Over the past couple of decades, CFOs have considerably expanded their management roles, in some cases also taking on the position of chief operating officer. Does is really make sense?
A recent academic study says yes. The research could find no evidence that the dual role adversely affects operations—and it does save on C-suite salaries. Findings were derived from data gathered from 2000 through 2016 on a sample of 438 companies with a CFO/COO and 3,100 with the roles separate.
The study found that CFOs in the duality firms were about 20% less likely to be CPAs, but also concluded, “Managers from a financial background can fulfill operational roles admirably.” Review the details of this research.