Strategic Delegation Cuts CFO Turnover by 18% as Study Links Empowered CAOs to Leadership Stability

Companies are increasingly recognizing the importance of strategic delegation in retaining chief financial officers (CFOs), according to a new academic study. While salary increases remain a key factor in CFO compensation—public companies awarded median base salary increases of 4% in 2024—the research highlights that workload management, particularly in accounting-related tasks, plays an equally critical role in reducing turnover [1].

The study, conducted by researchers from the University of Arizona, the University of North Florida, and the University of Iowa, found that CFOs who delegate accounting responsibilities to a chief accounting officer (CAO) or controller experience at least an 18% reduction in turnover. This is attributed to the ability of CFOs to focus on strategic priorities, such as digital transformation and corporate strategy, rather than being overburdened with detailed accounting work. The study analyzed U.S. public companies from 2004 to 2019 and emphasized that accounting remains a core and non-delegable responsibility for CFOs due to their statutory duty to certify financial statements [1].

The evolving role of the CAO is also gaining strategic significance. Spencer Stuart, a global executive search firm, notes that modern CAOs are increasingly expected to act as business partners, infrastructure builders, and leaders in operational and tax improvements. This shift reflects the broader transformation of the CFO role into a more strategic and forward-looking leadership position [1].

The findings align with growing interest in AI’s potential to ease the burden of repetitive and detailed tasks in finance and accounting. As CFOs delegate more operational functions, the integration of AI could further support their strategic focus, enabling companies to enhance productivity and leadership depth over time [1].

In related news, Kevin D. Cook was recently appointed CFO of Bumble Inc., bringing over 30 years of financial leadership experience from companies like Cloudera and Barracuda Networks. Meanwhile, Geoff Boyd joined New Charter Technologies as CFO, adding more than 25 years of experience from roles across telecom and technology sectors [1].

Overall, the study underscores that while financial incentives matter, long-term CFO retention hinges on reducing burnout through smart delegation—especially in accounting—a key operational stressor in the role. As companies look to future-proof their finance leadership, empowering CAOs is emerging as a best practice with measurable impact.

Source: [1] Want to retain your CFO? A new study points to empowering a great chief accounting officer (https://fortune.com/2025/08/07/retain-cfo-new-study-empowering-great-chief-accounting-officer/)