The path from CFO to CEO
A recent article published in November on RetailDive shared the news that Away’s CFO, Catherine Dunleavy, transitioned into the President role. Away is a privately held company with over 500 employees in New York. They describe their operation as follows:
Away is a modern lifestyle brand creating thoughtful products designed to transform travel. Since our launch in February 2016, we have become one of the fastest growing consumer brands in the world. We have sold millions of travel products, grown from a team of four to over 250, expanded shipping to nearly 40 countries, opened seven stores across two countries, and launched several new products and experiences that are inspiring more people to travel the world. And we know that’s just the beginning!
What exactly are the roles of the company president and why would a CFO want this job?
Investopedia offers this contrast between the CEO and President: "In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge."
Not every company has a President role. Some have COOs who control operations. The COO is part of the C-Suite, but not always the second in command. Often the COO is a peer to the CFO in most cases. In companies that do have a President role, that position is the second highest ranking on the corporate ladder. In this situation at Away, it would appear that the CFO moving into the President role could be considered a promotion in rank and title. Most likely also in compensation.
Many CFOs will go no further in their job titles and they will reach the CFO level and retire from there. To build a career these CFOs can switch companies, each time earning the CFO title at a bigger operation. All things being equal, if you started your executive career as the CFO of a 100-employee company and 20 years later you became the CFO of a Fortune 100, that would be an impressive ride.
For some CFOs, that is not enough. They simply want to go all the way and become the top executive in charge. They want to be the CEO themselves. Many CFOs recognize they lack the operational experience to be considered for the top job. Some are so capable and earn the board's trust that they are promoted directly from the CFO seat to become a CEO. Others may at some point consider leaving the finance office and becoming a COO or President next. This is the path that Away’s CFO has chosen.
A former CFO who picks up operational and business decision-making experience as either a COO or President should make an attractive candidate for the CEO job.