The trend for private equity to invest in UK businesses had led to more FDs losing their jobs more frequently, new research shows.
Finance directors have a one in four chance of being sacked after private equity invests in their organisation, according to a new study.
The risk however has not deterred FDs from becoming PE 'serialists', said a report by Grant Thornton and Directorbank.
The survey of 283 executive and non-executive directors who have completed at least one private equity deal, found FDs have a 28% chance of being replaced, while CEOs have a 24% chance of being replaced.
David Ascott, head of private equity at Grant Thornton, said: 'Finance directors in particular suffer from several risk factors including the demands of leverage calling for a significant change in financial sophistication, external investors scrutinising their work more closely than that of other executive directors, their skills being seen as more of a commodity.'
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