Mustus Consulting

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Unravelling the European CFO Exodus: Insights into Financial Officer Turnover #CFO #scarcity #strategies As European organizations grapple with challenging macroeconomic trends, the turnover of Chief Financial Officers (CFOs) has surged to a four-year peak. This shift poses a considerable risk for organizations striving to retain their financial leaders amid an increasingly competitive market. In response to this trend, we delve into the dynamics of this CFO exodus and explore strategies for achieving a smooth transition. 1. CFO turnover has reached a four-year high across major indices such as the FTSE 350, DAX, and the Euronext 100. 2. A significant proportion (61%) of newly appointed CFOs are assuming the role for the first time. 3. Women CFOs are predominantly sourced externally due to the scarcity of internal talent. 4. CFO executive retirements have witnessed a notable increase, rising by 15 percentage points since 2022. Navigating the CFO Turnover Landscape: Strategies for Succession As CFO turnover becomes the new norm, organizations and executives invested in CFO succession planning are urged to take proactive measures. Recommendations and retention strategies: 1. Engage in ongoing career development conversations to retain CFOs by creating challenging opportunities within the organization. 2. Plan for CFO retirement by initiating dialogues around retirement plans, ensuring active involvement in succession planning. 3. Continue investing in succession planning, with a focus on developing and retaining women in finance to address gender diversity gaps. 4. Implement CFO mentorship programs to guide newly appointed CFOs through the challenges of their roles. 5. Check-in with underrepresented minorities, addressing their reasons for leaving and creating clear paths for career advancement. 6. Re-evaluate compensation to ensure competitiveness in the market and prevent talent loss to organizations offering more attractive packages during economic downturns. (Sources: FT.com, recruitment data Photo credit: bankrx)

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Navigating Accelerated CEO Turnover in the Tech Industry: Strategies for Succession Planning #CEO #Turnover #Strategies #resilience #Tech The tech industry is currently experiencing an unprecedented surge in CEO turnover, signalling the need for companies to proactively plan for leadership transitions. If present trends persist, 2024 is poised to witness the highest CEO turnover rate among public tech companies in the past three years, surpassing even the notable rates observed in 2023. The Mustus Consulting's research findings indicate that 69 CEOs stepped down in 2022, with a notable acceleration in turnover evident by the close of Q2 2023. Projections suggest a total of 88 CEO transitions by the end of the year, marking a significant uptick, second only to the anomalies of 2021 during the global economic downturn prompted by the pandemic. Navigating a Dynamic Environment: The accelerated turnover is attributed to the tightening of tech markets at the close of 2022, prompting boards to critically assess the suitability of their CEOs for steering through a more disciplined and profit-oriented growth phase. As companies face the pressures of accelerating growth, market share expansion, and emerging tech disruptions like generative AI, the trend is anticipated to persist into 2024. Strategies for Succession Planning: To effectively respond to this challenging market environment, tech companies and their boards are advised to implement the following strategies: 1.     Ensure CEO Skill Set Alignment: Boards should meticulously define the "future CEO success profile," ensuring that CEOs possess the requisite experience to achieve strategic and financial objectives. Tech companies are actively seeking CEOs with specialized expertise in areas crucial for growth, such as go-to-market strategies, strategic product development, and scaled operations. 2.     Foster Internal Talent and Monitor External Candidates: Proactive succession planning is essential for long-term value creation. Given the historical lack of robust CEO succession planning in tech companies, developing internal talent that can transcend functional boundaries is vital. Regularly benchmarking leadership teams against external CEO and C-suite talent helps ensure a robust pool of candidates. 3.     Active Board Engagement: Boards are playing increasingly hands-on roles, demanding prioritisation, and operational rigor. Tech companies are urged to compose boards with a diverse set of skills, including proven CEOs, qualified financial experts, and commercial leaders who can provide valuable guidance during leadership transitions. 4.     Optimise Team Dynamics: In the current demanding operating environment, it is crucial for tech companies to assemble effective leadership teams capable of seamless collaboration. A well-functioning senior leadership team can alleviate pressure on the CEO, who is under increased scrutiny for performance and results.

The Hunt for Talented System Integration Specialists: Latest Market Trends #Murex #Calypso #Temenos #FrontArena #AladdinBR In the fast-paced and ever-evolving world of finance, having access to skilled professionals with expertise in System integration, within leading financial technology platform, is crucial for success. However, with the growing demand for System integration specialists, finding and recruiting top talent has become a significant challenge for financial institutions. In this blog post, we will explore the latest news and developments in the search for talented System integration specialists and discuss effective strategies for attracting and retaining these sought-after professionals. The Growing Demand for System integration Specialists As financial institutions continue to invest in cutting-edge technology to stay competitive, the demand for System integration specialists has surged. These experts are essential in implementing, maintaining, and optimizing a platform to support trading, risk management, and other critical functions. Recent News and Market Trends 1.     Talent Shortage: The financial industry's growing appetite for System integration specialists has led to a noticeable talent shortage. Despite the increasing number of System integration training programs and certifications, the demand still outstrips the supply of skilled professionals. 2.     Competitive Salaries: To attract top-tier System integration specialists, companies are offering competitive salary packages, bonuses, and benefits. As a result, there is a salary inflation trend in the market for these niche professionals. 3.     Remote Work Opportunities: The pandemic has accelerated the adoption of remote work practices. Financial institutions are now more open to hiring System integration specialists who can work remotely, broadening the pool of potential candidates across geographical boundaries. 4.     Focus on Upskilling: Some companies are focusing on upskilling existing employees to meet the demand for System integration expertise. By offering training programs and mentorship opportunities, they are grooming internal talent for specialized roles.