SOX Compliance Cited As A Reason For Rise In CFO Turnover

Pressure to comply with Sarbanes-Oxley has been cited as one of the reasons for the 20% increase in financial officer turnover at Fortune 500 companies. According to a survey by New York-based Russell Reynolds Associates, there were 23% more chief financial officers and 25% more controllers at big companies turnovers in 2004 than the year before. The survey noted that there was no up tick in treasurer changes.

Lorraine Hack, a member of the firm's financial officers practice, said "increased and relentless pressures" of SOX and the drive to beat previous-quarter numbers contribute to the changes.