From CFO to CEO: A Transformative Journey

If there is one role within organizations that can be considered a true laboratory for future CEOs, it is that of the CFO. This role goes far beyond finance, encompassing aspects such as strategy, culture, risk management, ESG, among others. In recent years, the position of CFO has evolved significantly: 82% of CFOs state that the role has expanded considerably in the last five years, according to a recent global survey of CFOs by Egon Zehnder.

It is no coincidence that many CFOs see the natural progression of their careers culminating in the position of CEO. Although the trajectory is not linear, it is filled with learning and personal transformation as being a CEO requires, in addition to technical skills, mastery of broader business dynamics and an intentional deepening of leadership skills. “Since all business decisions ultimately have a financial implication for the organization, the role of the CFO offers an opportunity to have a 360-degree view of the business and, therefore, is the most logical role to eventually grow into and become CEO,” stated one of the CFOs participating in the survey.

In this article, we interview four prominent former CFOs who serve as CEOs in various industries. We explore their motivations behind this career aspiration, the essential skills for the transition, the necessary personal and professional growth, and invaluable advice for those who intend to embark on this journey. We also contrast their stories with the key findings of our survey regarding this significant career leap.

“The modern CFO must possess CEO-like characteristics, acting as an influencer to the CEO. This management triad between CEO, CFO, and HR is fundamental.”
Kleber Gomes, CEO of OuroFino Saúde Animal and former CFO of the company

This sentiment illustrates how CFOs have expanded their competencies and worked closely with the CEO, gaining a more holistic view of the business. In fact, the “Super CFO” survey indicates that 60% of CFOs intend to ascend to the position of CEO – and, of these, 7 out of ten already feel fully prepared to take the helm. However, a crucial moment in this process is being identified and prepared as a potential successor, which represents a true shift in gear for the executive.

For Kleber, the initiative came from the shareholders who recognized his potential, even though he came from the finance area, which was not the most expected for succession in the company. At the same time, he admits that he was confronted with a “reality check” when he was nominated in the succession process, adding that this was the starting point for a change in mindset, development of personal skills, and expansion of his relational abilities.

A holistic view of the business was a critical point in the nomination of Diego Barreto, CEO of iFood. He always brought a curiosity lens to the CFO role, which was essential for the transition to the top position. “I am not risk-averse; on the contrary, I have become someone who knows how to operate innovation, explore options at a basic level, and discover what works best through interactions,” he says. During his time as CFO, Barreto explains, he covered a wide range of responsibilities: communication, legal, public policy, strategy, M&A, and the creation of other areas at iFood (food and meal) and P&L, factors that prepared him to become CEO.

For Lorival Luz, CEO of Alloha and formerly CEO of BRF, the CEO position came naturally after career planning and experiences that solidly positioned him to take the next step. “After being CFO at CPFL, BRF, and Votorantim Cimentos, the path I saw ahead was that of CEO. I always sought growth and asked myself where I could find more challenges. For me, this meant expanding my scope of responsibilities,” he notes.

Data from Egon Zehnder’s CFO survey highlights some trends regarding the career leap to CEO. Of the 60% of CFOs who stated they aspire to assume the CEO position in the future, seven out of ten already feel ready now. Among CFOs who also serve as internal advisors and aspiring CEOs, 67% currently feel ready; the percentage for external advisors is 80%. CFOs with multiple previous experiences in the role (77%) also feel more capable of taking on the CEO position now compared to first-time CFOs (67%).

We also found variations by industry: Of those aspiring to the CEO role, just over half of CFOs in the Technology and Communications sector (55%) say they are ready to be CEO now, compared to 82% of CFOs in the Health and Pharmaceutical areas. The level of readiness also varies depending on the company’s structure: 74% of CFOs from listed companies feel ready now, and the number is even higher for companies in the revenue range of USD 6-10 billion, compared to only 56% of CFOs from family-owned businesses.

Although most CFOs act as “co-pilots” of their organizations, many recognize that it is practically impossible to be fully prepared for the next step. The CEO role requires extraordinary planning to handle unforeseen events and high adaptability to deal with market and stakeholder complexities. This requires focus and intention in expanding leadership skills.

Among the main gaps for assuming the CEO role, the global survey highlights networking and visibility, mentioned by 46% of respondents. Other factors include customer focus and market knowledge (30%), operational expertise (25%), innovation (18%), and personal style and mindset change (15%).

