The rise in the count of CEOs and CFOs is observable.

Breaking the Glass Ceiling: Boom in Female Leadership in 2024's Finance Sector

In a year dominated by political and economic uncertainties, the business world faced unprecedented challenges, with events ranging from international conflicts to government crises. However, amid the turmoil, the finance sector witnessed an extraordinary shift, with a significant increase in female leadership, as shown in the DAX - the German stock market index.

2024: A Pivotal Year

In this era of uncertainty, forward-thinking companies have prioritized stability and continuity while filling leadership positions. For instance, the chemical company BASF tapped a seasoned veteran, Markus Kamieth, who had been working at the firm for 25 years, to lead the company through challenging times.

Women Taking the Reigns

One of the most remarkable developments was the increasing number of women at the helm of DAX companies. The year 2024 saw the number of female CEOs surpass a record high for the first time, with seven women appointed to the management of DAX companies alone in the second half of the year. At this point, three women were leading DAX companies concurrently:

Bettina Orlopp (54) took over the leadership of Commerzbank after the departure of CEO Manfred Knof (59) in early October.
Belén Garijo (52) had been at the helm of Merck since May 2021.
Karin Rådström (45) became the chairwoman of Daimler Truck in October, joining her colleagues as the third woman in charge of a DAX company.

These appointments demonstrate a trend towards diversity in leadership roles, as companies focus on continuity during periods of high uncertainty and develop their internal talent for key positions within their own ranks.

Continuity from Within

This emphasis on continuity extended to institutions such as the Deutsche Börse, which regulated the succession for its CEO, who was leaving at the end of the year, internally for the first time. Stephan Leithner (57) will take sole leadership of the exchange from 2025.

Unprecedented Changes in the CFO Sphere

However, despite the focus on continuity in leadership roles, the finance sector has experienced an unexpectedly high turnover rate among CFOs. While the reasons for this trend are complex, some factors include:

External Hiring Practices: Many CFOs are recruited from outside the company, leading to shorter average tenures and higher turnover rates.
High-Pressure Role : CFO roles face intense pressures related to financial reporting, regulatory compliance, investor relations, and strategic financial planning.
Retirements and Succession: Many CFOs leave due to retirements or planned successions, contributing to turnover.
Market and Regulatory Volatility: Economic volatility and regulatory changes pose additional challenges, potentially accelerating CFO turnover.
Shorter Tenure Norm: The CFO role is often viewed as an interim or stepping-stone position, resulting in CFOs moving on to other companies or roles more frequently.

In conclusion, while the finance sector has seen a reshuffling at its top tiers, the trend towards diversity in leadership roles has remained strong throughout 2024. Despite the challenges faced by CFOs, companies have continued to prioritize continuity, balance, and change in their leadership teams.

In the finance sector of 2024, the trend towards diversity persisted, with an unprecedented rise in female leadership positions. Notably, seven women were appointed as CEOs of DAX companies, including Bettina Orlopp of Commerzbank, Belén Garijo of Merck, and Karin Rådström of Daimler Truck. Meanwhile, the finance industry grappled with an unusual high turnover rate among CFOs, due to a combination of external hiring practices, pressures related to their role, retirements, market volatility, and the perceived transient nature of the CFO position. The Deutsche Börse, on the other hand, ensured continuity by appointing Stephan Leithner as its CEO from within the organization.