Catherine Guillouard, Isabelle Kocher, Bertrand Dumazy, Emmanuel Faber, Laurent Mignon, Frédéric Oudéa, and Régis Schultz have one thing in common. Besides leading their respective companies – RATP, Engie, Edenred, Danone, BPCE, Société Générale, and Monoprix – all have, at some point in their careers, held positions in finance departments. But can we take their example as a rule and consider this role a sure path to becoming CEO? “If we look at the appointments of the last two or three years, that’s not really the case,” explains Caroline Oulié, managing partner of Boyden Executive Search. A CFO’s ability to become CEO depends on the sector. It remains very rare in industry, where operational management profiles are often preferred, but it’s more common in services, particularly financial services, where finance is, by its very nature, an integral part of the business.”

Above all, cases of CFOs going directly to CEO of large companies are rare. Almost all of them have used an operational role as a springboard to general management. Before taking the reins at RATP, Catherine Guillouard was appointed deputy CEO of Rexel and expanded her sphere of influence beyond the strictly financial function. The same is true for Emmanuel Faber, CEO of Danone's Asia-Pacific region before taking over the group's operational management, or for Régis Schultz who, after being CFO of Castorama, became its deputy CEO in charge of logistics, IT, human resources, and development. "The idea for the CFO is to, at some point, take on more importance, to broaden their scope of action and move beyond the technical aspects that their role can confine them to," adds Martin Louvet , Senior Advisor at Vauban Executive Search .

Transcending its function

To achieve this, before formally expanding their responsibilities, they can take a more prominent role in strategic decisions. “The best preparation for becoming a CEO is being a member of the executive committee,” asserts Sophie Wigniolle, partner at Eric Salmon & Partners. “ CFOs can use this opportunity to transcend their role, demonstrate their leadership, contribute to the company’s collective project, and benefit from their interactions with executive committee members who have a vision of the market and the consumer, learning from them.” She continues, “This is all the more justified given that,  in practice, they are increasingly immersed in operations and no longer hesitate to participate in acquiring new clients, working on synergies or external growth projects, and analyzing the risks inherent in developing a new market.”

This strategic position can eventually allow the CFO to form a partnership with the CEO. "In highly listed companies, the CFO works closely with the CEO, particularly during investor roadshows where they are especially exposed. This is even more true in leveraged buyouts (LBOs) with investment funds as shareholders, where the CFO is heavily involved and challenged by this shareholder," notes Martin Louvet . From there to becoming the CEO's successor, it's a short step. "Especially when you consider that, today, a significant part of the CEO's job in a listed company involves communicating with the markets and reassuring shareholders ," concludes Sophie Wigniolle.

https://business.lesechos.fr/directions-financieres/metier-et-carriere/parcours/0602104834577-la-direction-financiere-voie-royale-vers-la-direction-generale-332674.php