Research shows surge in departures of FTSE100 finance directors
Research by KPMG shows there has been a significant surge in the number of FTSE100 finance directors who are leaving their jobs – and that 2005 could set a new high in the number of departures. The analysis underlines how finance directors are now under increasing pressure from both their boards and investors – and that there is now a growing shortage of people able to take on the top-level finance positions in the UK's biggest companies.
Among the main findings:
In the first 14 weeks of 2005, eight FTSE100 finance directors announced that they would leave their jobs. Five of these announcements coincided with a company profit warning. The profit warnings were issued between two days and eight months prior to the announcement of FD departures.
This compares to a total of 11 finance directors who left their jobs in FTSE 100 companies in the whole of 2004. None coincided with a profit warning.
Seven FTSE100 finance directors left their roles in 2003. None coincided with a profit warning.
Alan Buckle, head of Risk Advisory Services at KPMG (UK), said: "The number of FTSE100 finance directors leaving their jobs is clearly much higher than normal, and is of concern.