Earlier this week, I reported on new research finding record CFO turnover—and how unprepared many companies are for this level of churn, with many lagging on succession planning.

To continue the conversation, Shawn Cole, president and founding partner of executive search firm Cowen Partners, shared with me what he’s been seeing.

“The CFO scramble is here,” Cole told me. From his vantage point, the succession crisis isn’t just about volume. 

“Boards have no process for developing or identifying the next generation of CFOs,” he said. “CEO succession has infrastructure: committees, multiyear development programs, and succession scorecards. CFO succession is reactive. Most boards wait until retirement is announced, then scramble.”

He continued, “That’s colliding with a bigger problem: boards are discovering their internal CFO pipelines are completely empty.” For example, 10 years ago, they built finance leadership development around the skills CFOs needed then: controller backgrounds, deep accounting expertise, strong audit committee relationships, and FP&A rigor, he explained.

“The boards calling us now need CFOs who can lead technology transformation, manage geopolitical supply chain complexity, defend against activists, and navigate volatile capital markets,” Cole said. Those capabilities weren’t part of traditional finance career paths, and companies don’t have anyone internally who has been developed for that version of the role, he said.

Research continues to point to finance leaders as strategy leaders. For many, gone are the days when influential finance leaders spent most of their time on the core foundations of financial management. CFOs’ roles will continue to evolve, especially as they embrace advanced AI and cloud. One company that clearly prioritized CFO succession is fintech and trading platform Robinhood. Its CFO transition played out over seven years and included a powerful mentorship.   

Cole is also finding that companies are going external for CFOs. But the external searches that used to take four to five months are now running seven to nine.

“Boards are competing for a small group of sitting CFOs who have the modern skill set and are willing to move,” Cole said. Compensation is rising faster than boards budgeted, and he’s seeing boards compromise on requirements they said were nonnegotiable six months into a search.

It seems that boards can no longer treat CFO succession as an afterthought; in this market, it’s fast becoming one of their most consequential strategic decisions.

The next CFO Daily will be in your inbox on Tuesday. Have a good weekend.

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Notable CFO moves this week:

Adrian Mitchell was appointed CFO of Warby Parker Inc. (NYSE: WRBY), a direct-to-consumer lifestyle brand and eyewear company, effective Feb. 10. Mitchell has more than 25 years of experience. Most recently, he served as chief operating officer and CFO of Macy’s, Inc., where he helped modernize operations by embedding AI-driven tools across the enterprise. He was also previously CFO, COO and interim CEO of Crate & Barrel Holdings, where he led a digital-first transformation.

Sheamus Toal was appointed EVP, CFO, and principal financial officer of Designer Brands Inc. (NYSE: DBI), effective Feb. 16. Mark Haley, who has served as interim principal financial officer during the transition period, will return full-time to his position as SVP, controller and principal accounting officer. Most recently, Sheamus served as COO and CFO of The Children's Place. Previously, he served as EVP and CFO of Saatva.com. Earlier, Sheamus spent more than a decade at retailer New York & Company, including 12 years as CFO, and then later served as CEO.

Aurélien Nolf was appointed CFO of Navan (NASDAQ: NAVN), an AI-powered business travel and expense platform, effective March 2. Nolf has more than 20 years of international public company experience. He has served as the VP, head of FP&A and investor relations at Lyft. Prior to Lyft, he spent 15 years at Electronic Arts, serving in various finance leadership roles. He began his career in the public accounting and audit practice at PwC in Lyon, France.

Rita Johnson-Greene was appointed CFO of Ocugen, Inc. (Nasdaq: OCGN), a biotechnology company. Johnson-Greene has more than 20 years of health care experience. She most recently served as chief operating officer at the Alliance for Regenerative Medicine. Before that, she was the VP of sales and qualified treatment centers at Genetix Biotherapeutics (formerly known as bluebird bio). Johnson-Greene also held senior leadership positions at Spark Therapeutics. 

Chelsea Pullano was appointed CFO of Greenwave Technology Solutions, Inc. (Nasdaq: GWAV), an operator of metal recycling facilities. Pullano has experience supporting public and private companies in accounting, financial reporting, and strategic finance. She co-founded MACK in May 2023, an accounting and advisory firm. Since May 2023, she has served as a partner and chief executive officer of MACK. Previously, Pullano served as CFO of Creatd, Inc.

Indraneel "Neel" Dev was appointed EVP and CFO of WESCO International, Inc. (NYSE: WCC), a logistics services and supply chain solutions provider. He will succeed Dave Schulz, EVP and CFO, who expects to retire in May. Most recently, Dev served as the CFO and chief revenue officer of Congruex LLC. Before that, he served as CFO of Lumen Technologies.

Big Deal

"Why All Investors Are Vulnerable to ‘Correlation Neglect’" is a new report in Wharton's business journal. New research from Wharton's Jessica Wachter finds that investors systematically overreact to repetitive earnings news—and then correct that mistake in the months that follow. The cause is a behavioral phenomenon known as correlation neglect, according to Wachter. 

Going deeper

Here are four Fortune weekend reads:

"America’s national debt borrowing binge means interest payments will rocket to $2 trillion a year by 2036, CBO says" By Eleanor Pringle

"AI is changing the CEO’s role—and could lead to a changing of the guard" By Phil Wahba

"The 70/30 rule that separates millionaires from everyone else" By Nick Lichtenberg

"Mark Zuckerberg is joining Jeff Bezos in Miami’s billionaire bunker: Take a look inside his real estate portfolio" By Marco Quiroz-Gutierrez

Overheard

“Valentine’s Day is a cherished holiday that resonates with many Americans, as seen with expected record-breaking spending this year.”

—National Retail Federation (NRF) vice president of industry and consumer insights Katherine Cullen said in a statement. Consumer spending for Valentine’s Day, celebrated on Feb. 14, is expected to reach a record $29.1 billion, according to the annual survey released by NRF and Prosper Insights & Analytics. The amount surpasses the previous record of $27.5 billion in 2025. Candy remains the most popular Valentine’s Day gift, with 56% of consumers planning to purchase it.