The experiences of the interviewed CEOs corroborate and complement these global trends, with personal development trajectories involving both significant internal and external changes – reflecting the need for holistic and personalized preparation for each executive profile, the current company context, and future vision. “During the succession process, I realized that to be an effective CEO, I needed to be more empathetic and accessible. This meant improving my relationships with people and moving away from the analytical mindset of a CFO,” explains Kleber from OuroFino Saúde Animal. The executive, who took on the role during the challenging pandemic period, found it necessary to enhance his knowledge of psychology and effective communication. “It wouldn’t have worked otherwise,” he reflects. Besides the human aspect, the CEO also recalls that immersion in the commercial side of the business boosted his technical preparation. “Few delve deeply into the commercial area, which is underutilized in development,” he emphasizes.

For Diego Barreto from iFood, there was a mindset shift. “The focus was on how to sustain consistent behavior, be open to more opinions, accept more challenges, and organize the team around this mindset,” he explains. “It all comes down to mindset and how you perceive things. It’s challenging. Turning an introvert into an extrovert, or transforming an innovator into an operator, is what we call ambidexterity - the ability to do two opposite things simultaneously. It’s about adapting to each situation,” he concludes.

Lorival from Alloha emphasizes the need to shift gears and detach from the “CFO mode,” as well as adopting a humble attitude to seek learning in areas that were not his specialty. “The beginning is like the discipline of a student. When you don’t understand or know something, dive deep through factory visits, customer interactions, contact with all teams, and leave the CFO duties to the new CFO. Avoid the temptation to take the easy way out, and never position yourself in meetings as you did when you were CFO, or you will be seen as such. You really need to shift gears,” he advises.

For the CEO of a global infrastructure services company we interviewed, there was also an expansion of relational skills. “I left the technical position as CFO. Opening up to people management can be a challenge, but I had training in interpersonal relationships,” he recalls. Another change was moving from a tactical view to having a broader market perspective. “As CFO, everyone relies on you to execute perfect tactics. Being a CEO is different. You have to observe market movements. Success becomes about understanding supply and demand, market behavior, and the need for returns for shareholders. It’s about having a more strategic mindset and understanding market dynamics,” he points out.

Think like a CEO. Even if the CEO role is not an immediate goal, adopting a CEO mindset, seeking to understand the organizational context comprehensively, adopting strategic thinking, and developing leadership qualities is essential. By behaving like a CEO, CFOs can better prepare for the next step in their careers.

“Think like a CEO. Because regardless of whether you aspire to the position or not, there is no reason for a CFO not to prepare and act as such.” - Diego Barreto, CEO of iFood

Communicate the strategy clearly. Clearly conveying the “why” behind decisions promotes alignment and commitment among team members. CEOs are the main evangelists of their organizations. Mastering this skill prepares current CFOs for when they assume this role.

“CFOs evaluate performance, movements, and returns. Often, it is possible to think that the math is in others’ heads; a CFO expects everyone to have an understanding of the company’s quantitative summary. However, as CEO, I spend 50% of my time explaining the strategy’s ‘why’ to people.” - CEO of a global private infrastructure services company

Be the best CFO you can be, but have the humility to seek help. Before aspiring to the CEO position, exploring your full potential as a CFO is fundamental; be a complete CFO. This includes mastering financial knowledge, operational efficiency, and stakeholder management. This way, you can build greater credibility to act as CEO.

“Self-confidence, determination, and humility to ask for help, listening to the opinion of those more experienced than you. Do not try to solve everything alone, especially in challenging times. Understand legitimate management concerns, commit to the company’s culture, and demonstrate the right attitude.” - Lorival Luz, CEO of Alloha

Lead with a people-centered approach and have a holistic vision. Besides technical skills, CFOs must understand psychology, communication, and culture. Developing empathy, influence, and collaboration and expanding relationships is essential for effective management.

“Modern CFOs must mirror the characteristics of CEOs, acting as influencers even without executive authority.” - Kleber Gomes, CEO of OuroFino Saúde Animal

Is there a precise way to be fully prepared for the CEO position? While there is no exact answer, the preparation is undoubtedly challenging and rewarding in equal measure.

The leaders we interviewed provide valuable insights from those who have traveled the path from CFO to CEO: prioritizing self-development during—and even before—the succession process is a fundamental prerequisite for effective leadership as a CEO. This involves enhancing relational, adaptive, and self-aware skills, as well as seeking a high level of understanding of the business as a whole. It also requires openness so that, upon taking the helm, the future CEO learns the nuances that can only be perceived by those who occupy the chair.

The role of CFO is indeed a “school” on the way to the top. Despite the growing complexity faced by CEOs, who balance immediate demands with long-term goals, business sustainability, and unforeseen challenges, intentional executive development is the most assertive path for CFOs, both during the journey to the CEO position and to navigate the future challenges of the top role.