23rd Aug 2023 11:46
(Alliance News) - Reckitt Benckiser Group PLC on Wednesday became the latest FTSE 100 firm to announce a change in financial leadership, with over a third of the large-cap index's constituents changing up their chief financial officer this year.
The consumer goods firm said its Chief Financial Officer Jeff Carr will retire next March, with Shannon Reinhardt to replace him. Reinhardt is currently CFO at Nike Consumer, Brand & Marketplace. She will join the firm as CFO designate in October.
"It is fair to say 2023 will go down in history as the year of the revolving door at UK PLC. Reckitt's appointment of a change in CFO represents the 35th FTSE 100 company this year to say their numbers person is leaving," said AJ Bell investment director Russ Mould.
It's the highest figure "by some mile" since the investment company began keeping tabs back in 2000.
"So far this year, 21 CFO changes have already happened among FTSE 100 companies – there are 10 to come in 2023 and four more are due to happen in 2024."
This month, Smith & Nephew PLC announced Anne-Francoise Nesmes will step down, Beazley said Sally Lake will bid farewell next year, and Spirax-Sarco's Engeering PLC CFO Nimesh Patel stepped up into the CEO role.
In late July, abrdn PLC revealed it had poached Persimmon PLC's Jason Windsor. On the same day, it was announced Weir Group PLC's John Heasley would depart for Anglo American PLC. A few days before, Vodafone Group PLC hired Luka Mucic, and Rolls-Royce Holdings PLC named Helen McCabe as its new finance chief.
"Why is this happening? It's down to lots of different reasons but one could suggest some are getting out while the going is still good from an economic perspective," Mould explained.
"CFOs typically move jobs for one of five key reasons: retirement, seeking a fresh challenge, becoming CEO, missing out on the CEO role so they see no reason to stay with their current employer, or because they don't get along with a new CEO."
After recovering from the pandemic period, businesses are looking to their next stage of development. This "next step thinking" often results in a shake up of leadership to "breathe new life into a business", Mould said.
To see a change in the boardroom is "natural" in this context, he explained.
By Elizabeth Winter, Alliance News senior markets reporter
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