Charting the CFO’s journey: Key insights from IMA India’s 2024 CXO Career Trajectory Report

India’s CFOs navigate a challenging journey shaped by evolving economic landscapes, reveals IMA India’s report on their experiences.

In the ever-shifting terrain of India Inc., the path to the C-suite is not a mere ascent but a rigorous journey that tests the mettle of its navigators. As the Indian economy continues to evolve, the journey of a Chief Financial Officer (CFO) reflects a blend of strategic foresight, unyielding perseverance, and the ability to adapt to relentless change. IMA India’s latest report, ”The CXO’s Journey: Climbing the Corporate Ladder”, sheds light on this intricate journey, offering a thorough analysis based on the experiences of over 340 senior executives across various industries. This report is a treasure trove of insights, revealing the distinct challenges, motivations, and aspirations that define the careers of CFOs in the new India. 

Academic foundations and professional milestones

Unsurprisingly, a solid foundation in finance is the cornerstone of most CFO careers in India. The report indicates that an overwhelming majority—79% at the undergraduate level and 88% at the postgraduate level—have studied finance. Moreover, the Chartered Accountancy (CA) certification remains a critical qualification, held by 80% of CFOs, with an additional 18% having pursued an MBA. 

The typical CFO surveyed boasts an impressive 26.7 years of work experience, including 14 years in senior management. This depth of experience is not just a marker of longevity but also of the strategic expertise that CFOs bring to the table. Interestingly, 77% of those who plan to stay with their current employer express contentment with their roles or harbour ambitions of advancing within their organisation.

Career mobility and gender disparities

Job mobility among CFOs varies significantly, with about half of the respondents having held more than four jobs throughout their careers. 

Personal challenges such as maintaining a work-life balance and fulfilling family responsibilities, emerge as major hurdles, particularly for those under 45. Organisational culture and politics also rank high among the challenges faced, with younger executives finding these aspects more daunting than their older counterparts. Female CXOs, in particular, report a greater struggle with work-life balance, highlighting the societal pressures and caregiving roles that disproportionately affect women in leadership positions.

Health, wellness, and the age factor

As CFOs advance in their careers, the balancing act extends beyond professional duties to encompass health and wellness. The report reveals that 82% of senior executives engage in regular exercise, acknowledging its benefits for stress reduction, mood enhancement, and energy levels. Yet, despite growing awareness of mental health issues in the corporate world, only 10% of CXOs seek professional counselling—a surprising statistic given the increasing focus on mental well-being.

The report also uncovers gender differences in health and wellness habits. Men are more likely to engage in regular exercise and maintain healthy diets, while women tend to focus more on stress management techniques and seeking support from colleagues or mentors. Age plays a crucial role as well, with older executives (aged 45-60) more diligent about their diet and sleep compared to their younger counterparts, who often prioritise career growth over personal well-being.

Navigating job transitions and skill development

The journey of a CXO is not without its obstacles, particularly when it comes to job transitions. Compensation-related issues top the list of challenges, followed closely by organisational politics and the pervasive glass ceiling, particularly for women. Interestingly, while those under 55 cite compensation as the biggest challenge, older CXOs (55 and above) are more likely to encounter age bias.

However, not all transitions are fraught with difficulty. Approximately 31% of CFOs report finding it relatively easy to switch jobs, thanks to high-demand skills, robust personal networks, and the scarcity of qualified executives for certain roles. The importance of strong interpersonal skills is highlighted by 41% of CFOs, who feel the need to sharpen these abilities, alongside a third who recognise the need to improve their technological skills.

The role of mentorship and future aspirations

Mentorship emerges as a key element in the professional development of CFOs, though the frequency of mentor interactions varies. CFOs are less likely to meet with their mentors monthly compared to other C-suite executives, yet they leverage their experience and networks to navigate job transitions more effectively.

As CFOs reach the peak of their careers, their aspirations evolve. A significant 80% aim to ascend to global or group CFO roles, with 60% expressing interest in transitioning to CEO positions. Board responsibilities also attract many CFOs, with an average of 2.3 board roles per CFO, as they prepare for the next phase of their careers.

Interestingly, entrepreneurship ranks as a key motivator for those planning early retirement, though CFOs are generally less entrepreneurial than their C-suite peers. 

The strategic balancing act

The report paints a complex and nuanced picture of the professional lives of CFOs in India. It highlights the strategic balancing act required to navigate the challenges of career advancement, personal well-being, and future aspirations. As the Indian business landscape continues to evolve, the insights from this report provide valuable guidance for current and aspiring CFOs, helping them to chart their course with greater clarity and confidence.