Will Sarbanes-Oxley turn CFOs back into bean counters? Finance chiefs have had little time for strategy in the four years since the law was passed, according to a study by a prominent headhunting firm.
Here's one more thing to blame on the Sarbanes-Oxley Act: an increase in job churn for CFOs of Fortune 500 companies. A study released this month by Russell Reynolds Associates found that 19 percent of large-company finance chiefs left their posts in 2005, up from 16 percent the previous year and 13 percent in 2003.
While resignations helped boost the total, promotions did not. Russell Reynolds, a headhunting firm, found a 25 percent decrease in the number of CFOs who rose to the chief executive slot. Further, the report attributed 3 percent of the CFO leave-takings to dismissals, a higher percentage than in either of the two previous years.
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