable right-hand to oversee the financial transformation,” she explained. “We were able to bring to market an interim CFO to work alongside the CEO, to initially look at profitability and to help the business continue to scale.”

Companies seeking an interim CFO tend to have the most success bringing one in when there’s a shared understanding not just of strategy and skill sets, but also culture. “If you’re bringing in someone at the executive level,” Ackerman noted, “there certainly is a desire to have financial functional expertise—but also being able to navigate working with employees.”

Sheryl Estrada
sheryl.estrada@fortune.com

María Soledad Davila Calero curated the Leaderboard and Overheard sections of today’s newsletter.

Leaderboard

Stephen Deitsch is leaving his position of CFO at Paragon 28 (NYSE: FNA), an orthopedic medical device company, to join OrganOx Limited, a U.K.-based company focused on preserving donor organs. Kristina Wright was appointed interim CFO. 

Michael Beer was appointed CFO of Energy Vault (NYSE: NRGV), a manufacturer of grid-scale energy storage options, effective April 15. Beer will replace Jan Kees van Gaalen, who is set to retire. Beer comes from FreeWire Technologies where he served as CFO. 

Big deal

New research by global consulting firm Mercer finds the estimated aggregate funding level of pension plans sponsored by S&P 1500 companies decreased by 2% in March 2024 to 107%. This is a result of a decrease in discount rates partially offset by an increase in equity markets, according to the report. As of March 31, the estimated aggregate surplus of $114 billion decreased by $23 billion. This is in comparison to a surplus of $137 billion measured at the end of February, Mercer finds. 

“Equity markets continued to climb last month with the S&P 500 reaching a new all-time high to close out the month of March," Matt McDaniel, a partner in Mercer’s Wealth Practice, said in a statement. "However, interest rates decreased leaving funded status lower to end the first quarter.” 

Courtesy of Mercer

Going deeper

In the latest episode of Fortune’s Leadership Next podcast, Alan Murray sits down with Cisco CEO Chuck Robbins to discuss a new role he’s added to his resume, chair of the Business Roundtable. Robbins succeeds Mary Barra, Chair and CEO of General Motors, in the role. The interview took place at the CEO Initiative dinner, where Murray and Robbins discussed the state of stakeholder capitalism, how much influence the Business Roundtable yields, and whether American industries should receive government subsidies.

Overheard

“Good people want to work for people they respect, and they will not respect people who take all the credit and share all the blame.” 

— JPMorgan CEO Jamie Dimon wrote in his annual letter to shareholders. Dimon argued that leaders should also be open to changing their minds and attitudes when they learn new information.