CFOs becoming CEOs: The leadership trend reshaping corporate India

A quiet but unmistakable shift is unfolding in corporate boardrooms: Chief Financial Officers are increasingly being elevated to the top job.

For years, the CEO role was often associated with charismatic sales heads, visionary founders or operational leaders. Today, however, the finance chief — once seen primarily as the custodian of accounts — is being viewed as a natural successor to the corner office.

Ashish Dhir, Senior Director (Consumer and Retail) at 1Lattice, explains that at its core, every business exists to generate value and ensure sustainable profitability. CFOs, he says, sit at the centre of that mandate.

“CFOs are typically among the most trusted executives for promoters and founders. They understand the financial backbone of the company — unit economics, margins, cost structures, capital efficiency, risk and compliance. That makes them extremely valuable when organisations evaluate leadership succession,” Dhir notes.

The India and global playbook

The trend is visible across sectors and geographies.

In India, Manish Dawar, former CFO of Devyani International, is set to take over as CEO from April this year. P.B. Balaji, who served as CFO of Tata Motors, was appointed CEO of Jaguar Land Rover in 2025. Manoj Bhat transitioned from CFO of the Mahindra Group to CEO of Mahindra Holidays & Resorts India in 2024.

In fintech, Nalin Negi moved from CFO and interim CEO at BharatPe to the full-time CEO role in 2024. Meanwhile, Aditya Pande, former CFO of IndiGo’s parent InterGlobe Enterprises, has taken charge as Group CEO in 2024.

Globally, the pattern is similar. Recent examples include Nik Jhangiani at Diageo, alongside leaders such as Sony Group Corporation’s Director, President & CEO Hiroki Totoki; Unilever CEO Fernando Fernandez; and Yum! Brands CEO Chris Turner — all of whom have held CFO responsibilities before stepping into broader leadership roles.

The advertising sector has also seen this trajectory. Anand Bhadkamkar led Dentsu Aegis Network South Asia as CFO & COO before becoming CEO of Dentsu Aegis Network India in 2019, a role he held until 2021.

Read More: Balance sheets to boardrooms: CFOs in contention for CEO roles

Data backs the momentum. A 2025 media report citing CristKolder Associates noted that in 2023, 8.4 percent of vacant CEO positions across the Fortune 500 and S&P 500 were filled by CFOs — the highest level since 2013.

Further, an analysis by Russell Reynolds Associates, as mentioned in the article, of the top 100 BSE-listed companies found that CFO turnover in 2024 rose to 24 percent, up from 15 percent in 2023. Of the outgoing CFOs, 11 moved into new roles, while the rest retired or shifted to board-only positions. Among those who transitioned to new roles, 45 percent remained within their companies, stepping into CEO or divisional CEO positions.

Globally, the numbers are equally telling. In 2022, 33 percent of S&P 500 CFOs who changed jobs became CEOs, compared with 8.8 percent the previous year, as per the article. The Global CFO Turnover Index, covering the S&P 500, FTSE 100 and Euronext 100, highlighted that 34 percent of outgoing CFOs who took on new roles in 2024 moved into President or CEO positions, up from 20 percent in 2023. Another 15 percent transitioned to divisional CEO roles, up from 11 percent.

Why now?

According to Dhir, the strengthening of this trend over the past eight to ten years accelerated sharply after COVID-19. Periods of economic uncertainty elevated the importance of cash-flow management, capital allocation and risk mitigation — all areas where CFOs traditionally excel.

“A CFO’s mindset — focused on efficiency, capital discipline, ratios and cost control — overlaps significantly with what a CEO must ensure at an organisational level. That alignment explains why CFOs are often considered natural successors,” he says.

In India, heightened scrutiny around governance has further strengthened the case for finance leaders. Events such as the IL&FS crisis in 2017–18 intensified the focus on transparency, compliance and risk oversight, increasing the relevance of finance leaders in top management roles.

Ashish Sanganeria, Senior Partner at Transearch, points to proximity to performance as another critical factor. “After the CEO, the CFO has the clearest view of profitability, burn rate, expansion plans and overall financial health,” he says.

Because of the nature of their role, CFOs are required to understand how decisions across marketing, sales, operations and logistics impact margins and long-term viability. “While functions often work in silos, the CFO must see the full picture — how spending in one area affects the entire business,” Sanganeria adds.

In listed companies, boards often prefer leaders who bring financial clarity and discipline. The ability to evaluate trade-offs, improve capital efficiency and track value creation makes the CFO-to-CEO transition a logical progression.

Beyond the numbers

That said, most successful CFO-turned-CEOs tend to bring multi-functional exposure. Sanganeria cites Anish Shah at the Mahindra Group, who was the deputy MD and group CFO before becoming Group CEO & MD. Similarly, global examples such as Turner at Yum! Brands and Fernandez at Unilever reflect finance leaders who broadened their operational and strategic scope before stepping up.

The transition, however, requires a shift in mindset.

“CEOs must take calculated risks and think beyond immediate financial metrics,” Sanganeria explains. “Decisions cannot be based purely on top-line and bottom-line considerations; they must anticipate future growth.”

He points to emerging FMCG brands such as The Whole Truth and other protein-led companies that identified early consumer shifts around sugar and palm oil. Acting on such trends requires forward-looking investments — something CFOs stepping into CEO roles must consciously embrace.

The opportunity — and the challenge

Radhika Balakrishnan, Founder of CXO Incubator and Executive Coach, observes that the CFO role itself has evolved significantly. It now extends beyond accounts and reporting into strategic leadership, capital allocation, mergers and acquisitions, fundraising and expansion planning.

“Whenever a company evaluates a greenfield project, a brownfield expansion or an acquisition, the CFO is deeply involved. In many ways, that exposure grooms them for the CEO role,” she says.

Promoting internal talent also offers continuity. Leaders who have spent 15–20 years within an organisation understand its culture, values and strategic direction, reducing the disruption that can accompany external hires. Overdependence on a single high-profile CEO, she notes, can create vulnerability if succession planning is weak.

However, the CEO mandate extends beyond finance and strategy.

Balakrishnan describes the role as a “CFO-plus” position. While CFOs often manage financial and strategic levers, CEOs must also build culture, align teams, manage morale and embody organisational values.

“When CFOs transition into CEO roles, they must strengthen their focus on people management, culture and communication,” she says. “If they successfully integrate financial discipline with strong leadership and cultural stewardship, they can become highly effective CEOs.”

Dhir echoes this view, noting that CFOs may need to develop greater external visibility and experience in marketing, brand-building and public communication. “Man-management can also be a challenge,” he says. “A CEO must align diverse functions and maintain morale across the organisation.”

Yet, these are not fixed limitations. Many finance leaders acquire and refine these capabilities once they step into broader leadership roles.

A structural overlap

While other CXO roles — from HR to marketing — can and do transition into CEO positions, the CFO’s remit overlaps most directly with the CEO’s fundamental responsibility: delivering sustainable profitability.

“Suitability ultimately depends on the company’s priorities,” Dhir says. “In some businesses, operational excellence or people leadership may be more critical. But structurally, the CFO role tends to have the strongest overlap with the CEO mandate.”

Balakrishnan adds that since nearly every major initiative ties back to financial viability, CFOs are often involved in a broad spectrum of strategic decisions. That structural alignment naturally positions them as strong contenders for elevation.

Looking ahead, both Dhir and Sanganeria expect the trend to continue, particularly in technology, consumer and private equity-backed businesses where financial discipline and governance remain paramount.

First Published on February 20, 2026, 09:08:09 IST